FAC Explorer

Audit 350103

FY End
2024-06-30
Total Expended
$9.16M
Findings
2
Programs
1
Organization: La Asociacion Nacional Pro Personas Mayores (the National Association for Hispanic Elderly) (CA)
Year: 2024 Accepted: 2025-03-28
Auditor: Maginnis Knechtel & McIntyre LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
539554 2024-001 Significant Deficiency - P
1115996 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
17.235 Senior Community Service Employment Program $9.16M Yes 1

Contacts

Name Title Type
LU5CHZGNKNN8 Helen Hernandez Auditee
6265641988 Yu Chen Vong Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICY Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Asociación Nacional Pro Personas Mayores (National Association for Hispanic Elderly) (the “Association”) and is presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. 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. De Minimis Rate Used: N Rate Explanation: The Association does not use the 10% de minimis indirect cost rate, but a negotiated indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Asociación Nacional Pro Personas Mayores (National Association for Hispanic Elderly) (the “Association”) and is presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. 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. The amounts reported as federal expenditures were obtained from the Association’s general ledger. Because the Schedule presents only a selected portion of the operations of the Association, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the Association. Indirect Cost Indirect costs represent general and administrative expenses. These costs are allocated to grants in accordance with Office of Management and Budget Circular No. A-122, “Cost Principles for Nonprofit Organizations,” and the requirements of the applicable funding agency. The Association did not elect to use the ten percent de minimis indirect cost rate, but a negotiated indirect cost rate for the year ended June 30, 2024.

Finding Details

Finding 2024-001
Finding 2024-001 Not meeting the deadline for Indirect Cost Rate Proposal Criteria: Per grant agreement with Department of Labor (DOL) Part B(1.) Indirect Cost Rate and Cost Allocation Plan: An award recipient that is claiming indirect costs to a Federal award must have a Negotiated Indirect Cost Rate Agreement (NICRA), Cost Allocation Plan (CAP), or elect to utilize the de minimis rate of 10% of modified total direct costs (MTDC). Per the 2CFR Part 200, Appendix XI, Compliance Supplement May 2024, Part 3, “NPOs that have previously established indirect cost rates must submit a new ICRP within six months after the close of each fiscal year.” The Association is required to submit an indirect cost rate proposal to the DOL by the annual deadline to obtain an updated NICRA to establish the final rate. The Association should have an internal control process in place to ensure the timely submission of its indirect cost rate proposal to the appropriate parties. Condition: The Association did not submit the fiscal years 2022-2023 and 2023-2024 indirect cost rate proposal to establish a final rate to the Department of Labor by the required due date. Questioned Cost: Not applicable. The Association is currently working with DOL to complete the required indirect cost rate proposals. Cause: During the fiscal year, the Association experienced staff turnover and the extended leave of key management personnel which prevented the Association from complying. Effect: The delay in finalizing the indirect cost rate proposal may lead to the Association being disallowed for some of the indirect costs incurred. Recommendation: Management is currently working with the DOL Indirect Cost Rate negotiator to complete the required indirect cost rate proposal. We recommend that management submit the indirect cost rate proposal to the DOL as soon as possible. We also recommend that the Association continue to obtain the necessary temporary support while searching to recruit new staff members. Management may also consider training seasoned staff members for important roles at the Association to provide backup support. We further recommend that management put in place procedures or personnel to ensure this matter does not occur in the future. Views of Responsible Officials: The Association’s management acknowledges the finding and has been working with DOL personnel on completing the required indirect cost rate proposals. Management will also engage a consultant to assist with the completion of the indirect cost rate proposals as soon as feasible.
Finding 2024-001
Finding 2024-001 Not meeting the deadline for Indirect Cost Rate Proposal Criteria: Per grant agreement with Department of Labor (DOL) Part B(1.) Indirect Cost Rate and Cost Allocation Plan: An award recipient that is claiming indirect costs to a Federal award must have a Negotiated Indirect Cost Rate Agreement (NICRA), Cost Allocation Plan (CAP), or elect to utilize the de minimis rate of 10% of modified total direct costs (MTDC). Per the 2CFR Part 200, Appendix XI, Compliance Supplement May 2024, Part 3, “NPOs that have previously established indirect cost rates must submit a new ICRP within six months after the close of each fiscal year.” The Association is required to submit an indirect cost rate proposal to the DOL by the annual deadline to obtain an updated NICRA to establish the final rate. The Association should have an internal control process in place to ensure the timely submission of its indirect cost rate proposal to the appropriate parties. Condition: The Association did not submit the fiscal years 2022-2023 and 2023-2024 indirect cost rate proposal to establish a final rate to the Department of Labor by the required due date. Questioned Cost: Not applicable. The Association is currently working with DOL to complete the required indirect cost rate proposals. Cause: During the fiscal year, the Association experienced staff turnover and the extended leave of key management personnel which prevented the Association from complying. Effect: The delay in finalizing the indirect cost rate proposal may lead to the Association being disallowed for some of the indirect costs incurred. Recommendation: Management is currently working with the DOL Indirect Cost Rate negotiator to complete the required indirect cost rate proposal. We recommend that management submit the indirect cost rate proposal to the DOL as soon as possible. We also recommend that the Association continue to obtain the necessary temporary support while searching to recruit new staff members. Management may also consider training seasoned staff members for important roles at the Association to provide backup support. We further recommend that management put in place procedures or personnel to ensure this matter does not occur in the future. Views of Responsible Officials: The Association’s management acknowledges the finding and has been working with DOL personnel on completing the required indirect cost rate proposals. Management will also engage a consultant to assist with the completion of the indirect cost rate proposals as soon as feasible.