Audit 341419

FY End
2024-06-30
Total Expended
$1.45M
Findings
2
Programs
5
Organization: Hibiscus Childrens Center, Inc. (FL)
Year: 2024 Accepted: 2025-02-06

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
522208 2024-001 Significant Deficiency - N
1098650 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
93.556 Promoting Safe and Stable Families $544,700 Yes 0
93.658 Foster Care - Title IV-E $543,952 Yes 1
93.870 Maternal, Infant, and Early Childhood Home Visiting Grant Program $210,121 - 0
16.575 Victim of Crimes Act $155,636 - 0
93.667 Social Services Block Grant $534 Yes 0

Contacts

Name Title Type
QAYERXPR3KU8 Susanne Ferguson Auditee
7723349311 Mindy Howes Auditor
No contacts on file

Notes to SEFA

Title: Note A – Basis of Presentation Accounting Policies: Note A – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance (the schedules) includes the federal grant and state award activity of Hibiscus Children’s Center, Inc. (Hibiscus) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Audits of States, Local Governments, and Non-Profit Organizations, Chapter 10.650, and Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. For purposes of the Schedules, federal awards and state financial assistance include all grants, contracts, and similar agreements entered into directly with the federal or state government and other pass-through entities. Hibiscus has obtained Catalog of Federal Domestic assistance (CFDA) numbers and Catalog of State Financial Assistance (CSFA) numbers to ensure that all programs have been identified in the schedules. Note B – Basis of Accounting The Schedules were prepared on the accrual basis of accounting. Note C – Contingency Amounts received or receivable from grantor agencies are subject to audit and adjustment by those agencies. Any disallowed claims, including amounts already received, might constitute a liability of Hibiscus for the return of those funds. Note D – Indirect Cost Rate Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note E – Subrecipients Hibiscus has not provided any funds to subrecipients. Note F – Other Disclosures The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance includes federal and state expenditures awarded by more than one pass-through agency or under more than one contract. De Minimis Rate Used: N Rate Explanation: Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance (the schedules) includes the federal grant and state award activity of Hibiscus Children’s Center, Inc. (Hibiscus) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Audits of States, Local Governments, and Non-Profit Organizations, Chapter 10.650, and Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. For purposes of the Schedules, federal awards and state financial assistance include all grants, contracts, and similar agreements entered into directly with the federal or state government and other pass-through entities. Hibiscus has obtained Catalog of Federal Domestic assistance (CFDA) numbers and Catalog of State Financial Assistance (CSFA) numbers to ensure that all programs have been identified in the schedules.
Title: Note B – Basis of Accounting Accounting Policies: Note A – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance (the schedules) includes the federal grant and state award activity of Hibiscus Children’s Center, Inc. (Hibiscus) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Audits of States, Local Governments, and Non-Profit Organizations, Chapter 10.650, and Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. For purposes of the Schedules, federal awards and state financial assistance include all grants, contracts, and similar agreements entered into directly with the federal or state government and other pass-through entities. Hibiscus has obtained Catalog of Federal Domestic assistance (CFDA) numbers and Catalog of State Financial Assistance (CSFA) numbers to ensure that all programs have been identified in the schedules. Note B – Basis of Accounting The Schedules were prepared on the accrual basis of accounting. Note C – Contingency Amounts received or receivable from grantor agencies are subject to audit and adjustment by those agencies. Any disallowed claims, including amounts already received, might constitute a liability of Hibiscus for the return of those funds. Note D – Indirect Cost Rate Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note E – Subrecipients Hibiscus has not provided any funds to subrecipients. Note F – Other Disclosures The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance includes federal and state expenditures awarded by more than one pass-through agency or under more than one contract. De Minimis Rate Used: N Rate Explanation: Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Schedules were prepared on the accrual basis of accounting.
Title: Note C – Contingency Accounting Policies: Note A – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance (the schedules) includes the federal grant and state award activity of Hibiscus Children’s Center, Inc. (Hibiscus) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Audits of States, Local Governments, and Non-Profit Organizations, Chapter 10.650, and Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. For purposes of the Schedules, federal awards and state financial assistance include all grants, contracts, and similar agreements entered into directly with the federal or state government and other pass-through entities. Hibiscus has obtained Catalog of Federal Domestic assistance (CFDA) numbers and Catalog of State Financial Assistance (CSFA) numbers to ensure that all programs have been identified in the schedules. Note B – Basis of Accounting The Schedules were prepared on the accrual basis of accounting. Note C – Contingency Amounts received or receivable from grantor agencies are subject to audit and adjustment by those agencies. Any disallowed claims, including amounts already received, might constitute a liability of Hibiscus for the return of those funds. Note D – Indirect Cost Rate Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note E – Subrecipients Hibiscus has not provided any funds to subrecipients. Note F – Other Disclosures The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance includes federal and state expenditures awarded by more than one pass-through agency or under more than one contract. De Minimis Rate Used: N Rate Explanation: Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Amounts received or receivable from grantor agencies are subject to audit and adjustment by those agencies. Any disallowed claims, including amounts already received, might constitute a liability of Hibiscus for the return of those funds.
Title: Note D – Indirect Cost Rate Accounting Policies: Note A – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance (the schedules) includes the federal grant and state award activity of Hibiscus Children’s Center, Inc. (Hibiscus) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Audits of States, Local Governments, and Non-Profit Organizations, Chapter 10.650, and Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. For purposes of the Schedules, federal awards and state financial assistance include all grants, contracts, and similar agreements entered into directly with the federal or state government and other pass-through entities. Hibiscus has obtained Catalog of Federal Domestic assistance (CFDA) numbers and Catalog of State Financial Assistance (CSFA) numbers to ensure that all programs have been identified in the schedules. Note B – Basis of Accounting The Schedules were prepared on the accrual basis of accounting. Note C – Contingency Amounts received or receivable from grantor agencies are subject to audit and adjustment by those agencies. Any disallowed claims, including amounts already received, might constitute a liability of Hibiscus for the return of those funds. Note D – Indirect Cost Rate Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note E – Subrecipients Hibiscus has not provided any funds to subrecipients. Note F – Other Disclosures The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance includes federal and state expenditures awarded by more than one pass-through agency or under more than one contract. De Minimis Rate Used: N Rate Explanation: Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note E – Subrecipients Accounting Policies: Note A – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance (the schedules) includes the federal grant and state award activity of Hibiscus Children’s Center, Inc. (Hibiscus) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Audits of States, Local Governments, and Non-Profit Organizations, Chapter 10.650, and Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. For purposes of the Schedules, federal awards and state financial assistance include all grants, contracts, and similar agreements entered into directly with the federal or state government and other pass-through entities. Hibiscus has obtained Catalog of Federal Domestic assistance (CFDA) numbers and Catalog of State Financial Assistance (CSFA) numbers to ensure that all programs have been identified in the schedules. Note B – Basis of Accounting The Schedules were prepared on the accrual basis of accounting. Note C – Contingency Amounts received or receivable from grantor agencies are subject to audit and adjustment by those agencies. Any disallowed claims, including amounts already received, might constitute a liability of Hibiscus for the return of those funds. Note D – Indirect Cost Rate Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note E – Subrecipients Hibiscus has not provided any funds to subrecipients. Note F – Other Disclosures The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance includes federal and state expenditures awarded by more than one pass-through agency or under more than one contract. De Minimis Rate Used: N Rate Explanation: Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Hibiscus has not provided any funds to subrecipients.
Title: Note F – Other Disclosures Accounting Policies: Note A – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance (the schedules) includes the federal grant and state award activity of Hibiscus Children’s Center, Inc. (Hibiscus) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Audits of States, Local Governments, and Non-Profit Organizations, Chapter 10.650, and Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. For purposes of the Schedules, federal awards and state financial assistance include all grants, contracts, and similar agreements entered into directly with the federal or state government and other pass-through entities. Hibiscus has obtained Catalog of Federal Domestic assistance (CFDA) numbers and Catalog of State Financial Assistance (CSFA) numbers to ensure that all programs have been identified in the schedules. Note B – Basis of Accounting The Schedules were prepared on the accrual basis of accounting. Note C – Contingency Amounts received or receivable from grantor agencies are subject to audit and adjustment by those agencies. Any disallowed claims, including amounts already received, might constitute a liability of Hibiscus for the return of those funds. Note D – Indirect Cost Rate Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note E – Subrecipients Hibiscus has not provided any funds to subrecipients. Note F – Other Disclosures The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance includes federal and state expenditures awarded by more than one pass-through agency or under more than one contract. De Minimis Rate Used: N Rate Explanation: Hibiscus has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Financial Assistance includes federal and state expenditures awarded by more than one pass-through agency or under more than one contract.

