FAC Explorer

Audit 346925

FY End
2024-06-30
Total Expended
$1.20M
Findings
12
Programs
2
Organization: Interfaith Works, Inc. (MD)
Year: 2024 Accepted: 2025-03-19
Auditor: Gelman Rosenberg & Freedman

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528937 2024-001 Significant Deficiency - L
528938 2024-002 Significant Deficiency - B
528939 2024-001 Significant Deficiency - L
528940 2024-002 Significant Deficiency - B
528941 2024-001 Significant Deficiency - L
528942 2024-001 Significant Deficiency - L
1105379 2024-001 Significant Deficiency - L
1105380 2024-002 Significant Deficiency - B
1105381 2024-001 Significant Deficiency - L
1105382 2024-002 Significant Deficiency - B
1105383 2024-001 Significant Deficiency - L
1105384 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $489,932 Yes 2
93.958 Block Grants for Community Mental Health Services $10,130 - 1

Contacts

Name Title Type
E9S5HBLG2BG6 Courtney Hall Auditee
3017628682 Susan Colladay Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: 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. IW has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. For the awards from the U.S. Department of Housing and Urban Development, IW used an indirect rate that approximated 9.9% as allowed by the approved budgets related to each grant awarded under ALN 14.267. For the awards from the U.S. Department of Health and Human Services, IW used an indirect rate of 11.26% and a fringe rate of 15.71% during the year ended June 30, 2024. These indirect and fringe rates were provided by Montgomery County Maryland Department of Health and Human Services. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of Interfaith Works, Inc. (IW) under programs of the Federal Government for the year ended June 30, 2024. Information in 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). The Schedule presents only a selected portion of the operations of IW and, accordingly, it is not intended to and does not present the financial position, changes in net assets or cash flows of IW.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: 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. IW has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. For the awards from the U.S. Department of Housing and Urban Development, IW used an indirect rate that approximated 9.9% as allowed by the approved budgets related to each grant awarded under ALN 14.267. For the awards from the U.S. Department of Health and Human Services, IW used an indirect rate of 11.26% and a fringe rate of 15.71% during the year ended June 30, 2024. These indirect and fringe rates were provided by Montgomery County Maryland Department of Health and Human Services. 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. IW has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. For the awards from the U.S. Department of Housing and Urban Development, IW used an indirect rate that approximated 9.9% as allowed by the approved budgets related to each grant awarded under ALN 14.267. For the awards from the U.S. Department of Health and Human Services, IW used an indirect rate of 11.26% and a fringe rate of 15.71% during the year ended June 30, 2024. These indirect and fringe rates were provided by Montgomery County Maryland Department of Health and Human Services.
Title: Note 3. Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: 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. IW has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. For the awards from the U.S. Department of Housing and Urban Development, IW used an indirect rate that approximated 9.9% as allowed by the approved budgets related to each grant awarded under ALN 14.267. For the awards from the U.S. Department of Health and Human Services, IW used an indirect rate of 11.26% and a fringe rate of 15.71% during the year ended June 30, 2024. These indirect and fringe rates were provided by Montgomery County Maryland Department of Health and Human Services. Support from Federal, state, and county grants as reported on the accompanying Consolidated Statement of Activities and Changes in Net Assets totaled $11,914,082 for the year ended June 30, 2024. Since this amount does not agree to the Schedule, following is a reconciliation of the Schedule to the total support from Federal, state, and county grants for the year ended June 30, 2024: Federal expenditures reported on the Schedule $ 1,197,747 Non-Federal expenditures (state and county grants) 10,716,335 TOTAL $ 11,914,082

