FAC Explorer

Audit 34305

FY End
2022-12-31
Total Expended
$1.27M
Findings
2
Programs
4
Organization: Homeboy Industries (CA)
Year: 2022 Accepted: 2023-09-28
Auditor: Green Hasson & Janks LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38578 2022-002 Material Weakness - ABH
615020 2022-002 Material Weakness - ABH

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $589,466 Yes 1
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $319,492 - 0
97.024 Emergency Food and Shelter National Board Program $155,070 - 0
17.270 Reintegration of Ex-Offenders $30,958 - 0

Contacts

Name Title Type
XEWZHNUTSVL4 Gilbert Muro Auditee
5623516644 Yulia Murzaeva Auditor
No contacts on file

Notes to SEFA

Title: Awards to Subrecipients Accounting Policies: Basis of Accounting - The Consolidated Schedule of Expenditures of Federal (Schedule) includes the federal grant activities of Homeboy Industries and has been reported on the accrual basis of accounting. The information on 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the presentation of the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: Homeboy Industries has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Homeboy Industries has not provided any Federal awards to subrecipients from the federal expenditures presented in the Schedule.
Title: Loan Program Accounting Policies: Basis of Accounting - The Consolidated Schedule of Expenditures of Federal (Schedule) includes the federal grant activities of Homeboy Industries and has been reported on the accrual basis of accounting. The information on 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the presentation of the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: Homeboy Industries has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The balance outstanding on the CDBG-Entitlement Grants Cluster loan program totaled $354,672 at December 31, 2022.

Finding Details

Finding 2022-002
Criteria: U.S. Code of Federal Regulations, Title 2, Part 200, section 510(b) Schedule of Expenditures of Federal Awards requires recipients of federal awards to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee?s financial statements to accurately reflect federal awards expended for individual federal programs during the auditee?s fiscal year. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Condition: For the Community Development Block Grant Program for Entitlement Communities (CDBG) (Assistance Listing Number 14.218), the grant was erroneously identified as a city (or local government) grant and therefore, total expenditures of $589,466 incurred during the year were not initially properly identified and reported on the SEFA. Cause: Homeboy Industries was initially unaware that the funds granted by the City of Los Angeles were pass-through federal funds. Effect or Potential Effect: As a result, until the SEFA was corrected, it did not report the complete activity under the loan program for the year ended December 31, 2022. Questioned Costs: N/A. Recommendation: Homeboy Industries should establish a thorough internal review process to ensure amounts reported on the SEFA represent complete and accurate expenditures incurred in the applicable fiscal year. Repeat Finding: Not Applicable
Finding 2022-002
Criteria: U.S. Code of Federal Regulations, Title 2, Part 200, section 510(b) Schedule of Expenditures of Federal Awards requires recipients of federal awards to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee?s financial statements to accurately reflect federal awards expended for individual federal programs during the auditee?s fiscal year. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Condition: For the Community Development Block Grant Program for Entitlement Communities (CDBG) (Assistance Listing Number 14.218), the grant was erroneously identified as a city (or local government) grant and therefore, total expenditures of $589,466 incurred during the year were not initially properly identified and reported on the SEFA. Cause: Homeboy Industries was initially unaware that the funds granted by the City of Los Angeles were pass-through federal funds. Effect or Potential Effect: As a result, until the SEFA was corrected, it did not report the complete activity under the loan program for the year ended December 31, 2022. Questioned Costs: N/A. Recommendation: Homeboy Industries should establish a thorough internal review process to ensure amounts reported on the SEFA represent complete and accurate expenditures incurred in the applicable fiscal year. Repeat Finding: Not Applicable