FAC Explorer

Audit 322955

FY End
2023-12-31
Total Expended
$3.57M
Findings
4
Programs
1
Organization: Sigma Beta Xi, Inc. (CA)
Year: 2023 Accepted: 2024-09-30
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
500112 2023-001 Significant Deficiency Yes I
500113 2023-002 Significant Deficiency Yes I
1076554 2023-001 Significant Deficiency Yes I
1076555 2023-002 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.57M Yes 2

Contacts

Name Title Type
XEPREX9UGRH9 Darrell Peeden Auditee
9512148180 Kendra Dockham Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by Sigma Beta Xi, Inc., that are reimbursable under federal programs of federal agencies providing financial assistance. For the purposes of this schedule, only the portions of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of Sigma Beta Xi, Inc., and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.American Rescue Plan Act Funds Loan Sigma Beta Xi, Inc., entered into a loan agreement for the use of American Rescue Plan Act funds authorized under the American Rescue Plan Act of 2021. The funds were used to pay the cost to acquire 3.79-acre property comprised of five contiguous parcels and convert into a permanent supportive housing development for Transition Age Youth, foster care youth transitioning out of foster care, and families with children known as the Moreno Valley Youth Village in the City of Moreno Valley. Per the Federal Register/Vol 28, No. 248, the beginning balance of federal loans are to be reported as an expenditure on the schedule of expenditures of federal awards each year. The principal balance of the loan, as of December 31, 2023, is $3,571,671. De Minimis Rate Used: N Rate Explanation: Sigma Beta Xi, Inc., does not have a negotiated indirect cost rate with a cognizant federal agency. They have not elected to use the 10% de minimis cost rate. Costs incurred are allocated directly based on the agency’s cost allocation plan.

Finding Details

Finding 2023-001
Criteria: The requirements for non-procurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition: The Organization had covered transactions for goods and services that exceeded $25,000 during the year. Prior to entering into the covered transactions, the Organization did not verify that the service provider was not suspended, debarred, or otherwise excluded by the Federal Government. Context: The Organization made payments to four vendors for services and goods in excess of $25,000, per vendor, during the period of the audit. Per our testing, the Organization did not have documentation showing that prior to entering into transactions with the vendors the Organization verified that the vendors were not suspended or disbarred by the Federal Government. As part of our testing, we verified that all four vendors were not suspended or disbarred. Cause: The Organization did not have a process in place to identify covered transactions or verify that entities providing goods or services are not suspended or debarred. Effect: The Organization entered into covered transactions without knowing if the entity was suspended or disbarred from the transaction. Recommendation: We recommend that the Organization implement the established written policy that identifies when the Organization enters a covered transaction and the necessary steps to take prior to entering into a covered transaction to verify that an entity is not suspended or disbarred and complete the required Contractor Debarment Certification Form for all covered transactions. Management’s Response: Management agrees.
Finding 2023-002
Criteria: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: The Organization does not have a documented procurement policy that conforms to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Context: During the year, the Organization entered into contracts for services that was greater than the Simple Acquisition Threshold of $250,000. As part of the audit procedures, we requested the Organization’s documented procurement policy. The Organization did not have a documented procurement policy. Prior to entering agreements to making purchases in excess of the simplified acquisition threshold, the Organization performed a price analysis in a manner consistent with 2 CFR Part 200. Cause: The Organization was not aware that a documented procurement policy was required. Effect: Without documented procurement policies, the Organization could procure assets in a manner that is not consistent with 2 CFR Part 200. Recommendation: We recommend that the Organization familiarize themselves with the requirements of 2 CFR sections 200.318 through 200.326 and develop a documented procurement policy that conforms to applicable federal statutes and procurement requirements. Management’s Response: Management agrees.
Finding 2023-001
Criteria: The requirements for non-procurement suspension and debarment are contained in OMB guidance in 2 CFR Part 180, which implements Executive Orders 12549 and 12689, “Debarment and Suspension;” federal awarding agency regulations in Title 2 of the CFR adopting/implementing the OMB guidance in 2 CFR Part 180; program legislation; and the terms and conditions of the award. Condition: The Organization had covered transactions for goods and services that exceeded $25,000 during the year. Prior to entering into the covered transactions, the Organization did not verify that the service provider was not suspended, debarred, or otherwise excluded by the Federal Government. Context: The Organization made payments to four vendors for services and goods in excess of $25,000, per vendor, during the period of the audit. Per our testing, the Organization did not have documentation showing that prior to entering into transactions with the vendors the Organization verified that the vendors were not suspended or disbarred by the Federal Government. As part of our testing, we verified that all four vendors were not suspended or disbarred. Cause: The Organization did not have a process in place to identify covered transactions or verify that entities providing goods or services are not suspended or debarred. Effect: The Organization entered into covered transactions without knowing if the entity was suspended or disbarred from the transaction. Recommendation: We recommend that the Organization implement the established written policy that identifies when the Organization enters a covered transaction and the necessary steps to take prior to entering into a covered transaction to verify that an entity is not suspended or disbarred and complete the required Contractor Debarment Certification Form for all covered transactions. Management’s Response: Management agrees.
Finding 2023-002
Criteria: Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: The Organization does not have a documented procurement policy that conforms to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Context: During the year, the Organization entered into contracts for services that was greater than the Simple Acquisition Threshold of $250,000. As part of the audit procedures, we requested the Organization’s documented procurement policy. The Organization did not have a documented procurement policy. Prior to entering agreements to making purchases in excess of the simplified acquisition threshold, the Organization performed a price analysis in a manner consistent with 2 CFR Part 200. Cause: The Organization was not aware that a documented procurement policy was required. Effect: Without documented procurement policies, the Organization could procure assets in a manner that is not consistent with 2 CFR Part 200. Recommendation: We recommend that the Organization familiarize themselves with the requirements of 2 CFR sections 200.318 through 200.326 and develop a documented procurement policy that conforms to applicable federal statutes and procurement requirements. Management’s Response: Management agrees.