FAC Explorer

Audit 349202

FY End
2024-06-30
Total Expended
$1.86M
Findings
10
Programs
4
Organization: Urban League of Greater Chattanooga (TN)
Year: 2024 Accepted: 2025-03-27
Auditor: Hoskins & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
538178 2024-001 Significant Deficiency - B
538179 2024-001 Significant Deficiency - B
538180 2024-001 Significant Deficiency - B
538181 2024-001 Significant Deficiency - B
538182 2024-001 Significant Deficiency - B
1114620 2024-001 Significant Deficiency - B
1114621 2024-001 Significant Deficiency - B
1114622 2024-001 Significant Deficiency - B
1114623 2024-001 Significant Deficiency - B
1114624 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
21.019 Coronavirus Relief Fund $437,305 Yes 1
17.235 Senior Community Service Employment Program $387,546 Yes 1
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $266,796 - 1
84.425 Education Stabilization Fund $158,803 - 1

Contacts

Name Title Type
MXNPU4AXN447 Candy Johnson Auditee
4237561762 Nelson Dixon Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of presentation Accounting Policies: The accompanying Schedule of Federal and State Awards (the schedule) includes the federal, state, and local activity of Urban League of Greater Chattanooga for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of the Code of Federal Regulations, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Title 2, Section 200 (the Uniform Guidance). Because the schedule presents only selected portions of the operations of Urban League of Greater Chattanooga it is not intended to and does not present the financial position, changes in net assets, or cash flows of Urban League of Greater Chattanooga. De Minimis Rate Used: Y Rate Explanation: Urban League of Greater Chattanooga has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for certain grants but entered into some agreements where the 10% de minimis indirect cost rate was used. The accompanying Schedule of Federal and State Awards (the schedule) includes the federal, state, and local activity of Urban League of Greater Chattanooga for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of the Code of Federal Regulations, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Title 2, Section 200 (the Uniform Guidance). Because the schedule presents only selected portions of the operations of Urban League of Greater Chattanooga it is not intended to and does not present the financial position, changes in net assets, or cash flows of Urban League of Greater Chattanooga.
Title: Note 2 - Summary of significant accounting policies Accounting Policies: The accompanying Schedule of Federal and State Awards (the schedule) includes the federal, state, and local activity of Urban League of Greater Chattanooga for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of the Code of Federal Regulations, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Title 2, Section 200 (the Uniform Guidance). Because the schedule presents only selected portions of the operations of Urban League of Greater Chattanooga it is not intended to and does not present the financial position, changes in net assets, or cash flows of Urban League of Greater Chattanooga. De Minimis Rate Used: Y Rate Explanation: Urban League of Greater Chattanooga has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for certain grants but entered into some agreements where the 10% de minimis indirect cost rate was used. Expenditures reported on the schedule are reported on the modified 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 3 - Indirect cost rate Accounting Policies: The accompanying Schedule of Federal and State Awards (the schedule) includes the federal, state, and local activity of Urban League of Greater Chattanooga for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of the Code of Federal Regulations, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Title 2, Section 200 (the Uniform Guidance). Because the schedule presents only selected portions of the operations of Urban League of Greater Chattanooga it is not intended to and does not present the financial position, changes in net assets, or cash flows of Urban League of Greater Chattanooga. De Minimis Rate Used: Y Rate Explanation: Urban League of Greater Chattanooga has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for certain grants but entered into some agreements where the 10% de minimis indirect cost rate was used. Urban League of Greater Chattanooga has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for certain grants but entered into some agreements where the 10% de minimis indirect cost rate was used.
Title: Note 4 - Program Costs Accounting Policies: The accompanying Schedule of Federal and State Awards (the schedule) includes the federal, state, and local activity of Urban League of Greater Chattanooga for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of the Code of Federal Regulations, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Title 2, Section 200 (the Uniform Guidance). Because the schedule presents only selected portions of the operations of Urban League of Greater Chattanooga it is not intended to and does not present the financial position, changes in net assets, or cash flows of Urban League of Greater Chattanooga. De Minimis Rate Used: Y Rate Explanation: Urban League of Greater Chattanooga has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for certain grants but entered into some agreements where the 10% de minimis indirect cost rate was used. The amounts shown as expenditure represent only the federal award portion of the program costs. Entire program costs are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Finding Details

Finding 2024-001
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Finding 2024-001
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Finding 2024-001
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Finding 2024-001
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Finding 2024-001
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Finding 2024-001
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Finding 2024-001
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Finding 2024-001
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Finding 2024-001
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.
Finding 2024-001
Finding # 2024-001 – Indirect Costs Allocation Process Needs Improvement Federal program titles: • Volunteer Income Tax Assistance ALN: 21.009 • Coronavirus State and Local Recovery Funds ALN: 21.019 • Senior Care Service Employment Program ALN 17.235 • Twenty First Century Community Learning ALN 84.287C • Connected Literacy Program ALN 84.425B Criteria or specific requirements: 2 CFR § 200.412 Classification of costs “…cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double charging of Federal awards. Condition and Context: The Urban League of Greater Chattanooga process for allocating indirect costs to programs where indirect costs are reimbursable needs improvement. The is no process to prevent or detect if the indirect cost pool costs support the amounts charged to federal and state programs. Cause: The Urban League of Greater Chattanooga records indirect costs to a cost allocation pool but does not record a journal entry in the general ledger to allocate those costs to the programs. Effect: Duplication of cost charged to programs could result in receiving overpayments. Based on analysis of the total indirect cost pool, the indirect cost pool included supported indirect costs charged to the programs. Known and Likely Questioned Costs: None Recommendation: Implement a monthly process to record and allocate indirect costs to programs where an indirect rate is allowed. The allocation should be prepared by someone knowledgeable of the indirect allocation and reviewed by another individual at least one level above.