Audit 325109

FY End
2023-12-31
Total Expended
$2.40M
Findings
12
Programs
1
Year: 2023 Accepted: 2024-10-17

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
503104 2023-001 Material Weakness - E
503105 2023-002 Material Weakness - L
503106 2023-003 Material Weakness - M
503107 2023-004 Material Weakness - H
503108 2023-005 Material Weakness - L
503109 2023-006 Significant Deficiency - P
1079546 2023-001 Material Weakness - E
1079547 2023-002 Material Weakness - L
1079548 2023-003 Material Weakness - M
1079549 2023-004 Material Weakness - H
1079550 2023-005 Material Weakness - L
1079551 2023-006 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $2.40M Yes 6

Contacts

Name Title Type
NT4XL1YGLGC5 Gail Lane Auditee
1732915992 Jonald Walker Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Accounting 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Southwest Magic Food Program, Inc. has not elected to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Southwest Magic Food Program, 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 the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Note 2 - 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Southwest Magic Food Program, Inc. has not elected to use the 10-percent de minims indirect cost rate 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Note 3 - Sub-recipient of Federal Expenditures 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Southwest Magic Food Program, Inc. has not elected to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. Of the federal expenditures presented in the Schedule, there were no payments to sub-recipients for the year ended December 31, 2023.
Title: Note 4 – Indirect Cost Rate 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Southwest Magic Food Program, Inc. has not elected to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. Southwest Magic Food Program, Inc. has not elected to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.
Title: Note 5 – Non-Cash Assistance 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Southwest Magic Food Program, Inc. has not elected to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. No federal awards were expended in the form of non-cash assistance during the fiscal year ended December 31, 2023.
Title: Note 6 – Relationship to Financial Statements 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Southwest Magic Food Program, Inc. has not elected to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. Amounts reported in the Schedule of Expenditures of Federal Awards agree with the amounts reported in the related federal financial reports.

Finding Details

The Organization failed to provide documentation that was properly filled out. In several instances the enrollment forms were missing signatures and dates of the parent/guardian at several daycare institutions.
The Organization did not ensure their sponsored sites maintain point-of-service source documentation for meal counts on a daily basis.
The Organization did not have an adequate enrollment process that accounted for: - Each participant to be enrolled with all elements of enrollment properly obtained directly from the parent/guardian; - Enrollment to be updated annually for each participant; - An accurate master list of participants to be maintained and that; - All records of enrollment were properly kept on file for each participant per program regulations
The Organization did not provide documentation that makes it clear that employees attended the training sessions with signatures and dates, nor proof that training was provided at some centers.
The Organization failed to request approval for Specific Prior Written Approval (SPWA) for certain expenditures such as bookkeeping services, rental expense, telephone service, or meal tracking software. The Organization failed to provide supporting documentation, as required for all labor costs reported. Employees listed in the approved budget were classified as independent contractors.
The Organization’s completed its Uniform Guidance audit more than nine (9) months after its December 31, 2023 fiscal year end.
The Organization failed to provide documentation that was properly filled out. In several instances the enrollment forms were missing signatures and dates of the parent/guardian at several daycare institutions.
The Organization did not ensure their sponsored sites maintain point-of-service source documentation for meal counts on a daily basis.
The Organization did not have an adequate enrollment process that accounted for: - Each participant to be enrolled with all elements of enrollment properly obtained directly from the parent/guardian; - Enrollment to be updated annually for each participant; - An accurate master list of participants to be maintained and that; - All records of enrollment were properly kept on file for each participant per program regulations
The Organization did not provide documentation that makes it clear that employees attended the training sessions with signatures and dates, nor proof that training was provided at some centers.
The Organization failed to request approval for Specific Prior Written Approval (SPWA) for certain expenditures such as bookkeeping services, rental expense, telephone service, or meal tracking software. The Organization failed to provide supporting documentation, as required for all labor costs reported. Employees listed in the approved budget were classified as independent contractors.
The Organization’s completed its Uniform Guidance audit more than nine (9) months after its December 31, 2023 fiscal year end.