FAC Explorer

Audit 342174

FY End
2023-06-30
Total Expended
$4.33M
Findings
2
Programs
2
Organization: The Order of Fishermen Ministry Head Start Program, Inc. (MI)
Year: 2023 Accepted: 2025-02-12
Auditor: Alan C Young & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522805 2023-003 Material Weakness - A
1099247 2023-003 Material Weakness - A

Programs

ALN Program Spent Major Findings
93.600 Head Start $4.33M Yes 1
10.558 Child and Adult Care Food Program $628 - 0

Contacts

Name Title Type
WLE5XMWN3PG1 Walter Frye Auditee
3139330300 James Wilde Auditor
No contacts on file

Notes to SEFA

Title: SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Order of the Fishermen Ministry Head Start Program, Inc. (the Agency) and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the schedule are recognized following the federal cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed 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 selected portion of the operations of the Agency, it is not intended to and does De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Order of the Fishermen Ministry Head Start Program, Inc. (the Agency) and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the schedule are recognized following the federal cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed 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 selected portion of the operations of the Agency, it is not intended to and does not present the financial position, change in net position or cash flows of the Agency.
Title: MAJOR PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Order of the Fishermen Ministry Head Start Program, Inc. (the Agency) and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the schedule are recognized following the federal cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed 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 selected portion of the operations of the Agency, it is not intended to and does De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Major programs have been determined in accordance with the requirements of OMB Uniform Guidance.
Title: INDIRECT COST RATES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Order of the Fishermen Ministry Head Start Program, Inc. (the Agency) and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the schedule are recognized following the federal cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed 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 selected portion of the operations of the Agency, it is not intended to and does De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Agency has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: SUBSEQUENT EVENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Order of the Fishermen Ministry Head Start Program, Inc. (the Agency) and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). In addition, expenditures reported on the schedule are recognized following the federal cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed 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 selected portion of the operations of the Agency, it is not intended to and does De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Agency has evaluated all subsequent events through January 23, 2025, the date the financial statements were available to be issued. No significant subsequent event was noted that required adjustment or disclosure in the financial statements.

Finding Details

Finding 2023-003
Program Name – Head Start and Early Head Start Assistance Listing Number – 93.600 Finding Type – Material Weakness and Noncompliance Criteria – Amounts drawn down from federal grants should be based on actual expenditures incurred. Any costs allocated to the grant should be based on a reasonable and appropriate allocation methodology. Condition – We noted certain grants were drawn or billed in excess of actual expenses incurred. Questioned Costs – $51,664 Identification of a Repeat Finding – This is not a repeat finding from the prior year audit. Cause/Effect – Documented program expenses were less than the Federal funds received. Recommendation – We recommend that the Agency reconcile the federal expenditures timely and make adjustments to future draws as and when necessary. View of Responsible Officials and Corrective Action Plan – TOFMHS concurs with the finding. The excess drawdowns were the result of accounting entries to record refunds, or other adjustments which reduced previously allowable expenses. Subsequent drawdowns should have been reduced to offset these adjustments. TOFMHS will implement ACF-IM-HS-23-01 (Treatment of Rebates, Refunds, Discounts), and prevent a recurrence of this issue in the future. TOFMHS returned the $51,664 to the Payment Management System on January 16, 2025 in accordance with the referenced Information Memorandum. Drawdowns will be based upo
Finding 2023-003
Program Name – Head Start and Early Head Start Assistance Listing Number – 93.600 Finding Type – Material Weakness and Noncompliance Criteria – Amounts drawn down from federal grants should be based on actual expenditures incurred. Any costs allocated to the grant should be based on a reasonable and appropriate allocation methodology. Condition – We noted certain grants were drawn or billed in excess of actual expenses incurred. Questioned Costs – $51,664 Identification of a Repeat Finding – This is not a repeat finding from the prior year audit. Cause/Effect – Documented program expenses were less than the Federal funds received. Recommendation – We recommend that the Agency reconcile the federal expenditures timely and make adjustments to future draws as and when necessary. View of Responsible Officials and Corrective Action Plan – TOFMHS concurs with the finding. The excess drawdowns were the result of accounting entries to record refunds, or other adjustments which reduced previously allowable expenses. Subsequent drawdowns should have been reduced to offset these adjustments. TOFMHS will implement ACF-IM-HS-23-01 (Treatment of Rebates, Refunds, Discounts), and prevent a recurrence of this issue in the future. TOFMHS returned the $51,664 to the Payment Management System on January 16, 2025 in accordance with the referenced Information Memorandum. Drawdowns will be based upo