FAC Explorer

Audit 325085

FY End
2023-05-31
Total Expended
$3.62M
Findings
4
Programs
7
Organization: Washington County Negro Business and Professional Women's Club, Inc. (GA)
Year: 2023 Accepted: 2024-10-17
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503073 2023-003 Significant Deficiency - F
503074 2023-003 Significant Deficiency - F
1079515 2023-003 Significant Deficiency - F
1079516 2023-003 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
93.600 Head Start $3.10M Yes 1
10.555 National School Lunch Program $354,535 - 0
84.425C Covid-19 Education Stabilization Fund - Governor's Emergency Education Relief Fund (geer) $91,833 - 0
93.575 Child Care and Development Block Grant $35,000 - 0
17.277 Covid-19 Wioa National Dislocated Worker Grant $25,676 - 0
10.558 Child and Adult Care Program $14,332 - 0
93.600 Covid-19 Head Start $851 Yes 1

Contacts

Name Title Type
K2KPMNHN7X25 Elizabeth Watts Auditee
4782400925 Keith Hundley Auditor
No contacts on file

Notes to SEFA

Title: Note 3: BASIS OF PRESENTATION Accounting Policies: This Schedule of Expenditures of Federal Awards (the “Schedule”) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Club’s federal grants. De Minimis Rate Used: N Rate Explanation: The Club has not elected to use the 10% de minimis indirect cost rate for the fiscal year ending May 31, 2023. The amounts reported in the Schedule were obtained from the Club’s general ledger. Because the Schedule presents only a selected portion of the operations, it is not intended to and does not present the financial position, changes in net assets and cash flows of the Club. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly with the federal government and other pass-through entities. Payments received for goods or services provided as a vendor do not constitute federal awards for purposes of the Schedule. The Club has obtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in the Schedule. ALNs have been appropriately listed by applicable programs. Federal programs with different ALNs that are closely related because they share common compliance requirements are defined as a cluster by the Uniform Guidance. Three clusters are identified in the Schedule as follows: Head Start Cluster This cluster provides awards to promote school readiness of low-income children (including American Indians, Alaska Natives, and migrant and season farm workers) by enhancing children’s cognitive, social and emotional development. Child Nutrition Cluster This cluster includes awards that assist states in administering food services that provide healthful, nutritious meals to eligible children in public and non-profit private schools, residential child care institutions, and summer recreation programs; and encourage the domestic consumption of nutritious agricultural commodities. Child Care Development Fund (CCDF) Cluster This cluster is the primary federal funding source to help certain low-income families access child care and to improve the quality of childcare for all children.
Title: Note 4: RELATIONSHIP OF THE SCHEDULE TO PROGRAM FINANCIAL REPORTS Accounting Policies: This Schedule of Expenditures of Federal Awards (the “Schedule”) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Club’s federal grants. De Minimis Rate Used: N Rate Explanation: The Club has not elected to use the 10% de minimis indirect cost rate for the fiscal year ending May 31, 2023. The amounts reflected in the financial reports submitted to the awarding federal and/or pass-through agencies and the Schedule may differ. Some of the factors that may account for any difference include the following:  The Club’s fiscal year end may differ from the program’s year-end.  Accruals recognized in the Schedule, because of year-end procedures, may not be reported in the program financial reports until the next program reporting period.  Fixed asset purchases and the resultant depreciation charges are recognized as fixed assets in the Club’s financial statements and as expenditures in the program financial reports and the Schedule.
Title: Note 5: FEDERAL PASS-THROUGH FUNDS Accounting Policies: This Schedule of Expenditures of Federal Awards (the “Schedule”) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Club’s federal grants. De Minimis Rate Used: N Rate Explanation: The Club has not elected to use the 10% de minimis indirect cost rate for the fiscal year ending May 31, 2023. The Club is also the sub-recipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal pass-through funds. Federal awards other than those indicated as “pass-through” are considered direct.
Title: Note 6: CONTINGENCIES Accounting Policies: This Schedule of Expenditures of Federal Awards (the “Schedule”) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Club’s federal grants. De Minimis Rate Used: N Rate Explanation: The Club has not elected to use the 10% de minimis indirect cost rate for the fiscal year ending May 31, 2023. Grant monies received and disbursed by the Club are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. The Club does not believe that such disallowance, if any, would have a material effect on its financial position. As of May 31, 2023, there were no material questioned or disallowed costs as a result of grant audits in process or completed.
Title: Note 7: NONCASH ASSISTANCE Accounting Policies: This Schedule of Expenditures of Federal Awards (the “Schedule”) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Club’s federal grants. De Minimis Rate Used: N Rate Explanation: The Club has not elected to use the 10% de minimis indirect cost rate for the fiscal year ending May 31, 2023. The Club did not receive any federal noncash assistance for the fiscal year ended May 31, 2023.
Title: Note 8: SUBRECIPIENTS Accounting Policies: This Schedule of Expenditures of Federal Awards (the “Schedule”) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Club’s federal grants. De Minimis Rate Used: N Rate Explanation: The Club has not elected to use the 10% de minimis indirect cost rate for the fiscal year ending May 31, 2023. The Club did not provide federal funds to subrecipients for the fiscal year ended May 31, 2023.
Title: Note 9: LOANS AND LOAN GUARANTEES Accounting Policies: This Schedule of Expenditures of Federal Awards (the “Schedule”) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Club’s federal grants. De Minimis Rate Used: N Rate Explanation: The Club has not elected to use the 10% de minimis indirect cost rate for the fiscal year ending May 31, 2023. The Club did not have any loans or loan guarantee programs required to be reported on the Schedule for the fiscal year ended May 31, 2023.
Title: Note 10: FEDERALLY FUNDED INSURANCE Accounting Policies: This Schedule of Expenditures of Federal Awards (the “Schedule”) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principal portion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Club’s federal grants. De Minimis Rate Used: N Rate Explanation: The Club has not elected to use the 10% de minimis indirect cost rate for the fiscal year ending May 31, 2023. The Club did not have any federally funded insurance required to be reported on the Schedule for the fiscal year ended May 31, 2023.

