FAC Explorer

Audit 33845

FY End
2022-12-31
Total Expended
$1.36M
Findings
2
Programs
1
Organization: Leadership Foundations (WA)
Year: 2022 Accepted: 2023-09-27
Auditor: Johnson Stone & Pagano Ps

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33547 2022-001 Significant Deficiency - A
609989 2022-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
16.726 Juvenile Mentoring Program $1.36M Yes 1

Contacts

Name Title Type
H477TNBLGUD6 Larry Lloyd Auditee
9014120157 Craig Catlin Auditor
No contacts on file

Notes to SEFA

Title: Note 3 - Subawards Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes thefederal award activity of Leadership Foundations under programs of the federal government forthe year ended December 31, 2022. The information in this Schedule is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations ("CFR") Part 200, UniformAdministrative Requirements, Cost Principles and Audit Requirements for Federal Awards("Uniform Guidance"). Because the Schedule presents only a selected portion of the operationsof Leadership Foundations, it is not intended to, and does not, present the financial position,statement of activities or cash flows of Leadership Foundations.Expenditures reported on the Schedule are reported on the accrual basis ofaccounting. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Leadership Foundations has elected to not use the 10 percent de minimis indirectcost rate as allowed under the Uniform Guidance. Leadership Foundations passed through federal awards under ALN #16.726 to the following subrecipients: See notes to SEFA for chart/table.

Finding Details

Finding 2022-001
Criteria Purchases and commitments to purchase during the grant period should be for expenses for the grant period. Condition Purchases at the end of the grant period were for items not obtained or utilized by the organization until after the grant period. Context Software was ordered September 29th, 2022, the last day of the grant period. The software continuation license, support, and one year benefit of use for the organization did not commence until November 1, 2022. Cause The organization interpreted a decision to make a prepaid purchase for an asset to be used after the grant period to be acceptable use of funds. Effect The grant expenditures were overstated by $36,400. The grant was improperly billed for the purchase and reimbursed. A payable to the grantor was not recorded, and grant revenue was overstated by the improperly billed and reimbursed amount. The prepaid asset was not recognized. Auditor's Recommendations We recommend that the organization utilize grant funding for expenditures in accordance with the requirements of the grant, keeping in mind accrual-based accounting standards for expenses related to the grant period.
Finding 2022-001
Criteria Purchases and commitments to purchase during the grant period should be for expenses for the grant period. Condition Purchases at the end of the grant period were for items not obtained or utilized by the organization until after the grant period. Context Software was ordered September 29th, 2022, the last day of the grant period. The software continuation license, support, and one year benefit of use for the organization did not commence until November 1, 2022. Cause The organization interpreted a decision to make a prepaid purchase for an asset to be used after the grant period to be acceptable use of funds. Effect The grant expenditures were overstated by $36,400. The grant was improperly billed for the purchase and reimbursed. A payable to the grantor was not recorded, and grant revenue was overstated by the improperly billed and reimbursed amount. The prepaid asset was not recognized. Auditor's Recommendations We recommend that the organization utilize grant funding for expenditures in accordance with the requirements of the grant, keeping in mind accrual-based accounting standards for expenses related to the grant period.