Audit 341411

FY End
2024-06-30
Total Expended
$11.43M
Findings
2
Programs
5
Year: 2024 Accepted: 2025-02-06

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
522207 2024-006 Material Weakness - ABELMN
1098649 2024-006 Material Weakness - ABELMN

Programs

ALN Program Spent Major Findings
93.658 Foster Care Title IV-E $11.12M Yes 1
10.555 National School Lunch Program $180,424 - 0
10.553 School Breakfast Program $93,579 - 0
93.667 Social Services Block Grant $31,067 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $12,189 - 0

Contacts

Name Title Type
LMVRAM763JM7 Gerald Savo Auditee
7244589330 Sean Kocan Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: The schedule of expenditures of federal and state awards is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ form amounts presented in or used in the preparation of the financial statements. The amounts reported in this schedule as expenditures may differ from certain reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. General Information: The supplementary schedule of expenditures of federal and state awards presents the activities of all the federal and state financial assistance programs of George Junior Republic in Pennsylvania. All financial assistance received directly from federal and state agencies as well as financial assistance passed through other governmental agencies or not-for-profit organizations are included on the schedule. Basis of Accounting: The supplementary schedule of expenditures of federal and state awards is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
Title: NOTE B - ALLOCATION OF EXPENDITURES Accounting Policies: The schedule of expenditures of federal and state awards is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ form amounts presented in or used in the preparation of the financial statements. The amounts reported in this schedule as expenditures may differ from certain reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the year, funds are received from the various counties on a reimbursement basis based on census data and approved billing rates and are not identified by Assistance Listing number. At year end, these counties provide the Organization with revenue information by Assistance Listing number. Consequently, for purposes of the schedule of expenditures of federal and state awards, expenditures were allocated to the various counties based on revenue received. Below is a summary of the counties that provided the Organization with revenue by Assistance Listing number. See the Notes to the Schedule of Expenditures of Federal and State Awards for chart/table. The counties did not provide revenue information by Assistance Listing number for revenues totaling $10,743,839 for the year ended June 30, 2024. Therefore, revenue totaling $10,743,839 was assumed to be federal monies and included in Assistance Listing Program No. 93.658 for the purpose of the schedule of expenditures of federal and state awards.
Title: NOTE C - IDENTIFYING NUMBER ASSIGNED BY PASS-THROUGH ENTITIES Accounting Policies: The schedule of expenditures of federal and state awards is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ form amounts presented in or used in the preparation of the financial statements. The amounts reported in this schedule as expenditures may differ from certain reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Uniform Guidance requires that the identifying number assigned by pass-through entities be included on the schedule of expenditures of federal and state awards. The counties do not assign an identifying number to their contracts with the Organization. Therefore, there is no identifying number included on the schedule of expenditures of federal and state awards.
Title: NOTE D - FOOD DISTRIBUTION Accounting Policies: The schedule of expenditures of federal and state awards is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ form amounts presented in or used in the preparation of the financial statements. The amounts reported in this schedule as expenditures may differ from certain reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule of expenditures of federal and state awards at the fair market value of the commodities received and disbursed.
Title: NOTE E - INDIRECT COST RATE Accounting Policies: The schedule of expenditures of federal and state awards is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ form amounts presented in or used in the preparation of the financial statements. The amounts reported in this schedule as expenditures may differ from certain reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. George Junior Republic in Pennsylvania has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE F - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The schedule of expenditures of federal and state awards is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ form amounts presented in or used in the preparation of the financial statements. The amounts reported in this schedule as expenditures may differ from certain reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a select 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.

Finding Details

Finding 2024-00􀀙 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Health and Human Services Federal Program Name: Foster Care Title IV-E Assistance Listing Number: 93.658 Pass-Through Agency: Pennsylvania Department of Human Services Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements. The schedule must include the total federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, the Organization receives funding from various counties across the state of Pennsylvania which consists of commingled federal, state, and local assistance with contract terms that stipulate it is the contractor’s responsibility to solicit the counties for purposes of determining the source of funding provided. Condition and Context: The expenditures included on the schedule of expenditures of federal awards (Schedule) initially prepared by the Organization included expenditures of state and local assistance. Questioned Costs: $-0- Cause: The Organization did not perform their responsibilities under the contract terms, which state it is their responsibility to solicit the counties for purposes of determining the source of funding provided during the fiscal year. Additionally, the Organization did not have adequate policies and procedures in place for accurately determining the breakdown of the commingled assistance received. Effect: The Schedule prepared by the Organization did not accurately present the federal awards expended during the fiscal year. Repeat finding: No Recommendation: We recommend the following: 􀁸 The Organization should establish policies and procedures to understand and ensure compliance with the Organization’s contractual obligations. 􀁸 The Organization should create and implement procedures to timely and accurately determine the source of funding received through various county contracts. 􀁸 The Organization should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-00􀀙 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Health and Human Services Federal Program Name: Foster Care Title IV-E Assistance Listing Number: 93.658 Pass-Through Agency: Pennsylvania Department of Human Services Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements. The schedule must include the total federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, the Organization receives funding from various counties across the state of Pennsylvania which consists of commingled federal, state, and local assistance with contract terms that stipulate it is the contractor’s responsibility to solicit the counties for purposes of determining the source of funding provided. Condition and Context: The expenditures included on the schedule of expenditures of federal awards (Schedule) initially prepared by the Organization included expenditures of state and local assistance. Questioned Costs: $-0- Cause: The Organization did not perform their responsibilities under the contract terms, which state it is their responsibility to solicit the counties for purposes of determining the source of funding provided during the fiscal year. Additionally, the Organization did not have adequate policies and procedures in place for accurately determining the breakdown of the commingled assistance received. Effect: The Schedule prepared by the Organization did not accurately present the federal awards expended during the fiscal year. Repeat finding: No Recommendation: We recommend the following: 􀁸 The Organization should establish policies and procedures to understand and ensure compliance with the Organization’s contractual obligations. 􀁸 The Organization should create and implement procedures to timely and accurately determine the source of funding received through various county contracts. 􀁸 The Organization should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.