FAC Explorer

Audit 330731

FY End
2024-06-30
Total Expended
$107.07M
Findings
2
Programs
7
Organization: Neighborhood House Association (CA)
Year: 2024 Accepted: 2024-12-03
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512937 2024-001 - - L
1089379 2024-001 - - L

Programs

ALN Program Spent Major Findings
93.600 Head Start $3.18M Yes 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $329,816 - 0
93.778 Medical Assistance Program $314,281 Yes 0
93.575 Child Care and Development Block Grant $151,614 - 0
93.914 Hiv Emergency Relief Project Grants $149,045 - 0
93.994 Maternal and Child Health Services Block Grant to the States $85,930 - 0
10.558 Child and Adult Care Food Program $9,082 - 0

Contacts

Name Title Type
QLBNPQRFLKQ8 Rosa Isela Marquez Auditee
8582448132 Craig A. Golding Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: The accompanying schedule of expenditures of federal and state award includes the federal and state grant activity of NHA under programs of the federal and state governments for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and with the requirements of the California Department of Education and California Department of Social Services Audit Guide. Because the Schedule presents only a selected portion of the operation of NHA, it is not intended to, and does not present, the financial position, changes in net assets or cash flows of NHA. De Minimis Rate Used: N Rate Explanation: The Auditee did not use the de minimis cost rate The accompanying schedule of expenditures of federal and state award includes the federal and state grant activity of NHA under programs of the federal and state governments for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and with the requirements of the California Department of Education and California Department of Social Services Audit Guide. Because the Schedule presents only a selected portion of the operation of NHA, it is not intended to, and does not present, the financial position, changes in net assets or cash flows of NHA.
Title: Summary of significant accounting policies Accounting Policies: The accompanying schedule of expenditures of federal and state award includes the federal and state grant activity of NHA under programs of the federal and state governments for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and with the requirements of the California Department of Education and California Department of Social Services Audit Guide. Because the Schedule presents only a selected portion of the operation of NHA, it is not intended to, and does not present, the financial position, changes in net assets or cash flows of NHA. De Minimis Rate Used: N Rate Explanation: The Auditee did not use the de minimis cost rate 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.
Title: Disclusure of Audit fees Accounting Policies: The accompanying schedule of expenditures of federal and state award includes the federal and state grant activity of NHA under programs of the federal and state governments for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and with the requirements of the California Department of Education and California Department of Social Services Audit Guide. Because the Schedule presents only a selected portion of the operation of NHA, it is not intended to, and does not present, the financial position, changes in net assets or cash flows of NHA. De Minimis Rate Used: N Rate Explanation: The Auditee did not use the de minimis cost rate In accordance with the audit disclosure requirements of the State of California, Department of Education, the audit contract for NHA for the fiscal year ended June 30, 2024 included an audit fee of approximately $177,625.
Title: Indirect cost rate Accounting Policies: The accompanying schedule of expenditures of federal and state award includes the federal and state grant activity of NHA under programs of the federal and state governments for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and with the requirements of the California Department of Education and California Department of Social Services Audit Guide. Because the Schedule presents only a selected portion of the operation of NHA, it is not intended to, and does not present, the financial position, changes in net assets or cash flows of NHA. De Minimis Rate Used: N Rate Explanation: The Auditee did not use the de minimis cost rate NHA has been assigned an indirect cost raqte of 10.0% for the Head Start program and 10.8% for Non-Head Start programs by its cognizant agency. Delegate agencies have been assigned an indirect cost rate of 2.0% by NHA's cognizant agency.
Title: Noncash assistance Accounting Policies: The accompanying schedule of expenditures of federal and state award includes the federal and state grant activity of NHA under programs of the federal and state governments for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and with the requirements of the California Department of Education and California Department of Social Services Audit Guide. Because the Schedule presents only a selected portion of the operation of NHA, it is not intended to, and does not present, the financial position, changes in net assets or cash flows of NHA. De Minimis Rate Used: N Rate Explanation: The Auditee did not use the de minimis cost rate In accordance with matching requirements for the Head Start program, the value of noncash assistance (in-kind donations) was $0 for fiscal year ended June 30, 2024.

Finding Details

Finding 2024-001
Criteria Under the requirements of the Federal Funding Accountability and Transparency Act ("FFATA") that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to identify awards subject to FFATA, collect and report information on each first tier subaward or amendment of $30,000 or more in federal funds in the FFATA Subaward Reporting System. Condition During our testing of FFATA reporting requirements we noted for 2 subrecipients tested the Organization did not perform the mandatory FFATA reporting requirements. Cause The Organization did not have adequate policies, procedures, and controls in place to ensure compliance with the requirements regarding FFATA reporting. Effect or Potential Effect Failure to comply with the reporting requirements of the Uniform Guidance could result in noncompliance with laws and regulations. Questioned Costs None. Context See the context of the finding detailed in the condition section above. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation We recommend that the Organization establish policies, procedures, and controls to ensure that the required information is reported in the FFATA Subaward Reporting System on a timely basis. Views of Responsible Officials Management reviewed the FFATA requirements and believes it has filed all award documentation to the FFATA in the appropriate amount of time. However, when submitting to the FSRS system no system generated email is issued showing that the filing was made on time and no screenshot was taken of the filing to substantiate the timely filing of the report to the auditors. Going forward the Organization will screenshot the submission to provide physical evidence to the auditors of the timely filing.
Finding 2024-001
Criteria Under the requirements of the Federal Funding Accountability and Transparency Act ("FFATA") that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to identify awards subject to FFATA, collect and report information on each first tier subaward or amendment of $30,000 or more in federal funds in the FFATA Subaward Reporting System. Condition During our testing of FFATA reporting requirements we noted for 2 subrecipients tested the Organization did not perform the mandatory FFATA reporting requirements. Cause The Organization did not have adequate policies, procedures, and controls in place to ensure compliance with the requirements regarding FFATA reporting. Effect or Potential Effect Failure to comply with the reporting requirements of the Uniform Guidance could result in noncompliance with laws and regulations. Questioned Costs None. Context See the context of the finding detailed in the condition section above. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation We recommend that the Organization establish policies, procedures, and controls to ensure that the required information is reported in the FFATA Subaward Reporting System on a timely basis. Views of Responsible Officials Management reviewed the FFATA requirements and believes it has filed all award documentation to the FFATA in the appropriate amount of time. However, when submitting to the FSRS system no system generated email is issued showing that the filing was made on time and no screenshot was taken of the filing to substantiate the timely filing of the report to the auditors. Going forward the Organization will screenshot the submission to provide physical evidence to the auditors of the timely filing.