Audit 344229

FY End
2024-06-30
Total Expended
$2.56M
Findings
10
Programs
6
Organization: Family Voices (MA)
Year: 2024 Accepted: 2025-02-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
524862 2024-001 Significant Deficiency - B
524863 2024-001 Significant Deficiency - B
524864 2024-001 Significant Deficiency - B
524865 2024-001 Significant Deficiency - B
524866 2024-001 Significant Deficiency - B
1101304 2024-001 Significant Deficiency - B
1101305 2024-001 Significant Deficiency - B
1101306 2024-001 Significant Deficiency - B
1101307 2024-001 Significant Deficiency - B
1101308 2024-001 Significant Deficiency - B

Contacts

Name Title Type
M732GD9X1RG9 Smythe Kannapell Auditee
7816747224 Alex Gurule Auditor
No contacts on file

Notes to SEFA

Title: Basis of Accounting Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of all federal programs of Family Voices, reporting entity as described in Note 1 to the financial statements. All federal awards received from federal agencies are included in the schedule in accordance with the requirement 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 Family Voices, it is not intended to and does not present the financial position, changes in net position or cash flows of Family Voices. De Minimis Rate Used: Both Rate Explanation: Family Voices has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance from 7/1/2023-4/30/2024. Family Voices entered into a nonprofit rate agreement with the federal government on June 28, 2024 with a rate of 12% effective from 5/1/2024-06/30/2024. The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting, which is described in Note 2 to the financial statements.
Title: Reconciliation of Schedule of Expenditures of Federal Awards to the Financial Statements Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of all federal programs of Family Voices, reporting entity as described in Note 1 to the financial statements. All federal awards received from federal agencies are included in the schedule in accordance with the requirement 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 Family Voices, it is not intended to and does not present the financial position, changes in net position or cash flows of Family Voices. De Minimis Rate Used: Both Rate Explanation: Family Voices has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance from 7/1/2023-4/30/2024. Family Voices entered into a nonprofit rate agreement with the federal government on June 28, 2024 with a rate of 12% effective from 5/1/2024-06/30/2024. The following is a reconciliation of the expenditures reported on the schedule of expenditures of federal awards to the expenditures reported in the financial statements:
Title: Payments to Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of all federal programs of Family Voices, reporting entity as described in Note 1 to the financial statements. All federal awards received from federal agencies are included in the schedule in accordance with the requirement 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 Family Voices, it is not intended to and does not present the financial position, changes in net position or cash flows of Family Voices. De Minimis Rate Used: Both Rate Explanation: Family Voices has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance from 7/1/2023-4/30/2024. Family Voices entered into a nonprofit rate agreement with the federal government on June 28, 2024 with a rate of 12% effective from 5/1/2024-06/30/2024. amily Voices made the following payments to subrecipients during the year ended June 30, 2024:

Finding Details

Criteria: Under the Uniform Guidance requirements, to be allowable under Federal awards, costs must meet the following criteria: 1) Necessary and reasonable, 2) Consistent with policies and procedures, 3) Accorded consistent treatment and 4) Adequately documented. Under the grant requirements, time and attendance records must be maintained for salaries charged to the award and must specify the project and be of sufficient detail to substantiate the claimed percentage of work performed in support of the project. Condition: During our testing of payroll expenditures, we noted Family Voices has appropriate procedures in place to record an accurate estimate of allocated time charged to the major program and to compare actual hours incurred working on the program to the initial estimate recorded. However, management did not retain proper documentation to substantiate the initial estimate recorded in comparison to the actual hours incurred, including management’s determination that the estimate is reasonable. Questioned Costs: None Context: Fourteen of fourteen payroll transactions reviewed did not have proper documentation. Cause and Effect: Payroll expenditures are allocated to the program based on estimates derived from program employees in advance. The accounting department and the program directors meet to review the estimated time recorded at month end and adjust expenditures charged to the program based on actual work performed on the project. Supporting documentation was available, however, it did not support the estimate to actual comparison.Auditors’ Recommendation: Establish payroll procedures to ensure transactions are allocated based on actual hours worked on the program and all expenditures charged to the program have adequate supporting documentation. Management Response: The Organization in the years prior to Fiscal Year End 2023 were employing a time and attendance system that was in accordance with allowable cost grant requirements, however, the process was unduly burdensome on the organizations employees and the former finance director elected to change the process from attestation of hours worked to the noted allocation of available funding. In realizing that this method was not supporting the compliance of allowable cost grant requirements, efforts were begun to revisit the salary allocation methods.
