FAC Explorer

Audit 325485

FY End
2023-09-30
Total Expended
$1.43M
Findings
2
Programs
3
Organization: Michigan Veterans Foundation, Inc. (MI)
Year: 2023 Accepted: 2024-10-22
Auditor: Tri-City Business Services

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503328 2023-001 - - L
1079770 2023-001 - - L

Programs

ALN Program Spent Major Findings
64.024 Va Homeless Providers Grant and Per Diem Program $1.36M Yes 1
14.231 Emergency Solutions Grant Program $48,298 - 0
14.218 Community Development Block Grants/entitlement Grants $15,851 - 0

Contacts

Name Title Type
V65ALRHNLHV1 Raeda Dabaja Auditee
3138315500 Zikora Okafor Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Wherein certain types of expenditures are not allowable or are limited as to reimbursement. Michigan Veterans Foundation, Inc. (A Nonprofit Organization) has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Gudiance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Michigan Veterans Foundation, Inc. (A Nonprofit Organization) under programs of the federal government for the year ended September 30, 2023. The information in the 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). Because the Schedule presents only a selected portion of the operations of Michigan Veterans Foundation, Inc. (A Nonprofit Organization), it is not intended to and does not present the financial position, changes in net assets, or cash flows of Michigan Veterans Foundation, Inc. (A Nonprofit Organization).
Title: Major Programs Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Wherein certain types of expenditures are not allowable or are limited as to reimbursement. Michigan Veterans Foundation, Inc. (A Nonprofit Organization) has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Gudiance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Major Programs are identified in the Summary of Auditors Results section of the Schedule of Findings and Questioned Costs.

Finding Details

Finding 2023-001
Condition: The audit reporting package submission to Veterans Association will be delayed by three months. Criteria: According to 2 CFR 200.507(c)(1), the audit must be completed, and the reporting required by paragraphs (c)(2) or (c)(3) must be submitted within either 30 calendar days of receiving the auditor's report or nine months after the end of the audit period, unless a different timeframe is specified in a program-specific audit guide. Cause: Transition in accounting personnel (book-keeping service provider) during the year and change in auditors for financial year ended September 30, 2023. Effect: It delayed completion of the financial statement closing process and thus the audit. Recommendation: a) Develop a structured timeline for future audits, and b) Implement a robust training program/ Knowledge Transfer plan for accounting service providers. Management’s Response: We acknowledge the finding regarding the delay in submitting the audit report as required by 2 CFR 200.507(c)(1). The delay was primarily due to a transition in our accounting personnel and a change in auditors, which resulted in unforeseen challenges. To address this issue, we have taken the following steps: a)Accountant Training: We are implementing a training program for our accounting personnel to ensure they are well-versed in compliance requirements and audit processes. b)Audit Timeline Improvement: We are developing a more structured timeline for future audits, including earlier engagement with auditors to facilitate a smoother process. c)Regular Monitoring: We will establish a system for regular monitoring of compliance deadlines to prevent future delays.
Finding 2023-001
Condition: The audit reporting package submission to Veterans Association will be delayed by three months. Criteria: According to 2 CFR 200.507(c)(1), the audit must be completed, and the reporting required by paragraphs (c)(2) or (c)(3) must be submitted within either 30 calendar days of receiving the auditor's report or nine months after the end of the audit period, unless a different timeframe is specified in a program-specific audit guide. Cause: Transition in accounting personnel (book-keeping service provider) during the year and change in auditors for financial year ended September 30, 2023. Effect: It delayed completion of the financial statement closing process and thus the audit. Recommendation: a) Develop a structured timeline for future audits, and b) Implement a robust training program/ Knowledge Transfer plan for accounting service providers. Management’s Response: We acknowledge the finding regarding the delay in submitting the audit report as required by 2 CFR 200.507(c)(1). The delay was primarily due to a transition in our accounting personnel and a change in auditors, which resulted in unforeseen challenges. To address this issue, we have taken the following steps: a)Accountant Training: We are implementing a training program for our accounting personnel to ensure they are well-versed in compliance requirements and audit processes. b)Audit Timeline Improvement: We are developing a more structured timeline for future audits, including earlier engagement with auditors to facilitate a smoother process. c)Regular Monitoring: We will establish a system for regular monitoring of compliance deadlines to prevent future delays.