FAC Explorer

Audit 349032

FY End
2024-06-30
Total Expended
$12.35M
Findings
8
Programs
17
Organization: Catholic Charities of Los Angeles, Inc. (CA)
Year: 2024 Accepted: 2025-03-27
Auditor: Armanino LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
538016 2024-001 Significant Deficiency - P
538017 2024-002 Significant Deficiency - L
538018 2024-003 Significant Deficiency - L
538019 2024-004 Significant Deficiency - N
1114458 2024-001 Significant Deficiency - P
1114459 2024-002 Significant Deficiency - L
1114460 2024-003 Significant Deficiency - L
1114461 2024-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.52M Yes 0
17.259 Wioa Youth Activities $737,080 Yes 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $553,558 - 0
10.569 Emergency Food Assistance Program (food Commodities) $331,656 Yes 0
17.258 Wioa Adult Program $239,943 Yes 0
93.676 Unaccompanied Children Program $226,565 - 0
14.267 Continuum of Care Program $117,183 - 0
17.278 Wioa Dislocated Worker Formula Grants $39,985 Yes 0
14.231 Emergency Solutions Grant Program $36,889 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $35,743 - 0
93.558 Temporary Assistance for Needy Families $33,172 - 0
93.569 Community Services Block Grant $30,392 - 0
93.598 Services to Victims of A Severe Form of Trafficking $26,730 - 0
14.218 Community Development Block Grants/entitlement Grants $25,000 - 0
93.575 Child Care and Development Block Grant $16,845 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $7,524 - 0
97.024 Emergency Food and Shelter National Board Program $5,949 - 0