Criteria: Under the Uniform Guidance requirements, to be allowable under Federal awards, costs must meet the following criteria: 1) Necessary and reasonable, 2) Consistent with policies and procedures, 3) Accorded consistent treatment and 4) Adequately documented. Under the grant requirements, time and attendance records must be maintained for salaries charged to the award and must specify the project and be of sufficient detail to substantiate the claimed percentage of work performed in support of the project. Condition: During our testing of payroll expenditures, we noted Family Voices has appropriate procedures in place to record an accurate estimate of allocated time charged to the major program and to compare actual hours incurred working on the program to the initial estimate recorded. However, management did not retain proper documentation to substantiate the initial estimate recorded in comparison to the actual hours incurred, including management’s determination that the estimate is reasonable. Questioned Costs: None Context: Fourteen of fourteen payroll transactions reviewed did not have proper documentation. Cause and Effect: Payroll expenditures are allocated to the program based on estimates derived from program employees in advance. The accounting department and the program directors meet to review the estimated time recorded at month end and adjust expenditures charged to the program based on actual work performed on the project. Supporting documentation was available, however, it did not support the estimate to actual comparison.Auditors’ Recommendation: Establish payroll procedures to ensure transactions are allocated based on actual hours worked on the program and all expenditures charged to the program have adequate supporting documentation. Management Response: The Organization in the years prior to Fiscal Year End 2023 were employing a time and attendance system that was in accordance with allowable cost grant requirements, however, the process was unduly burdensome on the organizations employees and the former finance director elected to change the process from attestation of hours worked to the noted allocation of available funding. In realizing that this method was not supporting the compliance of allowable cost grant requirements, efforts were begun to revisit the salary allocation methods.
Criteria: Under the Uniform Guidance requirements, to be allowable under Federal awards, costs must meet the following criteria: 1) Necessary and reasonable, 2) Consistent with policies and procedures, 3) Accorded consistent treatment and 4) Adequately documented. Under the grant requirements, time and attendance records must be maintained for salaries charged to the award and must specify the project and be of sufficient detail to substantiate the claimed percentage of work performed in support of the project. Condition: During our testing of payroll expenditures, we noted Family Voices has appropriate procedures in place to record an accurate estimate of allocated time charged to the major program and to compare actual hours incurred working on the program to the initial estimate recorded. However, management did not retain proper documentation to substantiate the initial estimate recorded in comparison to the actual hours incurred, including management’s determination that the estimate is reasonable. Questioned Costs: None Context: Fourteen of fourteen payroll transactions reviewed did not have proper documentation. Cause and Effect: Payroll expenditures are allocated to the program based on estimates derived from program employees in advance. The accounting department and the program directors meet to review the estimated time recorded at month end and adjust expenditures charged to the program based on actual work performed on the project. Supporting documentation was available, however, it did not support the estimate to actual comparison.Auditors’ Recommendation: Establish payroll procedures to ensure transactions are allocated based on actual hours worked on the program and all expenditures charged to the program have adequate supporting documentation. Management Response: The Organization in the years prior to Fiscal Year End 2023 were employing a time and attendance system that was in accordance with allowable cost grant requirements, however, the process was unduly burdensome on the organizations employees and the former finance director elected to change the process from attestation of hours worked to the noted allocation of available funding. In realizing that this method was not supporting the compliance of allowable cost grant requirements, efforts were begun to revisit the salary allocation methods.
