FAC Explorer

Audit 342131

FY End
2024-06-30
Total Expended
$4.71M
Findings
6
Programs
8
Organization: Mary Hall Freedom Village, Inc. (GA)
Year: 2024 Accepted: 2025-02-12
Auditor: Smith & Howard

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522752 2024-002 Significant Deficiency - AB
522753 2024-002 Significant Deficiency - AB
522754 2024-002 Significant Deficiency - AB
1099194 2024-002 Significant Deficiency - AB
1099195 2024-002 Significant Deficiency - AB
1099196 2024-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.667 Social Services Block Grant $955,885 Yes 1
93.558 Temporary Assistance for Needy Families $874,800 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $610,844 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $607,244 Yes 1
14.267 Continuum of Care Program $295,182 - 0
64.024 Va Homeless Providers Grant and Per Diem Program $210,697 - 0
93.669 Child Abuse and Neglect State Grants $202,039 - 0
14.241 Housing Opportunities for Persons with Aids $96,506 - 0

Contacts

Name Title Type
J2X5HKUAWZH2 Adam Rose Auditee
7706425500 Kimberly Bland Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (“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. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is the same basis of accounting as the financial statements. 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: Entity did not use the de minimis cost rate (a) Basis of Presentation The accompanying schedule of expenditures of federal awards (“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. (b) Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting which is the same basis of accounting as the financial statements. 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.
Title: NOTE 2 – PROGRAM COSTS Accounting Policies: The accompanying schedule of expenditures of federal awards (“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. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is the same basis of accounting as the financial statements. 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: Entity did not use the de minimis cost rate Expenditures reported on the Schedule represent only the federal grant portion of the program costs. Entire program costs, including the Organization’s portion, may be more than shown. Organization records should be consulted to determine amounts expended or matched from non-federal sources.
Title: NOTE 3 – INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards (“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. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is the same basis of accounting as the financial statements. 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: Entity did not use the de minimis cost rate The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Program cost is based on direct cost of expenses specifically associated with the programs.

Finding Details

Finding 2024-002
Allowable Costs/Activities Allowed – Approval of Invoices Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number: 93.959 and Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Social Services Block Grant Assistance Listing Number: 93.667 Type of Finding: Significant Deficiency over Internal Control over Compliance. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal awards that provides assurance that the entity is managing the federal awards in compliance with federal statutes, regulations and conditions of the federal awards. Condition: During our testing, we noted invoices that lacked proper review documentation. Context: Of the 50 selections we tested across both major federal programs, we noted 23 did not have evidence of review and approval. Effect: Costs could be charged to federal programs which are unallowed due to lack of review by appropriate personnel. The Organization also had turnover in the accounting department. Cause: The Organization did not follow its fiscal policies and procedures on obtaining invoice approval. Recommendation: Management should ensure it is following its fiscal policies and procedures on invoice approval. Grantee Comment: Refer to Corrective Action Plan
Finding 2024-002
Allowable Costs/Activities Allowed – Approval of Invoices Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number: 93.959 and Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Social Services Block Grant Assistance Listing Number: 93.667 Type of Finding: Significant Deficiency over Internal Control over Compliance. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal awards that provides assurance that the entity is managing the federal awards in compliance with federal statutes, regulations and conditions of the federal awards. Condition: During our testing, we noted invoices that lacked proper review documentation. Context: Of the 50 selections we tested across both major federal programs, we noted 23 did not have evidence of review and approval. Effect: Costs could be charged to federal programs which are unallowed due to lack of review by appropriate personnel. The Organization also had turnover in the accounting department. Cause: The Organization did not follow its fiscal policies and procedures on obtaining invoice approval. Recommendation: Management should ensure it is following its fiscal policies and procedures on invoice approval. Grantee Comment: Refer to Corrective Action Plan
Finding 2024-002
Allowable Costs/Activities Allowed – Approval of Invoices Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number: 93.959 and Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Social Services Block Grant Assistance Listing Number: 93.667 Type of Finding: Significant Deficiency over Internal Control over Compliance. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal awards that provides assurance that the entity is managing the federal awards in compliance with federal statutes, regulations and conditions of the federal awards. Condition: During our testing, we noted invoices that lacked proper review documentation. Context: Of the 50 selections we tested across both major federal programs, we noted 23 did not have evidence of review and approval. Effect: Costs could be charged to federal programs which are unallowed due to lack of review by appropriate personnel. The Organization also had turnover in the accounting department. Cause: The Organization did not follow its fiscal policies and procedures on obtaining invoice approval. Recommendation: Management should ensure it is following its fiscal policies and procedures on invoice approval. Grantee Comment: Refer to Corrective Action Plan
Finding 2024-002
Allowable Costs/Activities Allowed – Approval of Invoices Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number: 93.959 and Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Social Services Block Grant Assistance Listing Number: 93.667 Type of Finding: Significant Deficiency over Internal Control over Compliance. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal awards that provides assurance that the entity is managing the federal awards in compliance with federal statutes, regulations and conditions of the federal awards. Condition: During our testing, we noted invoices that lacked proper review documentation. Context: Of the 50 selections we tested across both major federal programs, we noted 23 did not have evidence of review and approval. Effect: Costs could be charged to federal programs which are unallowed due to lack of review by appropriate personnel. The Organization also had turnover in the accounting department. Cause: The Organization did not follow its fiscal policies and procedures on obtaining invoice approval. Recommendation: Management should ensure it is following its fiscal policies and procedures on invoice approval. Grantee Comment: Refer to Corrective Action Plan
Finding 2024-002
Allowable Costs/Activities Allowed – Approval of Invoices Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number: 93.959 and Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Social Services Block Grant Assistance Listing Number: 93.667 Type of Finding: Significant Deficiency over Internal Control over Compliance. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal awards that provides assurance that the entity is managing the federal awards in compliance with federal statutes, regulations and conditions of the federal awards. Condition: During our testing, we noted invoices that lacked proper review documentation. Context: Of the 50 selections we tested across both major federal programs, we noted 23 did not have evidence of review and approval. Effect: Costs could be charged to federal programs which are unallowed due to lack of review by appropriate personnel. The Organization also had turnover in the accounting department. Cause: The Organization did not follow its fiscal policies and procedures on obtaining invoice approval. Recommendation: Management should ensure it is following its fiscal policies and procedures on invoice approval. Grantee Comment: Refer to Corrective Action Plan
Finding 2024-002
Allowable Costs/Activities Allowed – Approval of Invoices Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number: 93.959 and Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Social Services Block Grant Assistance Listing Number: 93.667 Type of Finding: Significant Deficiency over Internal Control over Compliance. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal awards that provides assurance that the entity is managing the federal awards in compliance with federal statutes, regulations and conditions of the federal awards. Condition: During our testing, we noted invoices that lacked proper review documentation. Context: Of the 50 selections we tested across both major federal programs, we noted 23 did not have evidence of review and approval. Effect: Costs could be charged to federal programs which are unallowed due to lack of review by appropriate personnel. The Organization also had turnover in the accounting department. Cause: The Organization did not follow its fiscal policies and procedures on obtaining invoice approval. Recommendation: Management should ensure it is following its fiscal policies and procedures on invoice approval. Grantee Comment: Refer to Corrective Action Plan