Audit 345049

FY End
2024-06-30
Total Expended
$2.35M
Findings
2
Programs
2
Organization: The House of Hope, Inc. (FL)
Year: 2024 Accepted: 2025-03-06

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
525913 2024-001 Material Weakness Yes ABCGHLM
1102355 2024-001 Material Weakness Yes ABCGHLM

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $2.23M Yes 1
93.788 Opioid Str $124,996 - 0

Contacts

Name Title Type
DC9MX1CEFH53 Sue Glasscock Auditee
9545248989 Martha G. Parker Auditor
No contacts on file

Notes to SEFA

Title: 1 Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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, as applicable. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedules of expenditures of federal awards, other state funding and local financial assistance include the grant activity of The House of Hope, Inc. (the “Organization”) under programs of the federal, state and local government for the year ended June 30, 2024. The information in the schedule of expenditures of federal awards (the “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 (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 position, or cash flows of the Organization.
Title: 2 Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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, as applicable. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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, as applicable.
Title: 3 Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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, as applicable. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Management Response: We acknowledge that the finding identified in the 2023 audit has repeated in the 2024 audit, and we recognize the importance of fully addressing these concerns to ensure more accurate and efficient financial procedures moving forward. We have since successfully hired a qualified staff accountant who is now in place and working diligently to ensure compliance with all financial procedures for the fiscal year 2025. This key hire, along with the enhanced and fully implemented month-end checklist, will help us consistently meet the necessary financial reporting standards.
Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Management Response: We acknowledge that the finding identified in the 2023 audit has repeated in the 2024 audit, and we recognize the importance of fully addressing these concerns to ensure more accurate and efficient financial procedures moving forward. We have since successfully hired a qualified staff accountant who is now in place and working diligently to ensure compliance with all financial procedures for the fiscal year 2025. This key hire, along with the enhanced and fully implemented month-end checklist, will help us consistently meet the necessary financial reporting standards.