Finding Details

Finding 2024-001
Finding 2024-001: Late Submission of Audit Report to the Federal Audit Clearinghouse (Significant Deficiency - Compliance) Federal Program: All Federal Programs Criteria: The Uniform Guidance, specifically 2 CFR 200.512(a), establishes the filing requirements for the submission of single audits to the Federal audit clearing house and indicates that the single audit reporting package must be submitted 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first. Condition: The single audit reporting package for the Organization's year ended June 30, 2023, was due to the Federal audit clearinghouse by March 31, 2024. However, the data collection form was submitted on April 12, 2024. Cause: During the 2023 audit process, fieldwork timelines had to be extended to accommodate the time the Organization needed to ensure that the general ledger detail supported the SEFA for 2023, which caused delays in the audit completion. As a result, the 2023 auditor's report(s) were dated April 3, 2024. Effect or Potential Effect: Not timely filing the single audit reporting package is indicative of timeliness issues with the audit process. Context: As a result of delays in the completion of the 2023 audit, the single audit reporting package for the year ended June 30, 2023, was not submitted timely. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management implement procedures and control processes to ensure that future audits are completed timely so that the single audit reporting package is submitted by the appropriate deadline of either 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first.
Finding 2024-002
Finding 2024-002: Allowable Costs - Capital Expenditures (Significant Deficiency) Federal Program: Assistance Listing Number 14.267 Criteria: The Uniform Guidance, specifically 2 CFR 200.439(b)(1), notes that capital expenditures for general purpose equipment, buildings and land are allowable as direct costs, but only with the prior written approval of the Federal agency or pass-through entity. Condition: The Organization did not obtain prior written approval from the granting agency for a vehicle purchased during the year ended June 30, 2024. Cause: The Organization received verbal approval during a call with the granting agency two months before the purchase was made, and had email correspondence with the granting agency discussing the process of allocating a portion of the total vehicle cost to the program. However, there was no prior written approval allowing the vehicle purchase to be allocated to the program. Effect or Potential Effect: The vehicle was not formally approved for purchase prior to payment, which creates the risk of the Organization being reimbursed for unallowable costs. Questioned Costs: $15,535. Context: We noted one instance where a capital expenditure allocated to the program was not supported with prior written approval. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management formally communicate with Federal granting agencies in writing to obtain prior written approval for capital expenditures that are intended to be used in a Federal program.
Finding 2024-001
Finding 2024-001: Late Submission of Audit Report to the Federal Audit Clearinghouse (Significant Deficiency - Compliance) Federal Program: All Federal Programs Criteria: The Uniform Guidance, specifically 2 CFR 200.512(a), establishes the filing requirements for the submission of single audits to the Federal audit clearing house and indicates that the single audit reporting package must be submitted 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first. Condition: The single audit reporting package for the Organization's year ended June 30, 2023, was due to the Federal audit clearinghouse by March 31, 2024. However, the data collection form was submitted on April 12, 2024. Cause: During the 2023 audit process, fieldwork timelines had to be extended to accommodate the time the Organization needed to ensure that the general ledger detail supported the SEFA for 2023, which caused delays in the audit completion. As a result, the 2023 auditor's report(s) were dated April 3, 2024. Effect or Potential Effect: Not timely filing the single audit reporting package is indicative of timeliness issues with the audit process. Context: As a result of delays in the completion of the 2023 audit, the single audit reporting package for the year ended June 30, 2023, was not submitted timely. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management implement procedures and control processes to ensure that future audits are completed timely so that the single audit reporting package is submitted by the appropriate deadline of either 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first.
Finding 2024-002
Finding 2024-002: Allowable Costs - Capital Expenditures (Significant Deficiency) Federal Program: Assistance Listing Number 14.267 Criteria: The Uniform Guidance, specifically 2 CFR 200.439(b)(1), notes that capital expenditures for general purpose equipment, buildings and land are allowable as direct costs, but only with the prior written approval of the Federal agency or pass-through entity. Condition: The Organization did not obtain prior written approval from the granting agency for a vehicle purchased during the year ended June 30, 2024. Cause: The Organization received verbal approval during a call with the granting agency two months before the purchase was made, and had email correspondence with the granting agency discussing the process of allocating a portion of the total vehicle cost to the program. However, there was no prior written approval allowing the vehicle purchase to be allocated to the program. Effect or Potential Effect: The vehicle was not formally approved for purchase prior to payment, which creates the risk of the Organization being reimbursed for unallowable costs. Questioned Costs: $15,535. Context: We noted one instance where a capital expenditure allocated to the program was not supported with prior written approval. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management formally communicate with Federal granting agencies in writing to obtain prior written approval for capital expenditures that are intended to be used in a Federal program.
Finding 2024-001
