FAC Explorer

Audit 323260

FY End
2023-12-31
Total Expended
$771,246
Findings
8
Programs
9
Organization: Family Service Association of Howard County (IN)
Year: 2023 Accepted: 2024-09-30
Auditor: Katz Sapper & Miller LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501020 2023-002 Material Weakness Yes AB
501021 2023-003 Material Weakness - AB
501022 2023-004 Material Weakness - G
501023 2023-005 Material Weakness - H
1077462 2023-002 Material Weakness Yes AB
1077463 2023-003 Material Weakness - AB
1077464 2023-004 Material Weakness - G
1077465 2023-005 Material Weakness - H

Programs

ALN Program Spent Major Findings
14.231 Emergency Solutions Grant Program $222,343 Yes 3
14.267 Continuum of Care Program $170,148 Yes 0
16.575 Crime Victim Assistance $48,561 - 0
16.017 Sexual Assault Services Formula Program $45,008 - 0
97.024 Emergency Food and Shelter National Board Program $22,619 - 0
14.218 Community Development Block Grants/entitlement Grants $21,515 - 0
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $17,113 - 0
93.667 Social Services Block Grant $16,100 - 0
93.569 Community Services Block Grant $798 - 0

Contacts

Name Title Type
SB8EM47W4W87 Angela Ciski Auditee
7655138504 Scott Schuster Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Family Service Association of Howard County, Inc. and FSA Asset Management, Inc. (collectively, FSA). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of FSA, it is not intended to and does not present the financial position, changes in operations, or cash flows of FSA. In addition, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. 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 or federal award guidance when such cost principles are not applicable to the specific federal award. Subrecipients: FSA provided no funds to subrecipients in 2023. De Minimis Rate Used: N Rate Explanation: FSA has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Family Service Association of Howard County, Inc. and FSA Asset Management, Inc. (collectively, FSA). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of FSA, it is not intended to and does not present the financial position, changes in operations, or cash flows of FSA. In addition, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. 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 or federal award guidance when such cost principles are not applicable to the specific federal award. Subrecipients: FSA provided no funds to subrecipients in 2023.
Title: NOTE 2 - INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Family Service Association of Howard County, Inc. and FSA Asset Management, Inc. (collectively, FSA). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of FSA, it is not intended to and does not present the financial position, changes in operations, or cash flows of FSA. In addition, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. 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 or federal award guidance when such cost principles are not applicable to the specific federal award. Subrecipients: FSA provided no funds to subrecipients in 2023. De Minimis Rate Used: N Rate Explanation: FSA has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. FSA has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Criteria: 2 CFR 200.430(i) indicates costs must be based on records that accurately reflect the work performed to be considered allowable. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition and Context: We selected 4 months of payroll expense charged to the grant for testing during the audit and noted that each month had at least one employee who did not have detailed time sheets or time studies to adequately support the hours charged to the grant. Our sample covered 7 employees over these 4 months and 3 of the employees tested did not have adequate support for the time charged. We tested a total of $33,351 of claimed payroll cost and identified known questioned costs of $3,770 which resulted in likely questioned costs of $5,308 using an error rate of 11% over total payroll claimed for 2023 of $46,955. Our sample was not considered to be a statistically valid sample. This finding is a repeat finding of 2022-002. Cause and Effect: The lack of adequate documentation to support time charged to the federal award combined with the finding 2023-003 resulted in material noncompliance to the referenced compliance requirements and to the program as a whole. Recommendation: We recommend the Association implement procedures for all employees who have payroll claimed under federal programs to prepare detailed timecards or time studies to support the distribution of each employee's compensation among specific activities, including the allocation of compensation to federal awards. These records should be reviewed by the employee's supervisor for accuracy. Views of Responsible Officials and Planned Corrective Actions: The Association agrees with the finding and plans to implement their corrective action during October 2024.
Finding 2023-003
Criteria: 2 CFR 200.403(g) indicates costs must be adequately documented in order to be considered allowable. Condition and Context: We selected 40 disbursements for testing during the audit and noted one expense to replenish petty cash which lacked adequate documentation. We tested 40 expenses for a total of $14,423 of claimed disbursements and identified known questioned costs of $650 which resulted in likely questioned costs of $9,742 using an error rate of 5% over total disbursements for 2023 of $216,163. Total likely questioned costs were 4% of overall ESG expenditures for 2022. Our sample was not considered to be a statistically valid sample. Cause and Effect: The lack of adequate documentation to support time charged to the federal award combined with the finding 2023-002 resulted in material noncompliance to the referenced compliance requirements and to the program as a whole. Recommendation: We recommend the Association implement procedures to ensure that the Association's policies and procedures requiring the maintenance of documentation to support expenditures claimed under federal awards be followed consistently for all claimed expenditures. Views of Responsible Officials and Planned Corrective Actions: The Association agrees with the finding and plans to implement their corrective action during October 2024.
Finding 2023-004
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Association must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)”. Condition and Context: We noted that a formal tracking and review process did not exist for earmarking of administrative costs relating to ESES-CV-020-0038 and ESRR-CV-020-0014. However, no noncompliance with the earmarking for either award was noted during testing. The Association did not spend funds under the other awards under this assistance listing number which would require tracking, review and approval procedures to be implemented during 2023. Cause and Effect: The lack of adequate documentation to support earmarking for the federal award could have resulted in material noncompliance to the referenced compliance requirement and to the program as a whole. Recommendation: We recommend the Association implement formal tracking, review and approval procedures over earmarking levels for federal awards ESES-CV-020-0038 and ESRR-CV-020-0014. Views of Responsible Officials and Planned Corrective Actions: The Association agrees with the finding and plans to implement their corrective action during October 2024.