Criteria: Under the Uniform Guidance requirements, to be allowable under Federal awards, costs must meet the following criteria: 1) Necessary and reasonable, 2) Consistent with policies and procedures, 3) Accorded consistent treatment and 4) Adequately documented. Under the grant requirements, time and attendance records must be maintained for salaries charged to the award and must specify the project and be of sufficient detail to substantiate the claimed percentage of work performed in support of the project. Condition: During our testing of payroll expenditures, we noted Family Voices has appropriate procedures in place to record an accurate estimate of allocated time charged to the major program and to compare actual hours incurred working on the program to the initial estimate recorded. However, management did not retain proper documentation to substantiate the initial estimate recorded in comparison to the actual hours incurred, including management’s determination that the estimate is reasonable. Questioned Costs: None Context: Fourteen of fourteen payroll transactions reviewed did not have proper documentation. Cause and Effect: Payroll expenditures are allocated to the program based on estimates derived from program employees in advance. The accounting department and the program directors meet to review the estimated time recorded at month end and adjust expenditures charged to the program based on actual work performed on the project. Supporting documentation was available, however, it did not support the estimate to actual comparison.Auditors’ Recommendation: Establish payroll procedures to ensure transactions are allocated based on actual hours worked on the program and all expenditures charged to the program have adequate supporting documentation. Management Response: The Organization in the years prior to Fiscal Year End 2023 were employing a time and attendance system that was in accordance with allowable cost grant requirements, however, the process was unduly burdensome on the organizations employees and the former finance director elected to change the process from attestation of hours worked to the noted allocation of available funding. In realizing that this method was not supporting the compliance of allowable cost grant requirements, efforts were begun to revisit the salary allocation methods.
Criteria: Under the Uniform Guidance requirements, to be allowable under Federal awards, costs must meet the following criteria: 1) Necessary and reasonable, 2) Consistent with policies and procedures, 3) Accorded consistent treatment and 4) Adequately documented. Under the grant requirements, time and attendance records must be maintained for salaries charged to the award and must specify the project and be of sufficient detail to substantiate the claimed percentage of work performed in support of the project. Condition: During our testing of payroll expenditures, we noted Family Voices has appropriate procedures in place to record an accurate estimate of allocated time charged to the major program and to compare actual hours incurred working on the program to the initial estimate recorded. However, management did not retain proper documentation to substantiate the initial estimate recorded in comparison to the actual hours incurred, including management’s determination that the estimate is reasonable. Questioned Costs: None Context: Fourteen of fourteen payroll transactions reviewed did not have proper documentation. Cause and Effect: Payroll expenditures are allocated to the program based on estimates derived from program employees in advance. The accounting department and the program directors meet to review the estimated time recorded at month end and adjust expenditures charged to the program based on actual work performed on the project. Supporting documentation was available, however, it did not support the estimate to actual comparison.Auditors’ Recommendation: Establish payroll procedures to ensure transactions are allocated based on actual hours worked on the program and all expenditures charged to the program have adequate supporting documentation. Management Response: The Organization in the years prior to Fiscal Year End 2023 were employing a time and attendance system that was in accordance with allowable cost grant requirements, however, the process was unduly burdensome on the organizations employees and the former finance director elected to change the process from attestation of hours worked to the noted allocation of available funding. In realizing that this method was not supporting the compliance of allowable cost grant requirements, efforts were begun to revisit the salary allocation methods.
