FAC Explorer

Audit 327737

FY End
2024-06-30
Total Expended
$1.47M
Findings
2
Programs
3
Organization: National Arbor Day Foundation (NE)
Year: 2024 Accepted: 2024-11-08
Auditor: Hbe LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
505052 2024-001 Significant Deficiency - L
1081494 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.727 Inflation Reduction Act Urban & Community Forestry Program $889,565 Yes 1
10.675 Urban and Community Forestry Program $518,473 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $63,000 - 0

Contacts

Name Title Type
PMKQPLGMKEJ6 Nicole Rasmussen Auditee
4024739623 Krystal Siebrandt Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation. Accounting Policies: The accompanying schedule of federal awards includes the federal grant activity of National Arbor Day Foundation d/b/a Arbor Day Foundation and is presented on the accrual basis of accounting. Grant awards are considered expended when the expense transactions associated with the grant occur. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic consolidated financial statements. De Minimis Rate Used: Y Rate Explanation: The National Arbor Day Foundation d/b/a Arbor Day Foundation has elected to use the ten percent de minimis indirect cost rate as allowed in the Uniform Guidance, 2CFR 200.414. The accompanying schedule of federal awards includes the federal grant activity of National Arbor Day Foundation d/b/a Arbor Day Foundation and is presented on the accrual basis of accounting. Grant awards are considered expended when the expense transactions associated with the grant occur. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic consolidated financial statements.
Title: Subrecipients. Accounting Policies: The accompanying schedule of federal awards includes the federal grant activity of National Arbor Day Foundation d/b/a Arbor Day Foundation and is presented on the accrual basis of accounting. Grant awards are considered expended when the expense transactions associated with the grant occur. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic consolidated financial statements. De Minimis Rate Used: Y Rate Explanation: The National Arbor Day Foundation d/b/a Arbor Day Foundation has elected to use the ten percent de minimis indirect cost rate as allowed in the Uniform Guidance, 2CFR 200.414. The National Arbor Day Foundation d/b/a Arbor Day Foundation provided federal awards to subrecipients as presented in the schedule.
Title: Indirect Costs. Accounting Policies: The accompanying schedule of federal awards includes the federal grant activity of National Arbor Day Foundation d/b/a Arbor Day Foundation and is presented on the accrual basis of accounting. Grant awards are considered expended when the expense transactions associated with the grant occur. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic consolidated financial statements. De Minimis Rate Used: Y Rate Explanation: The National Arbor Day Foundation d/b/a Arbor Day Foundation has elected to use the ten percent de minimis indirect cost rate as allowed in the Uniform Guidance, 2CFR 200.414. The National Arbor Day Foundation d/b/a Arbor Day Foundation has elected to use the ten percent de minimis indirect cost rate as allowed in the Uniform Guidance, 2CFR 200.414.

Finding Details

Finding 2024-001
Noncompliance and Significant Deficiency in Internal Controls over Compliance for Reporting Identification data: U.S. Department of Agriculture – Inflation Reduction Act Urban & Community Forestry Program, Assistance Listing No. 10.727, Agreement Identifying No. 24-CA-11132544-D052 & 24-CA-11132544-015. Criteria: Appendix A to Part 170 of Title 2 CFR, Subtitle A, Chapter 1 describes the first-tier subaward reporting requirements under the Federal Funding Accountability and Transparency Act (FFATA), which requires prime recipients to report first-tier subawards to non-Federal entities equal to or exceeding $30,000 no later than the end of the month following the month in which the obligation was made. Condition: The Foundation failed to report its first-tier subawards subject to FFATA requirements by the end of the month following the month in which the obligation was made for five of the seven subawards tested. Additionally, the Foundation reported the incorrect amount of funds awarded in one of the seven subawards tested above. Cause: A breakdown in the Foundation’s internal controls over reporting did not allow the Foundation to meet the reporting requirements of the program. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Foundation from complying with the reporting requirements of the program. Identification of a Repeat Finding: New finding. Recommendation: The Foundation should review its system of internal controls over reporting to determine improvements that can be made to ensure the Foundation actively tracks and adheres to reporting requirements outlined in its award agreements and included in the CFR. Views of Responsible Officials: The Foundation will implement new controls to ensure compliance with the 30 day requirement.
Finding 2024-001
Noncompliance and Significant Deficiency in Internal Controls over Compliance for Reporting Identification data: U.S. Department of Agriculture – Inflation Reduction Act Urban & Community Forestry Program, Assistance Listing No. 10.727, Agreement Identifying No. 24-CA-11132544-D052 & 24-CA-11132544-015. Criteria: Appendix A to Part 170 of Title 2 CFR, Subtitle A, Chapter 1 describes the first-tier subaward reporting requirements under the Federal Funding Accountability and Transparency Act (FFATA), which requires prime recipients to report first-tier subawards to non-Federal entities equal to or exceeding $30,000 no later than the end of the month following the month in which the obligation was made. Condition: The Foundation failed to report its first-tier subawards subject to FFATA requirements by the end of the month following the month in which the obligation was made for five of the seven subawards tested. Additionally, the Foundation reported the incorrect amount of funds awarded in one of the seven subawards tested above. Cause: A breakdown in the Foundation’s internal controls over reporting did not allow the Foundation to meet the reporting requirements of the program. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Foundation from complying with the reporting requirements of the program. Identification of a Repeat Finding: New finding. Recommendation: The Foundation should review its system of internal controls over reporting to determine improvements that can be made to ensure the Foundation actively tracks and adheres to reporting requirements outlined in its award agreements and included in the CFR. Views of Responsible Officials: The Foundation will implement new controls to ensure compliance with the 30 day requirement.