Finding 2023-005
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Association must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)”. Condition and Context: We noted a formal review and approval process did not exist for monthly payment vouchers submitted to The Department of Housing and Urban Development (HUD) under federal awards IN0193L5H022105 and IN0193L5H022206. However, no noncompliance with the period of performance for either award was noted in items selected for testing. An appropriately designed formal review and approval process was implemented and operating effectively for the Association's other awards under this assistance listing number. Cause and Effect: The deficiency noted above could result in inaccurate claims being submitted under federal awards IN0193L5H022105 and IN0193L5H022206. Recommendation: We recommend the Association implement a formal review and approval process over monthly payment vouchers submitted to HUD for federal awards IN0193L5H022105 and IN0193L5H022206 similar to the processes and procedures implemented for the other awards under this assistance listing number. Views of Responsible Officials and Planned Corrective Actions: The Association agrees with the finding and plans to implement their corrective action during October 2024.
Finding 2023-002
Criteria: 2 CFR 200.430(i) indicates costs must be based on records that accurately reflect the work performed to be considered allowable. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition and Context: We selected 4 months of payroll expense charged to the grant for testing during the audit and noted that each month had at least one employee who did not have detailed time sheets or time studies to adequately support the hours charged to the grant. Our sample covered 7 employees over these 4 months and 3 of the employees tested did not have adequate support for the time charged. We tested a total of $33,351 of claimed payroll cost and identified known questioned costs of $3,770 which resulted in likely questioned costs of $5,308 using an error rate of 11% over total payroll claimed for 2023 of $46,955. Our sample was not considered to be a statistically valid sample. This finding is a repeat finding of 2022-002. Cause and Effect: The lack of adequate documentation to support time charged to the federal award combined with the finding 2023-003 resulted in material noncompliance to the referenced compliance requirements and to the program as a whole. Recommendation: We recommend the Association implement procedures for all employees who have payroll claimed under federal programs to prepare detailed timecards or time studies to support the distribution of each employee's compensation among specific activities, including the allocation of compensation to federal awards. These records should be reviewed by the employee's supervisor for accuracy. Views of Responsible Officials and Planned Corrective Actions: The Association agrees with the finding and plans to implement their corrective action during October 2024.
Finding 2023-003
Criteria: 2 CFR 200.403(g) indicates costs must be adequately documented in order to be considered allowable. Condition and Context: We selected 40 disbursements for testing during the audit and noted one expense to replenish petty cash which lacked adequate documentation. We tested 40 expenses for a total of $14,423 of claimed disbursements and identified known questioned costs of $650 which resulted in likely questioned costs of $9,742 using an error rate of 5% over total disbursements for 2023 of $216,163. Total likely questioned costs were 4% of overall ESG expenditures for 2022. Our sample was not considered to be a statistically valid sample. Cause and Effect: The lack of adequate documentation to support time charged to the federal award combined with the finding 2023-002 resulted in material noncompliance to the referenced compliance requirements and to the program as a whole. Recommendation: We recommend the Association implement procedures to ensure that the Association's policies and procedures requiring the maintenance of documentation to support expenditures claimed under federal awards be followed consistently for all claimed expenditures. Views of Responsible Officials and Planned Corrective Actions: The Association agrees with the finding and plans to implement their corrective action during October 2024.
Finding 2023-004
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Association must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)”. Condition and Context: We noted that a formal tracking and review process did not exist for earmarking of administrative costs relating to ESES-CV-020-0038 and ESRR-CV-020-0014. However, no noncompliance with the earmarking for either award was noted during testing. The Association did not spend funds under the other awards under this assistance listing number which would require tracking, review and approval procedures to be implemented during 2023. Cause and Effect: The lack of adequate documentation to support earmarking for the federal award could have resulted in material noncompliance to the referenced compliance requirement and to the program as a whole. Recommendation: We recommend the Association implement formal tracking, review and approval procedures over earmarking levels for federal awards ESES-CV-020-0038 and ESRR-CV-020-0014. Views of Responsible Officials and Planned Corrective Actions: The Association agrees with the finding and plans to implement their corrective action during October 2024.
Finding 2023-005
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Association must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)”. Condition and Context: We noted a formal review and approval process did not exist for monthly payment vouchers submitted to The Department of Housing and Urban Development (HUD) under federal awards IN0193L5H022105 and IN0193L5H022206. However, no noncompliance with the period of performance for either award was noted in items selected for testing. An appropriately designed formal review and approval process was implemented and operating effectively for the Association's other awards under this assistance listing number. Cause and Effect: The deficiency noted above could result in inaccurate claims being submitted under federal awards IN0193L5H022105 and IN0193L5H022206. Recommendation: We recommend the Association implement a formal review and approval process over monthly payment vouchers submitted to HUD for federal awards IN0193L5H022105 and IN0193L5H022206 similar to the processes and procedures implemented for the other awards under this assistance listing number. Views of Responsible Officials and Planned Corrective Actions: The Association agrees with the finding and plans to implement their corrective action during October 2024.