Criteria: Under the Uniform Guidance requirements, to be allowable under Federal awards, costs must meet the following criteria: 1) Necessary and reasonable, 2) Consistent with policies and procedures, 3) Accorded consistent treatment and 4) Adequately documented. Under the grant requirements, time and attendance records must be maintained for salaries charged to the award and must specify the project and be of sufficient detail to substantiate the claimed percentage of work performed in support of the project. Condition: During our testing of payroll expenditures, we noted Family Voices has appropriate procedures in place to record an accurate estimate of allocated time charged to the major program and to compare actual hours incurred working on the program to the initial estimate recorded. However, management did not retain proper documentation to substantiate the initial estimate recorded in comparison to the actual hours incurred, including management’s determination that the estimate is reasonable. Questioned Costs: None Context: Fourteen of fourteen payroll transactions reviewed did not have proper documentation. Cause and Effect: Payroll expenditures are allocated to the program based on estimates derived from program employees in advance. The accounting department and the program directors meet to review the estimated time recorded at month end and adjust expenditures charged to the program based on actual work performed on the project. Supporting documentation was available, however, it did not support the estimate to actual comparison.Auditors’ Recommendation: Establish payroll procedures to ensure transactions are allocated based on actual hours worked on the program and all expenditures charged to the program have adequate supporting documentation. Management Response: The Organization in the years prior to Fiscal Year End 2023 were employing a time and attendance system that was in accordance with allowable cost grant requirements, however, the process was unduly burdensome on the organizations employees and the former finance director elected to change the process from attestation of hours worked to the noted allocation of available funding. In realizing that this method was not supporting the compliance of allowable cost grant requirements, efforts were begun to revisit the salary allocation methods.
Criteria: Under the Uniform Guidance requirements, to be allowable under Federal awards, costs must meet the following criteria: 1) Necessary and reasonable, 2) Consistent with policies and procedures, 3) Accorded consistent treatment and 4) Adequately documented. Under the grant requirements, time and attendance records must be maintained for salaries charged to the award and must specify the project and be of sufficient detail to substantiate the claimed percentage of work performed in support of the project. Condition: During our testing of payroll expenditures, we noted Family Voices has appropriate procedures in place to record an accurate estimate of allocated time charged to the major program and to compare actual hours incurred working on the program to the initial estimate recorded. However, management did not retain proper documentation to substantiate the initial estimate recorded in comparison to the actual hours incurred, including management’s determination that the estimate is reasonable. Questioned Costs: None Context: Fourteen of fourteen payroll transactions reviewed did not have proper documentation. Cause and Effect: Payroll expenditures are allocated to the program based on estimates derived from program employees in advance. The accounting department and the program directors meet to review the estimated time recorded at month end and adjust expenditures charged to the program based on actual work performed on the project. Supporting documentation was available, however, it did not support the estimate to actual comparison.Auditors’ Recommendation: Establish payroll procedures to ensure transactions are allocated based on actual hours worked on the program and all expenditures charged to the program have adequate supporting documentation. Management Response: The Organization in the years prior to Fiscal Year End 2023 were employing a time and attendance system that was in accordance with allowable cost grant requirements, however, the process was unduly burdensome on the organizations employees and the former finance director elected to change the process from attestation of hours worked to the noted allocation of available funding. In realizing that this method was not supporting the compliance of allowable cost grant requirements, efforts were begun to revisit the salary allocation methods.
Criteria: Under the Uniform Guidance requirements, to be allowable under Federal awards, costs must meet the following criteria: 1) Necessary and reasonable, 2) Consistent with policies and procedures, 3) Accorded consistent treatment and 4) Adequately documented. Under the grant requirements, time and attendance records must be maintained for salaries charged to the award and must specify the project and be of sufficient detail to substantiate the claimed percentage of work performed in support of the project. Condition: During our testing of payroll expenditures, we noted Family Voices has appropriate procedures in place to record an accurate estimate of allocated time charged to the major program and to compare actual hours incurred working on the program to the initial estimate recorded. However, management did not retain proper documentation to substantiate the initial estimate recorded in comparison to the actual hours incurred, including management’s determination that the estimate is reasonable. Questioned Costs: None Context: Fourteen of fourteen payroll transactions reviewed did not have proper documentation. Cause and Effect: Payroll expenditures are allocated to the program based on estimates derived from program employees in advance. The accounting department and the program directors meet to review the estimated time recorded at month end and adjust expenditures charged to the program based on actual work performed on the project. Supporting documentation was available, however, it did not support the estimate to actual comparison.Auditors’ Recommendation: Establish payroll procedures to ensure transactions are allocated based on actual hours worked on the program and all expenditures charged to the program have adequate supporting documentation. Management Response: The Organization in the years prior to Fiscal Year End 2023 were employing a time and attendance system that was in accordance with allowable cost grant requirements, however, the process was unduly burdensome on the organizations employees and the former finance director elected to change the process from attestation of hours worked to the noted allocation of available funding. In realizing that this method was not supporting the compliance of allowable cost grant requirements, efforts were begun to revisit the salary allocation methods.