Finding Details

Finding 2023-003
Item 2023-003 Property and Equipment Management Assistance Listing Number 93.600 Head Start Cluster U.S. Department of Health and Human Services Pass-through Grant No. 04CH010931-04-01; 04HE000609-01-C5 Condition – The Inventory tracking sheet did not contain all required asset information and was not properly reconciled to property records. Criteria – 2 CFR 200.303(a) of the Uniform Guidance requires non-Federal entities to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR Part 200.313(d)(1) of the Uniform Guidance requires that property records must be maintained for equipment acquired under a federal award that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Club’s financial policies and procedures indicate a physical inventory of federal property will be taken annually. It also states that it will be reconciled by the purchasing and accounts payable bookkeeper. Cause – The Club did not include all required property information on inventory tracking sheet and information was not properly reconciled to property records due to staff turnover. Questioned Costs – Not determinable. Effect – Failure to comply with equipment management requirements could result in noncompliance with the grant agreements. Recommendation – We recommend the Club follow the requirements of 2 CFR Part 200.313 to ensure all assets are adequately accounted for. CRI also recommends that the Club include all of the information required by the granting Agency and Uniform Guidance in one central tracking spreadsheet and include the following fields in addition to the items previously being tracked and that spreadsheet is used to conduct a physical observation which is reconciled with the property records.at least once every two years. • the source of funding for the property (including the Federal award identification number), • who holds title, • the acquisition date, • cost of the property, • percentage of Federal participation in the project costs for the Federal award under which the property was acquired, • use and • condition of the property, • and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Management’s Response – Management has reviewed and accepted the finding. See “Corrective Action Plan”.
Finding 2023-003
Item 2023-003 Property and Equipment Management Assistance Listing Number 93.600 Head Start Cluster U.S. Department of Health and Human Services Pass-through Grant No. 04CH010931-04-01; 04HE000609-01-C5 Condition – The Inventory tracking sheet did not contain all required asset information and was not properly reconciled to property records. Criteria – 2 CFR 200.303(a) of the Uniform Guidance requires non-Federal entities to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR Part 200.313(d)(1) of the Uniform Guidance requires that property records must be maintained for equipment acquired under a federal award that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Club’s financial policies and procedures indicate a physical inventory of federal property will be taken annually. It also states that it will be reconciled by the purchasing and accounts payable bookkeeper. Cause – The Club did not include all required property information on inventory tracking sheet and information was not properly reconciled to property records due to staff turnover. Questioned Costs – Not determinable. Effect – Failure to comply with equipment management requirements could result in noncompliance with the grant agreements. Recommendation – We recommend the Club follow the requirements of 2 CFR Part 200.313 to ensure all assets are adequately accounted for. CRI also recommends that the Club include all of the information required by the granting Agency and Uniform Guidance in one central tracking spreadsheet and include the following fields in addition to the items previously being tracked and that spreadsheet is used to conduct a physical observation which is reconciled with the property records.at least once every two years. • the source of funding for the property (including the Federal award identification number), • who holds title, • the acquisition date, • cost of the property, • percentage of Federal participation in the project costs for the Federal award under which the property was acquired, • use and • condition of the property, • and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Management’s Response – Management has reviewed and accepted the finding. See “Corrective Action Plan”.
Finding 2023-003
