FAC Explorer

Audit 346362

FY End
2024-06-30
Total Expended
$34.97M
Findings
8
Programs
16
Organization: Audubon Area Community Services, Inc. (KY)
Year: 2024 Accepted: 2025-03-17
Auditor: Alexander & Company CPAS Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528306 2024-002 - - L
528307 2024-002 - - L
528308 2024-002 - - L
528309 2024-001 - Yes P
1104748 2024-002 - - L
1104749 2024-002 - - L
1104750 2024-002 - - L
1104751 2024-001 - Yes P

Programs

ALN Program Spent Major Findings
93.569 Community Services Block Grant $699,622 - 0
10.558 Child and Adult Care Food Program $656,761 - 0
93.472 Title IV-E Prevention Program $496,916 - 1
17.235 Senior Community Service Employment Program $332,226 - 0
94.016 Americorps Seniors Senior Companion Program (scp) 94.016 $326,356 - 0
93.600 Head Start $261,855 Yes 0
94.011 Americorps Seniors Foster Grandparent Program (fgp) 94.011 $209,882 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $163,270 - 0
93.568 Low-Income Home Energy Assistance $87,604 Yes 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $78,243 - 0
93.356 Head Start Disaster Recovery $64,865 Yes 0
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $32,899 - 0
93.558 Temporary Assistance for Needy Families $15,746 Yes 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $15,296 - 0
81.042 Weatherization Assistance for Low-Income Persons $10,815 - 0
94.013 Americorps Volunteers in Service to America 94.013 $5,000 - 0

Contacts

Name Title Type
C8VLDLBG3JK7 Byron Mayes Auditee
2706861600 Joe Keller Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION 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. De Minimis Rate Used: N Rate Explanation: Audubon Area Community Services, Inc., has a negotiated indirect rate and therefore does not use the 10% de minimis indirect cost rate. The indirect rate is approved by the U.S. Department of Health and Human Services (DHHS). As of June 30, 2024, Audubon Area Community Services, Inc. was using an approved provisional rate of 14.5%. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Audubon Area Community Services, Inc. under programs of the federal government for the year ended June 30, 2024. The information in 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). Because the Schedule presents only a selected portion of the operations of Audubon Area Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Audubon Area Community Services, Inc.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. De Minimis Rate Used: N Rate Explanation: Audubon Area Community Services, Inc., has a negotiated indirect rate and therefore does not use the 10% de minimis indirect cost rate. The indirect rate is approved by the U.S. Department of Health and Human Services (DHHS). As of June 30, 2024, Audubon Area Community Services, Inc. was using an approved provisional rate of 14.5%. 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.
Title: NOTE C – OTHER FEDERAL AWARDS 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. De Minimis Rate Used: N Rate Explanation: Audubon Area Community Services, Inc., has a negotiated indirect rate and therefore does not use the 10% de minimis indirect cost rate. The indirect rate is approved by the U.S. Department of Health and Human Services (DHHS). As of June 30, 2024, Audubon Area Community Services, Inc. was using an approved provisional rate of 14.5%. Audubon Area Community Services, Inc. did not receive any noncash insurance or have any loan or loan guarantees outstanding at the end of the year.
Title: NOTE D – INDIRECT COST RATE 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. De Minimis Rate Used: N Rate Explanation: Audubon Area Community Services, Inc., has a negotiated indirect rate and therefore does not use the 10% de minimis indirect cost rate. The indirect rate is approved by the U.S. Department of Health and Human Services (DHHS). As of June 30, 2024, Audubon Area Community Services, Inc. was using an approved provisional rate of 14.5%. Audubon Area Community Services, Inc., has a negotiated indirect rate and therefore does not use the 10% de minimis indirect cost rate. The indirect rate is approved by the U.S. Department of Health and Human Services (DHHS). As of June 30, 2024, Audubon Area Community Services, Inc. was using an approved provisional rate of 14.5%.