Contacts

Name Title Type
NJ3FZRLVHRN8 Daniel O'Brien Auditee
2132513410 Michael Boulton Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal, state, county, and city awards(the "Schedule") includes all government grant expenditure activity of Catholic Charities of Los Angeles, Inc. ("Catholic Charities") for the year ended June 30, 2024 and is presented using the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America. The federal 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). For the purposes of the Schedule, awards include all grants, contracts, and similar agreements entered into directly and indirectly between Cahtolic Charities, agancies, and the departments of the federal government. This includes cash and non-cash items. Because the Schedule presents only a selected protion of the operations of the Catholic Charities, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Catholic Charities. 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-Through entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: Catholic Charities uses an approved federal indirect cost rate from its cognizant agency, Department of Health and Human Services, which is sometimes capped below the approved rate in certain grants. Catholic Charities has elected not to use the 10% de minimis indirect cost rsate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
AL number: n/a AL title: Federal award identification number and year: n/a Name of federal agency: n/a Name of pass through entity: n/a Repeat finding: No Criteria:In accordance with 2 CFR §200.510(b), Organizations are required to prepare an accurate schedule of sources and uses of federal awards on the schedule of expenditures of federal awards. Condition:The schedule of expenditures of federal awards prepared by Catholic Charities was incorrectly compiled resulting in a significant amount of non governmental funds being included on the schedule. Cause: Catholic Charities SEFA includes all of its government funding sources and is broken down by source e.g federal, state and local. During preparation, management reconciled the total SEFA to total government revenue. The error occurred because management did not reconcile the schedule by funding source total. Effect or potential effect:The schedule of expenditures of federal awards prepared by Catholic Charities management improperly included $1,005,710 in expenditures of non federal awards. Questioned cost:No questioned costs identified. Recommendation:Catholic Charities management should add a step to the SEFA preparation process for reconciling the SEFA to government funding source total per the general ledger. Views of responsible officials:Going forward Catholic Charities will add a schedule that reconciles the SEFA by funding source to the general ledger accounts.
Finding 2024-002
AL number: 17.258, 17.259 and 17.278 AL title: WIOA Cluster Federal award identification number and year: n/a Name of federal agency:U.S. Department of Labor Name of pass through entity:County of Los Angeles Workforce Development Aging and Community Services; City of Los Angeles Economic and Workforce Development Department Repeat finding: No Criteria:Catholic Charities is required to submit monthly reports to the City of Los Angeles and County of Los Angeles within 15 days of month end. Condition:We tested four months of reporting and noted that reporting in two of the four months were not submitted timely. Cause: Catholic Charities lacked sufficient accounting resources to submit the monthly reports on a timely basis. Effect or potential effect:Catholic Charities was not in compliance with the Reporting compliance requirement. Questioned cost:No questioned costs identified. Recommendation:Management should ensure that timely reporting is prioritized and bring in temporary assistance as needed. Views of responsible officials: This was the result of being understaff during this period. Priorities were determined and unfortunately these reports were delayed. Sufficient staff has been hired since this occurred and I don't see this as a problem going forward.
Finding 2024-003
AL number:21.027 AL title: Coronavirus State and Local Fiscal Recovery Funds Federal award identification number and year: n/a Name of federal agency:U.S. Department of Treasury Name of pass through entity:County of Los Angeles Workforce Development Aging and Community Services Repeat finding: No Criteria:Catholic Charities is required to submit monthly reports to the County of Los Angeles within 15 days of month end. Condition:We tested three months of reporting and noted that reporting for all three months were not submitted timely. Cause: Catholic Charities lacked sufficient accounting resources to submit the monthly reports on a timely basis. Effect or potential effect:Catholic Charities was not in compliance with the Reporting compliance requirement. Questioned cost:No questioned costs identified. Recommendation:Management should ensure that timely reporting is prioritized and bring in temporary assistance as needed. Views of responsible officials: This was the result of being understaff during this period. Priorities were determined and unfortunately these reports were delayed. Sufficient staff has been hired since this occurred and I don't see this as a problem going forward.
Finding 2024-004
AL number:10.569 AL title: Emergency Food Assistance Program (Food Commodities) Federal award identification number and year: n/a Name of federal agency:Department of Agriculture Name of pass through entity:Food Bank of Southern California Repeat finding: No Criteria:Catholic Charities is required to conduct at least monthly inventory of USDA foods. Condition:We tested all 12 food distribution locations and two of the locations were unable to provide evidence of inventory work performed for the month of June 2024. Cause: Catholic Charities staff were unaware of the requirement to perform at least monthly inventory of USDA foods. Effect or potential effect:Catholic Charities was not in compliance with the requirement to at least monthly inventory of USDA foods. Questioned cost:No questioned costs identified. Recommendation:Management should ensure that staff at the food distribution locations are aware of the compliance requirements and provide additional training as deemed necessary. Inventory processes and internal controls can be tailored to the nature and size of the location receiving and distributing the food resources. Views of responsible officials: Management will review monthly inventory reports for each shelter going forward.
Finding 2024-001
AL number: n/a AL title: Federal award identification number and year: n/a Name of federal agency: n/a Name of pass through entity: n/a Repeat finding: No Criteria:In accordance with 2 CFR §200.510(b), Organizations are required to prepare an accurate schedule of sources and uses of federal awards on the schedule of expenditures of federal awards. Condition:The schedule of expenditures of federal awards prepared by Catholic Charities was incorrectly compiled resulting in a significant amount of non governmental funds being included on the schedule. Cause: Catholic Charities SEFA includes all of its government funding sources and is broken down by source e.g federal, state and local. During preparation, management reconciled the total SEFA to total government revenue. The error occurred because management did not reconcile the schedule by funding source total. Effect or potential effect:The schedule of expenditures of federal awards prepared by Catholic Charities management improperly included $1,005,710 in expenditures of non federal awards. Questioned cost:No questioned costs identified. Recommendation:Catholic Charities management should add a step to the SEFA preparation process for reconciling the SEFA to government funding source total per the general ledger. Views of responsible officials:Going forward Catholic Charities will add a schedule that reconciles the SEFA by funding source to the general ledger accounts.
Finding 2024-002
AL number: 17.258, 17.259 and 17.278 AL title: WIOA Cluster Federal award identification number and year: n/a Name of federal agency:U.S. Department of Labor Name of pass through entity:County of Los Angeles Workforce Development Aging and Community Services; City of Los Angeles Economic and Workforce Development Department Repeat finding: No Criteria:Catholic Charities is required to submit monthly reports to the City of Los Angeles and County of Los Angeles within 15 days of month end. Condition:We tested four months of reporting and noted that reporting in two of the four months were not submitted timely. Cause: Catholic Charities lacked sufficient accounting resources to submit the monthly reports on a timely basis. Effect or potential effect:Catholic Charities was not in compliance with the Reporting compliance requirement. Questioned cost:No questioned costs identified. Recommendation:Management should ensure that timely reporting is prioritized and bring in temporary assistance as needed. Views of responsible officials: This was the result of being understaff during this period. Priorities were determined and unfortunately these reports were delayed. Sufficient staff has been hired since this occurred and I don't see this as a problem going forward.
Finding 2024-003
AL number:21.027 AL title: Coronavirus State and Local Fiscal Recovery Funds Federal award identification number and year: n/a Name of federal agency:U.S. Department of Treasury Name of pass through entity:County of Los Angeles Workforce Development Aging and Community Services Repeat finding: No Criteria:Catholic Charities is required to submit monthly reports to the County of Los Angeles within 15 days of month end. Condition:We tested three months of reporting and noted that reporting for all three months were not submitted timely. Cause: Catholic Charities lacked sufficient accounting resources to submit the monthly reports on a timely basis. Effect or potential effect:Catholic Charities was not in compliance with the Reporting compliance requirement. Questioned cost:No questioned costs identified. Recommendation:Management should ensure that timely reporting is prioritized and bring in temporary assistance as needed. Views of responsible officials: This was the result of being understaff during this period. Priorities were determined and unfortunately these reports were delayed. Sufficient staff has been hired since this occurred and I don't see this as a problem going forward.
Finding 2024-004
AL number:10.569 AL title: Emergency Food Assistance Program (Food Commodities) Federal award identification number and year: n/a Name of federal agency:Department of Agriculture Name of pass through entity:Food Bank of Southern California Repeat finding: No Criteria:Catholic Charities is required to conduct at least monthly inventory of USDA foods. Condition:We tested all 12 food distribution locations and two of the locations were unable to provide evidence of inventory work performed for the month of June 2024. Cause: Catholic Charities staff were unaware of the requirement to perform at least monthly inventory of USDA foods. Effect or potential effect:Catholic Charities was not in compliance with the requirement to at least monthly inventory of USDA foods. Questioned cost:No questioned costs identified. Recommendation:Management should ensure that staff at the food distribution locations are aware of the compliance requirements and provide additional training as deemed necessary. Inventory processes and internal controls can be tailored to the nature and size of the location receiving and distributing the food resources. Views of responsible officials: Management will review monthly inventory reports for each shelter going forward.