Audit 328481

FY End
2024-06-30
Total Expended
$16.54M
Findings
2
Programs
11
Organization: Self-Help Enterprises (CA)
Year: 2024 Accepted: 2024-11-14

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
507997 2024-001 - - A
1084439 2024-001 - - A

Contacts

Name Title Type
YWCPA31KBJY6 David Ebenezer Auditee
5596511000 Tanna Tucker Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION 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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the Schedule. Pass-through entity identifying numbers are presented where available. Self-Help Enterprises did not provide federal funds to sub-recipients. De Minimis Rate Used: N Rate Explanation: Self-Help Enterprises has elected not to use the 10 percent 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 Self- Help Enterprises under programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of OMB’s Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Self-Help Enterprises, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Self-Help Enterprises.
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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the Schedule. Pass-through entity identifying numbers are presented where available. Self-Help Enterprises did not provide federal funds to sub-recipients. De Minimis Rate Used: N Rate Explanation: Self-Help Enterprises has elected not to use the 10 percent de minimis indirect cost rate as 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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the Schedule. Pass-through entity identifying numbers are presented where available. Self-Help Enterprises did not provide federal funds to sub-recipients.
Title: NOTE 3 – 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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the Schedule. Pass-through entity identifying numbers are presented where available. Self-Help Enterprises did not provide federal funds to sub-recipients. De Minimis Rate Used: N Rate Explanation: Self-Help Enterprises has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Self-Help Enterprises has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 4 – RELATIONSHIP TO FEDERAL FINANCIAL REPORTS 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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the Schedule. Pass-through entity identifying numbers are presented where available. Self-Help Enterprises did not provide federal funds to sub-recipients. De Minimis Rate Used: N Rate Explanation: Self-Help Enterprises has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Information included in the accompanying Schedule of Expenditures of Federal Awards is in substantial agreement with the information reported in the related financial reports for major programs.
Title: NOTE 5 – FEDERAL LOAN BALANCES OUTSTANDING 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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the Schedule. Pass-through entity identifying numbers are presented where available. Self-Help Enterprises did not provide federal funds to sub-recipients. De Minimis Rate Used: N Rate Explanation: Self-Help Enterprises has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following schedule summarizes the outstanding loan balances for federal programs as of June 30, 2024: Bear Creek Housing Community 10.405 $ 1,572,839 Casas de la Vina 10.405 $683,473 Vera Cruz Village 10.405 $300,605 Sunrise Villa 10.405 $119,727 Total farm labor housing loans and grants $2 ,676,644 Total outstanding loan balances at June 30, 2024 $ 2,676,644

Finding Details

Condition: The Schedule of Expenditures of Federal Awards (SEFA) initially provided by the Organization was incorrect. After the errors were identified, the SEFA was adjusted to accurately report total federal awards expended. Criteria: A strong system of internal controls and management review requires that expenditures for all federal grants are accumulated and included on the SEFA in compliance with applicable standards. Cause: Internal controls over the preparation of an accurate SEFA were not properly designed and were not placed in operation. Effect: As a result of this condition, federal grant expenditures were understated by $3,920,000. The final SEFA was corrected and is properly presented. Recommendation: We recommend the Organization develop and implement a more robust system for the preparation of the SEFA for financial reporting purposes and compliance with auditee requirements identified in the Uniform Guidance. The Organization should review grant agreements and identify the proper method of reporting expenditures. Activity should reconcile to information in the accounting system as well as be reflected in the accounting system. The process should include a secondary review of the schedule by someone other than the preparer.
Condition: The Schedule of Expenditures of Federal Awards (SEFA) initially provided by the Organization was incorrect. After the errors were identified, the SEFA was adjusted to accurately report total federal awards expended. Criteria: A strong system of internal controls and management review requires that expenditures for all federal grants are accumulated and included on the SEFA in compliance with applicable standards. Cause: Internal controls over the preparation of an accurate SEFA were not properly designed and were not placed in operation. Effect: As a result of this condition, federal grant expenditures were understated by $3,920,000. The final SEFA was corrected and is properly presented. Recommendation: We recommend the Organization develop and implement a more robust system for the preparation of the SEFA for financial reporting purposes and compliance with auditee requirements identified in the Uniform Guidance. The Organization should review grant agreements and identify the proper method of reporting expenditures. Activity should reconcile to information in the accounting system as well as be reflected in the accounting system. The process should include a secondary review of the schedule by someone other than the preparer.