Item 2023-003 Property and Equipment Management Assistance Listing Number 93.600 Head Start Cluster U.S. Department of Health and Human Services Pass-through Grant No. 04CH010931-04-01; 04HE000609-01-C5 Condition – The Inventory tracking sheet did not contain all required asset information and was not properly reconciled to property records. Criteria – 2 CFR 200.303(a) of the Uniform Guidance requires non-Federal entities to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR Part 200.313(d)(1) of the Uniform Guidance requires that property records must be maintained for equipment acquired under a federal award that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Club’s financial policies and procedures indicate a physical inventory of federal property will be taken annually. It also states that it will be reconciled by the purchasing and accounts payable bookkeeper. Cause – The Club did not include all required property information on inventory tracking sheet and information was not properly reconciled to property records due to staff turnover. Questioned Costs – Not determinable. Effect – Failure to comply with equipment management requirements could result in noncompliance with the grant agreements. Recommendation – We recommend the Club follow the requirements of 2 CFR Part 200.313 to ensure all assets are adequately accounted for. CRI also recommends that the Club include all of the information required by the granting Agency and Uniform Guidance in one central tracking spreadsheet and include the following fields in addition to the items previously being tracked and that spreadsheet is used to conduct a physical observation which is reconciled with the property records.at least once every two years. • the source of funding for the property (including the Federal award identification number), • who holds title, • the acquisition date, • cost of the property, • percentage of Federal participation in the project costs for the Federal award under which the property was acquired, • use and • condition of the property, • and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Management’s Response – Management has reviewed and accepted the finding. See “Corrective Action Plan”.
Finding 2023-003
Item 2023-003 Property and Equipment Management Assistance Listing Number 93.600 Head Start Cluster U.S. Department of Health and Human Services Pass-through Grant No. 04CH010931-04-01; 04HE000609-01-C5 Condition – The Inventory tracking sheet did not contain all required asset information and was not properly reconciled to property records. Criteria – 2 CFR 200.303(a) of the Uniform Guidance requires non-Federal entities to establish and maintain effective internal control over compliance with federal statutes, regulations, and the terms and conditions of federal awards. 2 CFR Part 200.313(d)(1) of the Uniform Guidance requires that property records must be maintained for equipment acquired under a federal award that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Club’s financial policies and procedures indicate a physical inventory of federal property will be taken annually. It also states that it will be reconciled by the purchasing and accounts payable bookkeeper. Cause – The Club did not include all required property information on inventory tracking sheet and information was not properly reconciled to property records due to staff turnover. Questioned Costs – Not determinable. Effect – Failure to comply with equipment management requirements could result in noncompliance with the grant agreements. Recommendation – We recommend the Club follow the requirements of 2 CFR Part 200.313 to ensure all assets are adequately accounted for. CRI also recommends that the Club include all of the information required by the granting Agency and Uniform Guidance in one central tracking spreadsheet and include the following fields in addition to the items previously being tracked and that spreadsheet is used to conduct a physical observation which is reconciled with the property records.at least once every two years. • the source of funding for the property (including the Federal award identification number), • who holds title, • the acquisition date, • cost of the property, • percentage of Federal participation in the project costs for the Federal award under which the property was acquired, • use and • condition of the property, • and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). Management’s Response – Management has reviewed and accepted the finding. See “Corrective Action Plan”.