Audit 332173

FY End

2024-06-30

Total Expended

$4.42M

Findings

2

Programs

5

Organization: Steppingstone, Inc. and Affiliate (MA)

Year: 2024 Accepted: 2024-12-12

Auditor: Kelly Vitale Raffol LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
513968	2024-001	Significant Deficiency	-	L
1090410	2024-001	Significant Deficiency	-	L

ALN	Program	Spent	Major	Findings
93.243	Substance Abuse and Mental Health Services Projects of Regional and National Significance	$2.19M	Yes	1
14.267	Continuum of Care Program	$837,333	-	0
14.231	Emergency Solutions Grant Program	$437,990	-	0
16.838	Comprehensive Opioid, Stimulant, and Other Substances Use Program	$410,569	-	0
93.959	Block Grants for Prevention and Treatment of Substance Abuse	$196,020	-	0

Contacts

Name	Title	Type
FF83WRGB7UB4	Rosa Lopes	Auditee
5086742788	Robert Marquart	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 the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. De Minimis Rate Used: N Rate Explanation: The Organization has an approved indirect cost rate by the cognizant agency. The accompanying schedule of expenditures of federal awards (“the Schedule”) includes the federal grant activity of the Organization 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 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 the Organization it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Organization.

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 the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. De Minimis Rate Used: N Rate Explanation: The Organization has an approved indirect cost rate by the cognizant agency. (a) 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, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. (b) Pass-through entity identifying numbers are presented where available.

Title: Note 3. 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 the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. De Minimis Rate Used: N Rate Explanation: The Organization has an approved indirect cost rate by the cognizant agency. The following program cluster, as defined by the Uniform Guidance, was treated as a single program for determining major programs: U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services (SAMHSA) 93.243

Title: Note 4. 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 the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. De Minimis Rate Used: N Rate Explanation: The Organization has an approved indirect cost rate by the cognizant agency. The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

Section II Findings – Financial Statement Audit: No findings were noted for the year ended June 30, 2024. Section III Findings and Questioned Costs – Major Federal Award Programs Audit. 2024-001 Significant Deficiency in Internal Control over compliance related to reporting the Federal Audit Clearinghouse Data Collection Form (FAC). Federal Program: US Department of Health and Human Services Substance Abuse and Mental Health Services Administration. Contract No. 6H79TI084079-02M002 AL Number 93.243. Criteria: 2 CFR 200.512 (a) requires recipients expending $750,000 or more in Federal awards during the fiscal year to submit the FAC and reporting package within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The Federal Audit Clearinghouse Data Collection form was not filed for the fiscal year ended June 30, 2023 within the time period described above in accordance with 2 CFR 200.512 (a). Cause: The FAC Data Collection filing website was subject to significant changes which unfamiliar to the Organization. In particular, the website used to notify the Organization and the auditee via email that signatures were required. This procedure has ceased. It is now incumbent on the auditor to notify the auditee of the auditor certification. The responsibility for the final filing then transfers to the auditee. Effect: Noncompliance with 2 CFR 200.512 (a), could impair future funding. The Organization did not comply with the timeliness component of the reporting requirements as a result of the change in the filing procedures. Repeat: This is not a repeat finding. Recommendation: Once this was done the Organization was clear on the newly updated procedures for filing. Our recommendation is to document the process in the accounting policy and procedure manual. Views of Responsible Officials: Management agrees and has incorporated this procedure into the accounting manual. Corrective Action Plan: (unaudited); We agree with the recommendation and have updated the accounting manual. It should also be noted that the Organization has never filed late and has only had this happen once in the history of the Organization which is concurrent with the change in the Federal Audit Clearinghouse website update. Summarized Schedule of Prior Year Findings:Section II Findings – Financial Statement Audit: No findings were noted for the year ended June 30, 2023. Section III Findings and Questioned Costs – Major Federal Award Programs Audit: No findings were noted for the year ended June 30, 2023.

Finding 2024-001

Section II Findings – Financial Statement Audit: No findings were noted for the year ended June 30, 2024. Section III Findings and Questioned Costs – Major Federal Award Programs Audit. 2024-001 Significant Deficiency in Internal Control over compliance related to reporting the Federal Audit Clearinghouse Data Collection Form (FAC). Federal Program: US Department of Health and Human Services Substance Abuse and Mental Health Services Administration. Contract No. 6H79TI084079-02M002 AL Number 93.243. Criteria: 2 CFR 200.512 (a) requires recipients expending $750,000 or more in Federal awards during the fiscal year to submit the FAC and reporting package within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The Federal Audit Clearinghouse Data Collection form was not filed for the fiscal year ended June 30, 2023 within the time period described above in accordance with 2 CFR 200.512 (a). Cause: The FAC Data Collection filing website was subject to significant changes which unfamiliar to the Organization. In particular, the website used to notify the Organization and the auditee via email that signatures were required. This procedure has ceased. It is now incumbent on the auditor to notify the auditee of the auditor certification. The responsibility for the final filing then transfers to the auditee. Effect: Noncompliance with 2 CFR 200.512 (a), could impair future funding. The Organization did not comply with the timeliness component of the reporting requirements as a result of the change in the filing procedures. Repeat: This is not a repeat finding. Recommendation: Once this was done the Organization was clear on the newly updated procedures for filing. Our recommendation is to document the process in the accounting policy and procedure manual. Views of Responsible Officials: Management agrees and has incorporated this procedure into the accounting manual. Corrective Action Plan: (unaudited); We agree with the recommendation and have updated the accounting manual. It should also be noted that the Organization has never filed late and has only had this happen once in the history of the Organization which is concurrent with the change in the Federal Audit Clearinghouse website update. Summarized Schedule of Prior Year Findings:Section II Findings – Financial Statement Audit: No findings were noted for the year ended June 30, 2023. Section III Findings and Questioned Costs – Major Federal Award Programs Audit: No findings were noted for the year ended June 30, 2023.