Finding Details

Finding 2024-002
Head Start Cluster: Assistance Listing No. #93.356 & 93.600 – Federal Financial Report (FFR) SF-425 Errors Condition: During our audit, we reviewed a sample of 12 Head Start’s FFRs. Audit procedures identified the following issues with our sample:  Contract #04CH012398-01 Semi-Annual FFR: The reported Total Recipient Share line I. was under-reported by $388,772.  Contract #04CH010730-05 Semi-Annual FFR: The reported Federal Expenditures line e. was under-reported by $1,358,053.  Contract #04HP000356-04 Final FFR: o Total Federal Share of Program Income line l. was over-reported by $49,403. o Program Income Expended in Accordance with Additional Alternative line n. was over-reported by $156,299. o Unexpended Program Income line o. was under-reported by $106,896. Criteria: FFRs should be completed accurately and reconciled to supporting documentation by both the preparer and reviewer. Cause: FFR line items were not agreed to supporting documentation. Effect: Filed reports were not accurate. There were no repercussions from the funding source to our knowledge. Recommendation: Personnel responsible for preparing and reviewing the FFRs should perform thorough reviews to ensure all line items reconcile to supporting documentation. Views of Responsible Officials and Planned
Finding 2024-002
Head Start Cluster: Assistance Listing No. #93.356 & 93.600 – Federal Financial Report (FFR) SF-425 Errors Condition: During our audit, we reviewed a sample of 12 Head Start’s FFRs. Audit procedures identified the following issues with our sample:  Contract #04CH012398-01 Semi-Annual FFR: The reported Total Recipient Share line I. was under-reported by $388,772.  Contract #04CH010730-05 Semi-Annual FFR: The reported Federal Expenditures line e. was under-reported by $1,358,053.  Contract #04HP000356-04 Final FFR: o Total Federal Share of Program Income line l. was over-reported by $49,403. o Program Income Expended in Accordance with Additional Alternative line n. was over-reported by $156,299. o Unexpended Program Income line o. was under-reported by $106,896. Criteria: FFRs should be completed accurately and reconciled to supporting documentation by both the preparer and reviewer. Cause: FFR line items were not agreed to supporting documentation. Effect: Filed reports were not accurate. There were no repercussions from the funding source to our knowledge. Recommendation: Personnel responsible for preparing and reviewing the FFRs should perform thorough reviews to ensure all line items reconcile to supporting documentation. Views of Responsible Officials and Planned
Finding 2024-002
Head Start Cluster: Assistance Listing No. #93.356 & 93.600 – Federal Financial Report (FFR) SF-425 Errors Condition: During our audit, we reviewed a sample of 12 Head Start’s FFRs. Audit procedures identified the following issues with our sample:  Contract #04CH012398-01 Semi-Annual FFR: The reported Total Recipient Share line I. was under-reported by $388,772.  Contract #04CH010730-05 Semi-Annual FFR: The reported Federal Expenditures line e. was under-reported by $1,358,053.  Contract #04HP000356-04 Final FFR: o Total Federal Share of Program Income line l. was over-reported by $49,403. o Program Income Expended in Accordance with Additional Alternative line n. was over-reported by $156,299. o Unexpended Program Income line o. was under-reported by $106,896. Criteria: FFRs should be completed accurately and reconciled to supporting documentation by both the preparer and reviewer. Cause: FFR line items were not agreed to supporting documentation. Effect: Filed reports were not accurate. There were no repercussions from the funding source to our knowledge. Recommendation: Personnel responsible for preparing and reviewing the FFRs should perform thorough reviews to ensure all line items reconcile to supporting documentation. Views of Responsible Officials and Planned
Finding 2024-001
Schedule of Expenditures of Federal Awards (SEFA) Not Accurately Reported Condition: Federal expenditures were over reported on the SEFA due to state expenditures being classified as federal expenditures, specifically related to its funding agreement with the Commonwealth of Kentucky Contract PON2 736- 2200002279. Criteria: The SEFA should only include federal expenditures as required by the Uniform Guidance. Cause: The Organization has a funding agreement with the Commonwealth of Kentucky (Contract PON2 736-2200002279), under this funding agreement, the Organization was expected to receive 85% from federal sources and 15% from state sources. As such, the Organization allocated the total expenditures incurred under the contract in accordance with the funding agreement. Effect: The SEFA over reported federal expenditures by $581,771. Recommendation: We recommend management review their policies and procedures over SEFA preparation to ensure sufficient internal controls are implemented. In circumstances where there is any uncertainty regarding the source of the funds (for example, funding agreements with multiple sources), the Organization should contact the related agency and confirm the sources of the funding to verify the amounts reported on the SEFA are accurately presented. Views of Responsible Officials and Planned Corrective Action: As part of its processes and procedures to prepare the SEFA, management will contact the funding source to verify the source of the funds to ensure the accuracy of reported federal expenditures. Additionally, for the specific funding agreement, management will reach out to the related funding source to communicate the discrepancy.
