Audit 347218

FY End
2024-06-30
Total Expended
$872,909
Findings
2
Programs
5
Organization: Shenango Valley Urban League (PA)
Year: 2024 Accepted: 2025-03-21

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
529224 2024-004 Material Weakness - ABCEH
1105666 2024-004 Material Weakness - ABCEH

Contacts

Name Title Type
DPBXHVVUBD13 Erin Houston Auditee
7249815310 Sean Kocan 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a select portion of the operations of the Organization, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Shenango Valley Urban League has elected not use the 10-precent de minimis indirect cost rate allowed under the Uniform Guidance. Shenango Valley Urban League applies an indirect cost rate provided by the National Urban League, Inc. The Organization must submit a proposal six months after year end to establish a final rate and may have to repay funds if the rate established is less than the provisional rate originally provided. The provisional rate for the current fiscal year was established as 41.51% for the year ended June 30, 224. The Organization used an indirect cost rate of 29.96% for the year ended June 30, 2024. General Information: The supplementary schedule of expenditures of federal awards is presents the activities of all the federal financial assistance programs of Shenango Valley Urban League, Inc. All financial assistance received directly from federal agencies as well as financial assistance passed through other governmental agencies or not-for-profit organizations are included on the schedule. Basis of Accounting: The supplementary schedule of expenditures of federal awards is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amount presented in, or used in the preparation of the financial statements. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or a modified accrual basis of accounting.
Title: Note B - Accrued or Deferred Revenue 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a select portion of the operations of the Organization, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Shenango Valley Urban League has elected not use the 10-precent de minimis indirect cost rate allowed under the Uniform Guidance. Shenango Valley Urban League applies an indirect cost rate provided by the National Urban League, Inc. The Organization must submit a proposal six months after year end to establish a final rate and may have to repay funds if the rate established is less than the provisional rate originally provided. The provisional rate for the current fiscal year was established as 41.51% for the year ended June 30, 224. The Organization used an indirect cost rate of 29.96% for the year ended June 30, 2024. The amounts reported in this schedule as revenue and expenditures may differ from certain financial reports submitted to federal, state, or city funding agencies due to those reports being submitted for different reporting periods. There was no accrued or deferred revenue recorded as of June 30, 2024 and 2023. The following is a reconciliation of grant awards and the fiscal year of revenue recognition. See the Notes to the SEFA for chart/table
Title: Note C - Identifying Number Assigned by Pass-Through Entities 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a select portion of the operations of the Organization, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Shenango Valley Urban League has elected not use the 10-precent de minimis indirect cost rate allowed under the Uniform Guidance. Shenango Valley Urban League applies an indirect cost rate provided by the National Urban League, Inc. The Organization must submit a proposal six months after year end to establish a final rate and may have to repay funds if the rate established is less than the provisional rate originally provided. The provisional rate for the current fiscal year was established as 41.51% for the year ended June 30, 224. The Organization used an indirect cost rate of 29.96% for the year ended June 30, 2024. The Uniform Guidance requires that the identifying number assigned by pass-through entities be included on the schedule of expenditures of federal awards. The counties do not assign an identifying number to their contract with the Organization. Therefore, there is no identifying number included on the schedule of expenditures of federal awards.
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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a select portion of the operations of the Organization, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Shenango Valley Urban League has elected not use the 10-precent de minimis indirect cost rate allowed under the Uniform Guidance. Shenango Valley Urban League applies an indirect cost rate provided by the National Urban League, Inc. The Organization must submit a proposal six months after year end to establish a final rate and may have to repay funds if the rate established is less than the provisional rate originally provided. The provisional rate for the current fiscal year was established as 41.51% for the year ended June 30, 224. The Organization used an indirect cost rate of 29.96% for the year ended June 30, 2024. Shenango Valley Urban League has elected not use the 10-precent de minimis indirect cost rate allowed under the Uniform Guidance. Shenango Valley Urban League applies an indirect cost rate provided by the National Urban League, Inc. The Organization must submit a proposal six months after year end to establish a final rate and may have to repay funds if the rate established is less than the provisional rate originally provided. The provisional rate for the current fiscal year was established as 41.51% for the year ended June 30, 224. The Organization used an indirect cost rate of 29.96% for the year ended June 30, 2024.
Title: Note E - 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a select portion of the operations of the Organization, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Shenango Valley Urban League has elected not use the 10-precent de minimis indirect cost rate allowed under the Uniform Guidance. Shenango Valley Urban League applies an indirect cost rate provided by the National Urban League, Inc. The Organization must submit a proposal six months after year end to establish a final rate and may have to repay funds if the rate established is less than the provisional rate originally provided. The provisional rate for the current fiscal year was established as 41.51% for the year ended June 30, 224. The Organization used an indirect cost rate of 29.96% for the year ended June 30, 2024. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a select portion of the operations of the Organization, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note F - Subrecipient Expenditures 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Because the schedule presents only a select portion of the operations of the Organization, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Shenango Valley Urban League has elected not use the 10-precent de minimis indirect cost rate allowed under the Uniform Guidance. Shenango Valley Urban League applies an indirect cost rate provided by the National Urban League, Inc. The Organization must submit a proposal six months after year end to establish a final rate and may have to repay funds if the rate established is less than the provisional rate originally provided. The provisional rate for the current fiscal year was established as 41.51% for the year ended June 30, 224. The Organization used an indirect cost rate of 29.96% for the year ended June 30, 2024. The Organization did not pass any federal awards through to subrecipients during the fiscal year ended June 30, 2024.

Finding Details

Finding 2024-004 - Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Agriculture Federal Program Name: Special Supplemental Nutrition Program for Women Assistance Listing Number: 10.557 Pass-Through Agency: Pennsylvania Department of Health Pass-Through Grantor’s Number: SAP 4100093389 Award Period: 10/1/2022 – 9/30/2023, 10/1/2023 – 9/30/2024 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements. The schedule must include the total federal awards expended as determined in accordance with 2 CFR 200.502. Condition and Context: The expenditures included on the schedule of expenditures of Federal awards (Schedule) initially prepared by the Organization were understated and required material adjustment. Questioned Costs: $-0- Cause: The Organization did not have adequate policies and procedures in place for accurately determining the amount of the assistance expended during the fiscal year. Effect: The Schedule prepared by the Organization did not accurately present the federal awards expended during the fiscal year. Repeat finding: No Recommendation: We recommend the following: • The Organization should establish policies and procedures to understand and ensure compliance with the Organization’s contractual obligations. • The Organization should create and implement procedures to timely and accurately determine the source of funding received through various county contracts. • The Organization should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-004 - Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Agriculture Federal Program Name: Special Supplemental Nutrition Program for Women Assistance Listing Number: 10.557 Pass-Through Agency: Pennsylvania Department of Health Pass-Through Grantor’s Number: SAP 4100093389 Award Period: 10/1/2022 – 9/30/2023, 10/1/2023 – 9/30/2024 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements. The schedule must include the total federal awards expended as determined in accordance with 2 CFR 200.502. Condition and Context: The expenditures included on the schedule of expenditures of Federal awards (Schedule) initially prepared by the Organization were understated and required material adjustment. Questioned Costs: $-0- Cause: The Organization did not have adequate policies and procedures in place for accurately determining the amount of the assistance expended during the fiscal year. Effect: The Schedule prepared by the Organization did not accurately present the federal awards expended during the fiscal year. Repeat finding: No Recommendation: We recommend the following: • The Organization should establish policies and procedures to understand and ensure compliance with the Organization’s contractual obligations. • The Organization should create and implement procedures to timely and accurately determine the source of funding received through various county contracts. • The Organization should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.