Finding 2024-001: Late Submission of Audit Report to the Federal Audit Clearinghouse (Significant Deficiency - Compliance) Federal Program: All Federal Programs Criteria: The Uniform Guidance, specifically 2 CFR 200.512(a), establishes the filing requirements for the submission of single audits to the Federal audit clearing house and indicates that the single audit reporting package must be submitted 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first. Condition: The single audit reporting package for the Organization's year ended June 30, 2023, was due to the Federal audit clearinghouse by March 31, 2024. However, the data collection form was submitted on April 12, 2024. Cause: During the 2023 audit process, fieldwork timelines had to be extended to accommodate the time the Organization needed to ensure that the general ledger detail supported the SEFA for 2023, which caused delays in the audit completion. As a result, the 2023 auditor's report(s) were dated April 3, 2024. Effect or Potential Effect: Not timely filing the single audit reporting package is indicative of timeliness issues with the audit process. Context: As a result of delays in the completion of the 2023 audit, the single audit reporting package for the year ended June 30, 2023, was not submitted timely. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management implement procedures and control processes to ensure that future audits are completed timely so that the single audit reporting package is submitted by the appropriate deadline of either 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first.
Finding 2024-001
Finding 2024-001: Late Submission of Audit Report to the Federal Audit Clearinghouse (Significant Deficiency - Compliance) Federal Program: All Federal Programs Criteria: The Uniform Guidance, specifically 2 CFR 200.512(a), establishes the filing requirements for the submission of single audits to the Federal audit clearing house and indicates that the single audit reporting package must be submitted 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first. Condition: The single audit reporting package for the Organization's year ended June 30, 2023, was due to the Federal audit clearinghouse by March 31, 2024. However, the data collection form was submitted on April 12, 2024. Cause: During the 2023 audit process, fieldwork timelines had to be extended to accommodate the time the Organization needed to ensure that the general ledger detail supported the SEFA for 2023, which caused delays in the audit completion. As a result, the 2023 auditor's report(s) were dated April 3, 2024. Effect or Potential Effect: Not timely filing the single audit reporting package is indicative of timeliness issues with the audit process. Context: As a result of delays in the completion of the 2023 audit, the single audit reporting package for the year ended June 30, 2023, was not submitted timely. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management implement procedures and control processes to ensure that future audits are completed timely so that the single audit reporting package is submitted by the appropriate deadline of either 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first.
Finding 2024-001
Finding 2024-001: Late Submission of Audit Report to the Federal Audit Clearinghouse (Significant Deficiency - Compliance) Federal Program: All Federal Programs Criteria: The Uniform Guidance, specifically 2 CFR 200.512(a), establishes the filing requirements for the submission of single audits to the Federal audit clearing house and indicates that the single audit reporting package must be submitted 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first. Condition: The single audit reporting package for the Organization's year ended June 30, 2023, was due to the Federal audit clearinghouse by March 31, 2024. However, the data collection form was submitted on April 12, 2024. Cause: During the 2023 audit process, fieldwork timelines had to be extended to accommodate the time the Organization needed to ensure that the general ledger detail supported the SEFA for 2023, which caused delays in the audit completion. As a result, the 2023 auditor's report(s) were dated April 3, 2024. Effect or Potential Effect: Not timely filing the single audit reporting package is indicative of timeliness issues with the audit process. Context: As a result of delays in the completion of the 2023 audit, the single audit reporting package for the year ended June 30, 2023, was not submitted timely. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management implement procedures and control processes to ensure that future audits are completed timely so that the single audit reporting package is submitted by the appropriate deadline of either 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first.
Finding 2024-002
Finding 2024-002: Allowable Costs - Capital Expenditures (Significant Deficiency) Federal Program: Assistance Listing Number 14.267 Criteria: The Uniform Guidance, specifically 2 CFR 200.439(b)(1), notes that capital expenditures for general purpose equipment, buildings and land are allowable as direct costs, but only with the prior written approval of the Federal agency or pass-through entity. Condition: The Organization did not obtain prior written approval from the granting agency for a vehicle purchased during the year ended June 30, 2024. Cause: The Organization received verbal approval during a call with the granting agency two months before the purchase was made, and had email correspondence with the granting agency discussing the process of allocating a portion of the total vehicle cost to the program. However, there was no prior written approval allowing the vehicle purchase to be allocated to the program. Effect or Potential Effect: The vehicle was not formally approved for purchase prior to payment, which creates the risk of the Organization being reimbursed for unallowable costs. Questioned Costs: $15,535. Context: We noted one instance where a capital expenditure allocated to the program was not supported with prior written approval. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management formally communicate with Federal granting agencies in writing to obtain prior written approval for capital expenditures that are intended to be used in a Federal program.
Finding 2024-001
