FAC Explorer

Audit 323231

FY End
2023-12-31
Total Expended
$1.17M
Findings
2
Programs
8
Organization: Houston Area Urban League (TX)
Year: 2023 Accepted: 2024-09-30
Auditor: McConnell Jones LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
500928 2023-001 Material Weakness - P
1077370 2023-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
93.568 Low-Income Home Energy Assistance $475,773 Yes 1
93.011 National Organizations for State and Local Officials $311,627 - 0
17.285 Registered Apprenticeship $139,391 - 0
59.077 Community Navigator Pilot Program $87,891 - 0
99.U19 Housing Stability Counseling Program $71,930 - 0
17.261 Workforce Data Quality Initiative (wdqi) $54,797 - 0
93.185 Immunization Research, Demonstration, Public Information and Education Training and Clinical Skills Improvement Projects $18,193 - 0
14.169 Housing Counseling Assistance Program $13,804 - 0

Contacts

Name Title Type
DULVSALZ7153 Michael Stubbs Auditee
7133938742 Shawana Spann Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: Expenditures reported in the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the default 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Houston Area Urban League, Inc. under the programs of the federal government and the State of North Carolina for the year ended December 31, 2023. This information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of Houston Area Urban League, Inc., it is not intended to and does not pres nt the financial position, changes in net assets or cash flows of Houston Area Urban League, Inc.
Title: Note 2 – Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the default 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported in the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 – Indirect Costs Accounting Policies: Expenditures reported in the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the default 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has elected to use the default 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 – Clusters of programs Accounting Policies: Expenditures reported in the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the default 10% de minimis indirect cost rate allowed under the Uniform Guidance. There were no clusters of programs for the purposes of preparing the SEFA

Finding Details

Finding 2023-001
nternal control over financial reporting Criteria: An effect ve system of internal controls contemplates an adequate system for recording and processing entries material to the financial statements. Condition: During our audit, we identified five (5) material audit adjustments. Consequently, a material misstatement would have occurred in the Organization’s financial statements. Cause: While the Organization’s internal controls over financial reporting are appropriately designed, they were not fully implemented to prevent or detect material misstatements in the financial statements prepared according to U.S. Generally Accepted Accounting Principles (GAAP). Effect: The Organization may fail to prevent or detect material misstatements in its financial statements. Context: Adjustments were required to correct the following: • Cash • Grant receivables • Prepaid expenses • Buildings and construction in process • Right of use assets and liabilities • Notes Payable • Foundation and corporate grants • Other income • Accounts payable and expense Recommendation: We recommend that the Organization update its accounting manual to include a year-end checklist with standardized procedures for financial reporting and close processes. The audit committee should review and approve the financial statements and supplemental schedules before the audit begins. This will ensure that all necessary adjustments and disclosures are made to the financial statements for year-end reporting. Status: Corrective action plan was created on August 12, 2024 in response to receiving the audit finding.
Finding 2023-001
nternal control over financial reporting Criteria: An effect ve system of internal controls contemplates an adequate system for recording and processing entries material to the financial statements. Condition: During our audit, we identified five (5) material audit adjustments. Consequently, a material misstatement would have occurred in the Organization’s financial statements. Cause: While the Organization’s internal controls over financial reporting are appropriately designed, they were not fully implemented to prevent or detect material misstatements in the financial statements prepared according to U.S. Generally Accepted Accounting Principles (GAAP). Effect: The Organization may fail to prevent or detect material misstatements in its financial statements. Context: Adjustments were required to correct the following: • Cash • Grant receivables • Prepaid expenses • Buildings and construction in process • Right of use assets and liabilities • Notes Payable • Foundation and corporate grants • Other income • Accounts payable and expense Recommendation: We recommend that the Organization update its accounting manual to include a year-end checklist with standardized procedures for financial reporting and close processes. The audit committee should review and approve the financial statements and supplemental schedules before the audit begins. This will ensure that all necessary adjustments and disclosures are made to the financial statements for year-end reporting. Status: Corrective action plan was created on August 12, 2024 in response to receiving the audit finding.