FAC Explorer

Audit 3317

FY End
2022-12-31
Total Expended
$3.58M
Findings
4
Programs
1
Organization: Associated Black Charities, Inc. (MD)
Year: 2022 Accepted: 2023-11-15
Auditor: Sb & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1913 2022-001 Significant Deficiency - P
1914 2022-002 Significant Deficiency - LP
578355 2022-001 Significant Deficiency - P
578356 2022-002 Significant Deficiency - LP

Programs

ALN Program Spent Major Findings
93.914 Hiv Emergency Relief Project Grants $3.58M Yes 2

Contacts

Name Title Type
GEV4P925KAM1 Travis Curtis Auditee
4106590000 Stephen MacKall Auditor
No contacts on file

Notes to SEFA

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: All Federal grant operations of Associated Black Charities, Inc. (the Organization) are included in the scope of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit) for the year ended December 31, 2022. The Single Audit was performed in accordance with the provisions of the OMB Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major grant program noted below. The program on the schedule of expenditures of Federal awards represent all Federal award programs for fiscal year 2022 cash or non-cash expenditure activities. For our single audit testing, we tested Federal award programs to ensure coverage of at least 20% of Federally granted funds. Our actual coverage was 100%. Expenditures reported on the schedule of expenditures of Federal awards (the Schedule) 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 (the Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Management has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. All Federal grant operations of Associated Black Charities, Inc. (the Organization) are included in the scope of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit) for the year ended December 31, 2022. The Single Audit was performed in accordance with the provisions of the OMB Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major grant program noted below. The program on the schedule of expenditures of Federal awards represent all Federal award programs for fiscal year 2022 cash or non-cash expenditure activities. For our single audit testing, we tested Federal award programs to ensure coverage of at least 20% of Federally granted funds. Our actual coverage was 100%. Expenditures reported on the schedule of expenditures of Federal awards (the Schedule) 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 (the Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Management has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
Finding 2022-001 U.S. Department of Health and Human Services Programs: All Significant Deficiency over Financial Reporting Repeat Finding: No Condition: The Organization could not readily locate and provide supporting documentation for 2022 financial transactions. Criteria: Entities must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Entities must also maintain support for all financial transactions. Cause: The Organization experienced significant turnover in key management positions during fiscal year 2022. As a result, supporting documentation for financial transactions could not be located initially and were not readily available. Effect: Supporting documentation for financial transactions was not readily available for review which delayed the financial report process and the audit process, including late submission of the Single Audit. Questioned Costs: None. Recommendation: We recommend that the Organization ensure appropriate training, knowledge transfer, and succession planning within the organization to ensure that turnover in key management positions does not cause disruption to operations or financial reporting. We also recommend that the Organization review and update monthly and year-end financial reporting procedures and checklists as necessary, to assist in the preparation of financial records, and develop policies around document retention and storage to ensure supporting documentation can be readily located and accessed when needed. Management’s Response and Corrective Action Plan Management agrees with the finding. See schedule of corrective action.
Finding 2022-002
Finding 2022-002 U.S. Department of Health and Human Services Programs: 93.914 – HIV Emergency Relief Project Grants Type of Finding: Noncompliance and Significant Deficiency Compliance Requirement: Timely Submission of Reporting Package and Data Collection Form Repeat Finding: No Condition: The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 and was not submitted by that date. Criteria: In accordance with 2 CFR § 200.512, the audit must be completed and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Cause: The Organization experienced significant turnover in key management positions during fiscal year 2022. As a result, supporting documentation for financial transactions could not be located initially and were not readily available, which delayed the financial reporting process. Effect: Because of the late submission of the audit reports, the reporting package was not made available to users in a timely manner. Questioned Costs: None. Recommendation: We recommended that the Organization develop procedures to ensure that future reporting packages are submitted within the earlier of 30 days after receipt of the auditor’s reports, or nine months after the end of the audit period. We also recommend that the Organization ensure appropriate training, knowledge transfer, and succession planning within the organization to ensure that turnover in key management positions does not cause disruption to operations or financial reporting. Management’s Response and Corrective Action Plan Management agrees with the finding. See schedule of corrective action.
Finding 2022-001
Finding 2022-001 U.S. Department of Health and Human Services Programs: All Significant Deficiency over Financial Reporting Repeat Finding: No Condition: The Organization could not readily locate and provide supporting documentation for 2022 financial transactions. Criteria: Entities must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Entities must also maintain support for all financial transactions. Cause: The Organization experienced significant turnover in key management positions during fiscal year 2022. As a result, supporting documentation for financial transactions could not be located initially and were not readily available. Effect: Supporting documentation for financial transactions was not readily available for review which delayed the financial report process and the audit process, including late submission of the Single Audit. Questioned Costs: None. Recommendation: We recommend that the Organization ensure appropriate training, knowledge transfer, and succession planning within the organization to ensure that turnover in key management positions does not cause disruption to operations or financial reporting. We also recommend that the Organization review and update monthly and year-end financial reporting procedures and checklists as necessary, to assist in the preparation of financial records, and develop policies around document retention and storage to ensure supporting documentation can be readily located and accessed when needed. Management’s Response and Corrective Action Plan Management agrees with the finding. See schedule of corrective action.
Finding 2022-002
Finding 2022-002 U.S. Department of Health and Human Services Programs: 93.914 – HIV Emergency Relief Project Grants Type of Finding: Noncompliance and Significant Deficiency Compliance Requirement: Timely Submission of Reporting Package and Data Collection Form Repeat Finding: No Condition: The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 and was not submitted by that date. Criteria: In accordance with 2 CFR § 200.512, the audit must be completed and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Cause: The Organization experienced significant turnover in key management positions during fiscal year 2022. As a result, supporting documentation for financial transactions could not be located initially and were not readily available, which delayed the financial reporting process. Effect: Because of the late submission of the audit reports, the reporting package was not made available to users in a timely manner. Questioned Costs: None. Recommendation: We recommended that the Organization develop procedures to ensure that future reporting packages are submitted within the earlier of 30 days after receipt of the auditor’s reports, or nine months after the end of the audit period. We also recommend that the Organization ensure appropriate training, knowledge transfer, and succession planning within the organization to ensure that turnover in key management positions does not cause disruption to operations or financial reporting. Management’s Response and Corrective Action Plan Management agrees with the finding. See schedule of corrective action.