Finding 2024-001: Late Submission of Audit Report to the Federal Audit Clearinghouse (Significant Deficiency - Compliance) Federal Program: All Federal Programs Criteria: The Uniform Guidance, specifically 2 CFR 200.512(a), establishes the filing requirements for the submission of single audits to the Federal audit clearing house and indicates that the single audit reporting package must be submitted 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first. Condition: The single audit reporting package for the Organization's year ended June 30, 2023, was due to the Federal audit clearinghouse by March 31, 2024. However, the data collection form was submitted on April 12, 2024. Cause: During the 2023 audit process, fieldwork timelines had to be extended to accommodate the time the Organization needed to ensure that the general ledger detail supported the SEFA for 2023, which caused delays in the audit completion. As a result, the 2023 auditor's report(s) were dated April 3, 2024. Effect or Potential Effect: Not timely filing the single audit reporting package is indicative of timeliness issues with the audit process. Context: As a result of delays in the completion of the 2023 audit, the single audit reporting package for the year ended June 30, 2023, was not submitted timely. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management implement procedures and control processes to ensure that future audits are completed timely so that the single audit reporting package is submitted by the appropriate deadline of either 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first.
Finding 2024-002
Finding 2024-002: Allowable Costs - Capital Expenditures (Significant Deficiency) Federal Program: Assistance Listing Number 14.267 Criteria: The Uniform Guidance, specifically 2 CFR 200.439(b)(1), notes that capital expenditures for general purpose equipment, buildings and land are allowable as direct costs, but only with the prior written approval of the Federal agency or pass-through entity. Condition: The Organization did not obtain prior written approval from the granting agency for a vehicle purchased during the year ended June 30, 2024. Cause: The Organization received verbal approval during a call with the granting agency two months before the purchase was made, and had email correspondence with the granting agency discussing the process of allocating a portion of the total vehicle cost to the program. However, there was no prior written approval allowing the vehicle purchase to be allocated to the program. Effect or Potential Effect: The vehicle was not formally approved for purchase prior to payment, which creates the risk of the Organization being reimbursed for unallowable costs. Questioned Costs: $15,535. Context: We noted one instance where a capital expenditure allocated to the program was not supported with prior written approval. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management formally communicate with Federal granting agencies in writing to obtain prior written approval for capital expenditures that are intended to be used in a Federal program.
Finding 2024-001
Finding 2024-001: Late Submission of Audit Report to the Federal Audit Clearinghouse (Significant Deficiency - Compliance) Federal Program: All Federal Programs Criteria: The Uniform Guidance, specifically 2 CFR 200.512(a), establishes the filing requirements for the submission of single audits to the Federal audit clearing house and indicates that the single audit reporting package must be submitted 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first. Condition: The single audit reporting package for the Organization's year ended June 30, 2023, was due to the Federal audit clearinghouse by March 31, 2024. However, the data collection form was submitted on April 12, 2024. Cause: During the 2023 audit process, fieldwork timelines had to be extended to accommodate the time the Organization needed to ensure that the general ledger detail supported the SEFA for 2023, which caused delays in the audit completion. As a result, the 2023 auditor's report(s) were dated April 3, 2024. Effect or Potential Effect: Not timely filing the single audit reporting package is indicative of timeliness issues with the audit process. Context: As a result of delays in the completion of the 2023 audit, the single audit reporting package for the year ended June 30, 2023, was not submitted timely. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management implement procedures and control processes to ensure that future audits are completed timely so that the single audit reporting package is submitted by the appropriate deadline of either 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first.
Finding 2024-001
Finding 2024-001: Late Submission of Audit Report to the Federal Audit Clearinghouse (Significant Deficiency - Compliance) Federal Program: All Federal Programs Criteria: The Uniform Guidance, specifically 2 CFR 200.512(a), establishes the filing requirements for the submission of single audits to the Federal audit clearing house and indicates that the single audit reporting package must be submitted 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first. Condition: The single audit reporting package for the Organization's year ended June 30, 2023, was due to the Federal audit clearinghouse by March 31, 2024. However, the data collection form was submitted on April 12, 2024. Cause: During the 2023 audit process, fieldwork timelines had to be extended to accommodate the time the Organization needed to ensure that the general ledger detail supported the SEFA for 2023, which caused delays in the audit completion. As a result, the 2023 auditor's report(s) were dated April 3, 2024. Effect or Potential Effect: Not timely filing the single audit reporting package is indicative of timeliness issues with the audit process. Context: As a result of delays in the completion of the 2023 audit, the single audit reporting package for the year ended June 30, 2023, was not submitted timely. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that management implement procedures and control processes to ensure that future audits are completed timely so that the single audit reporting package is submitted by the appropriate deadline of either 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first.