Criteria: Under the Uniform Guidance requirements, to be allowable under Federal awards, costs must meet the following criteria: 1) Necessary and reasonable, 2) Consistent with policies and procedures, 3) Accorded consistent treatment and 4) Adequately documented. Under the grant requirements, time and attendance records must be maintained for salaries charged to the award and must specify the project and be of sufficient detail to substantiate the claimed percentage of work performed in support of the project. Condition: During our testing of payroll expenditures, we noted Family Voices has appropriate procedures in place to record an accurate estimate of allocated time charged to the major program and to compare actual hours incurred working on the program to the initial estimate recorded. However, management did not retain proper documentation to substantiate the initial estimate recorded in comparison to the actual hours incurred, including management’s determination that the estimate is reasonable. Questioned Costs: None Context: Fourteen of fourteen payroll transactions reviewed did not have proper documentation. Cause and Effect: Payroll expenditures are allocated to the program based on estimates derived from program employees in advance. The accounting department and the program directors meet to review the estimated time recorded at month end and adjust expenditures charged to the program based on actual work performed on the project. Supporting documentation was available, however, it did not support the estimate to actual comparison.Auditors’ Recommendation: Establish payroll procedures to ensure transactions are allocated based on actual hours worked on the program and all expenditures charged to the program have adequate supporting documentation. Management Response: The Organization in the years prior to Fiscal Year End 2023 were employing a time and attendance system that was in accordance with allowable cost grant requirements, however, the process was unduly burdensome on the organizations employees and the former finance director elected to change the process from attestation of hours worked to the noted allocation of available funding. In realizing that this method was not supporting the compliance of allowable cost grant requirements, efforts were begun to revisit the salary allocation methods.
Criteria: Under the Uniform Guidance requirements, to be allowable under Federal awards, costs must meet the following criteria: 1) Necessary and reasonable, 2) Consistent with policies and procedures, 3) Accorded consistent treatment and 4) Adequately documented. Under the grant requirements, time and attendance records must be maintained for salaries charged to the award and must specify the project and be of sufficient detail to substantiate the claimed percentage of work performed in support of the project. Condition: During our testing of payroll expenditures, we noted Family Voices has appropriate procedures in place to record an accurate estimate of allocated time charged to the major program and to compare actual hours incurred working on the program to the initial estimate recorded. However, management did not retain proper documentation to substantiate the initial estimate recorded in comparison to the actual hours incurred, including management’s determination that the estimate is reasonable. Questioned Costs: None Context: Fourteen of fourteen payroll transactions reviewed did not have proper documentation. Cause and Effect: Payroll expenditures are allocated to the program based on estimates derived from program employees in advance. The accounting department and the program directors meet to review the estimated time recorded at month end and adjust expenditures charged to the program based on actual work performed on the project. Supporting documentation was available, however, it did not support the estimate to actual comparison.Auditors’ Recommendation: Establish payroll procedures to ensure transactions are allocated based on actual hours worked on the program and all expenditures charged to the program have adequate supporting documentation. Management Response: The Organization in the years prior to Fiscal Year End 2023 were employing a time and attendance system that was in accordance with allowable cost grant requirements, however, the process was unduly burdensome on the organizations employees and the former finance director elected to change the process from attestation of hours worked to the noted allocation of available funding. In realizing that this method was not supporting the compliance of allowable cost grant requirements, efforts were begun to revisit the salary allocation methods.