FAC Explorer

Audit 322723

FY End
2023-12-31
Total Expended
$1.98M
Findings
2
Programs
1
Organization: Home Builders Care, Inc. (AZ)
Year: 2023 Accepted: 2024-09-30
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499863 2023-001 Significant Deficiency - I
1076305 2023-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $1.98M Yes 1

Contacts

Name Title Type
SAW6G1RB2PQ7 Jackson Moll Auditee
6022746545 Colette Kamps Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Home Builders Care, Inc. elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Home Builders Care, Inc. under programs of the federal government for the year ended December 31, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule of Expenditures of Federal Awards presents only a portion of the operations of Home Builders Care, Inc. it is not intended to and does not present the financial position, results of operations and cash flows of the Organization.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Home Builders Care, Inc. elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Finding Details

Finding 2023-001
Criteria: A nonfederal entity must meet the general procurement standards in 2 CFR section 200.320 relating to use of the micro-purchase method for procurements under $10,000, and section 180.220 relating to the prohibition of contracting with parties that are suspended or debarred if total annual transactions equal or are in excess of $25,000. Condition: Home Builders Care, Inc. does not have a policy or process to perform checks on suspension and debarment check for vendors they transact with and were unaware of this compliance requirement. In addition, Home Builders Care, Inc.'s procurement policy defines the micro-purchase threshold at $50,000 but does not qualify for raising this threshold from $10,000. As a result of this discrepancy, Home Builders Care, Inc. did not obtain price and rate quotations for two vendors from an adequate number of qualified sources to ensure the selection process was competitive. Cause: Home Builders Care, Inc. was not aware of the requirement to perform suspension and debarment checks. Also, Home Builders Care, Inc. was not aware of the requirements to be able to self-certify for an increased micro-purchase threshold to $50,000. Effect: There is a potential effect that Home Builders Care, Inc. could have utilized vendors that were suspended or debarred by the federal government. There is also a potential effect that Home Builders Care, Inc. could have utilized vendors that were not as competitive as others. Questioned Costs: None. Recommendation: We recommend that Home Builders Care, Inc. update its procurement policy as follows: (1) to state that the threshold for micro-purchases is $10,000; (2) to add wording relating to a required process to perform suspension and debarment checks on at least an annual basis; and (3) to add wording to describe the organization's process relating to purchases from Home Depot, Amazon, and other similar types of vendors. This description may, for example, state that for these types of vendors, at the time of purchase, organization personnel will perform online price checks prior to making purchases to ensure that the purchases are the most advantageous to the organization for price, quality and other factors considered. Views of responsible officials: Home Builders Care, Inc. concurs with the recommendation. See Corrective Action Plan.
Finding 2023-001
Criteria: A nonfederal entity must meet the general procurement standards in 2 CFR section 200.320 relating to use of the micro-purchase method for procurements under $10,000, and section 180.220 relating to the prohibition of contracting with parties that are suspended or debarred if total annual transactions equal or are in excess of $25,000. Condition: Home Builders Care, Inc. does not have a policy or process to perform checks on suspension and debarment check for vendors they transact with and were unaware of this compliance requirement. In addition, Home Builders Care, Inc.'s procurement policy defines the micro-purchase threshold at $50,000 but does not qualify for raising this threshold from $10,000. As a result of this discrepancy, Home Builders Care, Inc. did not obtain price and rate quotations for two vendors from an adequate number of qualified sources to ensure the selection process was competitive. Cause: Home Builders Care, Inc. was not aware of the requirement to perform suspension and debarment checks. Also, Home Builders Care, Inc. was not aware of the requirements to be able to self-certify for an increased micro-purchase threshold to $50,000. Effect: There is a potential effect that Home Builders Care, Inc. could have utilized vendors that were suspended or debarred by the federal government. There is also a potential effect that Home Builders Care, Inc. could have utilized vendors that were not as competitive as others. Questioned Costs: None. Recommendation: We recommend that Home Builders Care, Inc. update its procurement policy as follows: (1) to state that the threshold for micro-purchases is $10,000; (2) to add wording relating to a required process to perform suspension and debarment checks on at least an annual basis; and (3) to add wording to describe the organization's process relating to purchases from Home Depot, Amazon, and other similar types of vendors. This description may, for example, state that for these types of vendors, at the time of purchase, organization personnel will perform online price checks prior to making purchases to ensure that the purchases are the most advantageous to the organization for price, quality and other factors considered. Views of responsible officials: Home Builders Care, Inc. concurs with the recommendation. See Corrective Action Plan.