FAC Explorer

Audit 340750

FY End
2024-06-30
Total Expended
$1.88M
Findings
2
Programs
1
Organization: Rainbow Fleet, Inc. (OK)
Year: 2024 Accepted: 2025-01-31
Auditor: Hspg & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
520888 2024-001 Significant Deficiency - P
1097330 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $1.88M Yes 1

Contacts

Name Title Type
F695C4U4MLA7 Matt Cordray Auditee
4054926847 Matt Cole Auditor
No contacts on file

Notes to SEFA

Title: 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 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 RECEIVES A FORMULA-BASED ADMINISTRATIVE FEE ASSOCIATED WITH SERVICES PROVIDED IN ACCORDANCE WITH THE GRANT AGREEMENT. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Rainbow Fleet, Inc. (“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. All federal awards passed through other government agencies are included on the Schedule.
Title: 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 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 RECEIVES A FORMULA-BASED ADMINISTRATIVE FEE ASSOCIATED WITH SERVICES PROVIDED IN ACCORDANCE WITH THE GRANT AGREEMENT. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: indirect cost rates 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 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 RECEIVES A FORMULA-BASED ADMINISTRATIVE FEE ASSOCIATED WITH SERVICES PROVIDED IN ACCORDANCE WITH THE GRANT AGREEMENT. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Condition: The Organization did not submit the Single Audit report for the fiscal year ended June 30, 2023 to the Federal Audit Clearinghouse (FAC) within the required nine-month deadline. The report was due on March 31, 2024, but was submitted on August 27, 2024, resulting in a delay of 148 days beyond the required deadline. Criteria: According to 2 CFR Part 200, Uniform Guidance (§200.512), non-federal entities that expend $750,000 or more in federal awards during a fiscal year are required to submit the data collection form and reporting package to the FAC within the earlier of 30 days after receiving the auditor’s report or nine months after the end of the fiscal year. Cause: The delay was due to a turnover in key personnel. Effect: The failure to submit the audit report within the required time frame is a violation of federal compliance requirements. Late submission may impact the auditee’s eligibility for future federal awards and could result in increased scrutiny by federal awarding agencies. Recommendation: We recommend that management implement processes to ensure timely completion and submission of the Single Audit report in future years. This could include setting internal deadlines, increasing oversight, and coordinating with the audit firm to identify and address potential delays earlier in the audit process. Views of Responsible Officials of Auditee: Management agrees with the finding and will take steps to improve the timeliness of the audit process. Specifically, management hired a new Chief Operating Officer and Chief Executive Officer who have been notified of the reporting requirements of the federal awards.
Finding 2024-001
Condition: The Organization did not submit the Single Audit report for the fiscal year ended June 30, 2023 to the Federal Audit Clearinghouse (FAC) within the required nine-month deadline. The report was due on March 31, 2024, but was submitted on August 27, 2024, resulting in a delay of 148 days beyond the required deadline. Criteria: According to 2 CFR Part 200, Uniform Guidance (§200.512), non-federal entities that expend $750,000 or more in federal awards during a fiscal year are required to submit the data collection form and reporting package to the FAC within the earlier of 30 days after receiving the auditor’s report or nine months after the end of the fiscal year. Cause: The delay was due to a turnover in key personnel. Effect: The failure to submit the audit report within the required time frame is a violation of federal compliance requirements. Late submission may impact the auditee’s eligibility for future federal awards and could result in increased scrutiny by federal awarding agencies. Recommendation: We recommend that management implement processes to ensure timely completion and submission of the Single Audit report in future years. This could include setting internal deadlines, increasing oversight, and coordinating with the audit firm to identify and address potential delays earlier in the audit process. Views of Responsible Officials of Auditee: Management agrees with the finding and will take steps to improve the timeliness of the audit process. Specifically, management hired a new Chief Operating Officer and Chief Executive Officer who have been notified of the reporting requirements of the federal awards.