Finding Details

Criteria: 2 CFR 200.303 states a non-Federal entity must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our audit, auditors tested 25 employees for completion certificate of required training as a condition of the grants. Three of the required annual training were significantly non-compliant. • The Annual HIPPA Training 23 of the 25 (92%) of employees did not properly complete the training. • The Annual Security Awareness Training 4 of the 25 (16%) of employees did not properly complete the training. • The Annual Service Delivery for Deaf and Hard of Hearing Training 15 of the 25 (60%) of employees did not properly complete the training. Questioned Costs: No questioned costs were noted. Cause: The cause of this condition appears to be a lack of oversight in monitoring training completion records and insufficient internal controls over training compliance. Effect: Failure to properly complete required training increases the risk of noncompliance with federal program requirements, potentially leading to disallowed costs, penalties, or other adverse consequences.Recommendation: We recommend that management, enhance internal controls over training compliance by implementing more effective tracking and monitoring system and assign responsibility for ensuring timely completion of required training to a specific individual or department. Additionally, we recommend Hibiscus consider implementing a rolling-year training schedule rather than an annual hire-date renewal process. This approach can streamline tracking, reduce administrative burdens, and ensure consistent compliance by aligning training requirements with a standard cycle applicable to all employees.
Criteria: 2 CFR 200.303 states a non-Federal entity must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our audit, auditors tested 25 employees for completion certificate of required training as a condition of the grants. Three of the required annual training were significantly non-compliant. • The Annual HIPPA Training 23 of the 25 (92%) of employees did not properly complete the training. • The Annual Security Awareness Training 4 of the 25 (16%) of employees did not properly complete the training. • The Annual Service Delivery for Deaf and Hard of Hearing Training 15 of the 25 (60%) of employees did not properly complete the training. Questioned Costs: No questioned costs were noted. Cause: The cause of this condition appears to be a lack of oversight in monitoring training completion records and insufficient internal controls over training compliance. Effect: Failure to properly complete required training increases the risk of noncompliance with federal program requirements, potentially leading to disallowed costs, penalties, or other adverse consequences.Recommendation: We recommend that management, enhance internal controls over training compliance by implementing more effective tracking and monitoring system and assign responsibility for ensuring timely completion of required training to a specific individual or department. Additionally, we recommend Hibiscus consider implementing a rolling-year training schedule rather than an annual hire-date renewal process. This approach can streamline tracking, reduce administrative burdens, and ensure consistent compliance by aligning training requirements with a standard cycle applicable to all employees.