Finding 2024-002
Head Start Cluster: Assistance Listing No. #93.356 & 93.600 – Federal Financial Report (FFR) SF-425 Errors Condition: During our audit, we reviewed a sample of 12 Head Start’s FFRs. Audit procedures identified the following issues with our sample:  Contract #04CH012398-01 Semi-Annual FFR: The reported Total Recipient Share line I. was under-reported by $388,772.  Contract #04CH010730-05 Semi-Annual FFR: The reported Federal Expenditures line e. was under-reported by $1,358,053.  Contract #04HP000356-04 Final FFR: o Total Federal Share of Program Income line l. was over-reported by $49,403. o Program Income Expended in Accordance with Additional Alternative line n. was over-reported by $156,299. o Unexpended Program Income line o. was under-reported by $106,896. Criteria: FFRs should be completed accurately and reconciled to supporting documentation by both the preparer and reviewer. Cause: FFR line items were not agreed to supporting documentation. Effect: Filed reports were not accurate. There were no repercussions from the funding source to our knowledge. Recommendation: Personnel responsible for preparing and reviewing the FFRs should perform thorough reviews to ensure all line items reconcile to supporting documentation. Views of Responsible Officials and Planned
Finding 2024-002
Head Start Cluster: Assistance Listing No. #93.356 & 93.600 – Federal Financial Report (FFR) SF-425 Errors Condition: During our audit, we reviewed a sample of 12 Head Start’s FFRs. Audit procedures identified the following issues with our sample:  Contract #04CH012398-01 Semi-Annual FFR: The reported Total Recipient Share line I. was under-reported by $388,772.  Contract #04CH010730-05 Semi-Annual FFR: The reported Federal Expenditures line e. was under-reported by $1,358,053.  Contract #04HP000356-04 Final FFR: o Total Federal Share of Program Income line l. was over-reported by $49,403. o Program Income Expended in Accordance with Additional Alternative line n. was over-reported by $156,299. o Unexpended Program Income line o. was under-reported by $106,896. Criteria: FFRs should be completed accurately and reconciled to supporting documentation by both the preparer and reviewer. Cause: FFR line items were not agreed to supporting documentation. Effect: Filed reports were not accurate. There were no repercussions from the funding source to our knowledge. Recommendation: Personnel responsible for preparing and reviewing the FFRs should perform thorough reviews to ensure all line items reconcile to supporting documentation. Views of Responsible Officials and Planned
Finding 2024-002
Head Start Cluster: Assistance Listing No. #93.356 & 93.600 – Federal Financial Report (FFR) SF-425 Errors Condition: During our audit, we reviewed a sample of 12 Head Start’s FFRs. Audit procedures identified the following issues with our sample:  Contract #04CH012398-01 Semi-Annual FFR: The reported Total Recipient Share line I. was under-reported by $388,772.  Contract #04CH010730-05 Semi-Annual FFR: The reported Federal Expenditures line e. was under-reported by $1,358,053.  Contract #04HP000356-04 Final FFR: o Total Federal Share of Program Income line l. was over-reported by $49,403. o Program Income Expended in Accordance with Additional Alternative line n. was over-reported by $156,299. o Unexpended Program Income line o. was under-reported by $106,896. Criteria: FFRs should be completed accurately and reconciled to supporting documentation by both the preparer and reviewer. Cause: FFR line items were not agreed to supporting documentation. Effect: Filed reports were not accurate. There were no repercussions from the funding source to our knowledge. Recommendation: Personnel responsible for preparing and reviewing the FFRs should perform thorough reviews to ensure all line items reconcile to supporting documentation. Views of Responsible Officials and Planned
Finding 2024-001
Schedule of Expenditures of Federal Awards (SEFA) Not Accurately Reported Condition: Federal expenditures were over reported on the SEFA due to state expenditures being classified as federal expenditures, specifically related to its funding agreement with the Commonwealth of Kentucky Contract PON2 736- 2200002279. Criteria: The SEFA should only include federal expenditures as required by the Uniform Guidance. Cause: The Organization has a funding agreement with the Commonwealth of Kentucky (Contract PON2 736-2200002279), under this funding agreement, the Organization was expected to receive 85% from federal sources and 15% from state sources. As such, the Organization allocated the total expenditures incurred under the contract in accordance with the funding agreement. Effect: The SEFA over reported federal expenditures by $581,771. Recommendation: We recommend management review their policies and procedures over SEFA preparation to ensure sufficient internal controls are implemented. In circumstances where there is any uncertainty regarding the source of the funds (for example, funding agreements with multiple sources), the Organization should contact the related agency and confirm the sources of the funding to verify the amounts reported on the SEFA are accurately presented. Views of Responsible Officials and Planned Corrective Action: As part of its processes and procedures to prepare the SEFA, management will contact the funding source to verify the source of the funds to ensure the accuracy of reported federal expenditures. Additionally, for the specific funding agreement, management will reach out to the related funding source to communicate the discrepancy.