FAC Explorer

Audit 348173

FY End
2024-06-30
Total Expended
$1.31M
Findings
2
Programs
9
Organization: Saving Grace (OR)
Year: 2024 Accepted: 2025-03-25
Auditor: Jones & Roth PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
530119 2024-001 Significant Deficiency - I
1106561 2024-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $160,470 Yes 0
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $143,455 - 0
16.021 Justice Systems Response to Families $124,393 - 0
14.231 Emergency Solutions Grant Program $79,503 - 0
16.575 Crime Victim Assistance $36,629 - 0
16.589 Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program $22,852 - 0
97.024 Emergency Food and Shelter National Board Program $11,988 - 0
16.588 Violence Against Women Formula Grants $2,947 - 0
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $1,004 - 0

Contacts

Name Title Type
TVEHN5JNJJL3 Rebecca Swearingen Auditee
5413829227 Brian Newton Auditor
No contacts on file

Notes to SEFA

Title: Major Programs Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Saving Grace. The information in this 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Summary of Significant 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, Subpart E, Cost Principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Saving Grace has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Uniform Guidance establishes criteria to be used in defining major programs. Major programs for Saving Grace are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes.
Title: Insurance Coverage Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Saving Grace. The information in this 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Summary of Significant 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, Subpart E, Cost Principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Saving Grace has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Saving Grace maintains insurance coverage as recommended by its insurance agent of record.
Title: Subrecipients Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Saving Grace. The information in this 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Summary of Significant 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, Subpart E, Cost Principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Saving Grace has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. No award payments were made to subrecipients for the year ended June 30, 2024.

Finding Details

Finding 2024-001
Type: Significant deficiency in internal control over compliance and an instance of noncompliance with respect to procurement requirements. Federal program: AL# 21.027, Coronavirus State and Local Fiscal Recovery Funds. Criteria: The Organization is obligated to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 C.F.R. Part 200, of which paragraph 200.324(d) states that the cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used. Questioned costs: $9,684; calculated as vendor’s profit based on 20% of the actual construction cost of $48,420 per vendor invoices. Condition: The Organization entered into a cost plus a percentage of cost contract with a vendor for restoration services related to its Bend, Oregon location. Effect: The Organization was out of compliance with 2 C.F.R. § 200.324(d). Cause: The contract was signed on April 7, 2023. The contract does not directly stipulate that the Organization would be billed under a cost plus a percentage of cost method, however, per the progress billing invoices, it is clear that the Organization was billed at cost plus 20 percent. The Organization did not have sufficient internal controls in place to identify that the contract was billed under a cost plus a percentage of cost method. The total fee estimates were agreed to before commencement of the project and were not modified from the actual amount billed. Additionally, the contract does state any changes to the price of the contract are subject to written, signed change orders for pre-approval by the Organization. Prevalence: This is an internal control design deficiency and an instance of immaterial noncompliance resulting in questioned costs of $9,684. Repeat finding: No. Auditor’s recommendation: Modify internal control policies to disallow entering into any contract that will be paid with federal award funds billed as a cost plus a percentage of cost method and implement a policy to review applicable invoices in enough detail to identify if, in fact, not being billed under such an arrangement.
Finding 2024-001
Type: Significant deficiency in internal control over compliance and an instance of noncompliance with respect to procurement requirements. Federal program: AL# 21.027, Coronavirus State and Local Fiscal Recovery Funds. Criteria: The Organization is obligated to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 C.F.R. Part 200, of which paragraph 200.324(d) states that the cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used. Questioned costs: $9,684; calculated as vendor’s profit based on 20% of the actual construction cost of $48,420 per vendor invoices. Condition: The Organization entered into a cost plus a percentage of cost contract with a vendor for restoration services related to its Bend, Oregon location. Effect: The Organization was out of compliance with 2 C.F.R. § 200.324(d). Cause: The contract was signed on April 7, 2023. The contract does not directly stipulate that the Organization would be billed under a cost plus a percentage of cost method, however, per the progress billing invoices, it is clear that the Organization was billed at cost plus 20 percent. The Organization did not have sufficient internal controls in place to identify that the contract was billed under a cost plus a percentage of cost method. The total fee estimates were agreed to before commencement of the project and were not modified from the actual amount billed. Additionally, the contract does state any changes to the price of the contract are subject to written, signed change orders for pre-approval by the Organization. Prevalence: This is an internal control design deficiency and an instance of immaterial noncompliance resulting in questioned costs of $9,684. Repeat finding: No. Auditor’s recommendation: Modify internal control policies to disallow entering into any contract that will be paid with federal award funds billed as a cost plus a percentage of cost method and implement a policy to review applicable invoices in enough detail to identify if, in fact, not being billed under such an arrangement.