Audit 350868

FY End
2024-06-30
Total Expended
$875,717
Findings
4
Programs
2
Year: 2024 Accepted: 2025-03-31
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
544063 2024-001 Material Weakness - P
544064 2024-001 Material Weakness - P
1120505 2024-001 Material Weakness - P
1120506 2024-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
21.029 Coronavirus Capital Projects Fund $760,560 Yes 1
97.008 Non-Profit Security Program $115,157 - 1

Contacts

Name Title Type
KLLWMPD8Q827 Allison C. David Auditee
3027922757 Peter S. Kennedy Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1—BASIS OF PRESENTATION Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received in advance, they are recorded as deferred revenue until earned. Once costs are incurred on reimbursement grants, a receivable from the granting agency is recorded. Grant revenues are also considered earned upon the purchase of a capital asset. De Minimis Rate Used: N Rate Explanation: The de minimis cost rate was not applicable to the grants The accompanying Schedule of Expenditures of Federal Awards includes expenditures related to Center’s direct and indirect federal grants. The information is presented following 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). Because the Schedule presents only a selected portion of the operations of Center, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of the Center.
Title: NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received in advance, they are recorded as deferred revenue until earned. Once costs are incurred on reimbursement grants, a receivable from the granting agency is recorded. Grant revenues are also considered earned upon the purchase of a capital asset. De Minimis Rate Used: N Rate Explanation: The de minimis cost rate was not applicable to the grants Expenditures reported on the Schedule are reported on the accrual basis of accounting. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received in advance, they are recorded as deferred revenue until earned. Once costs are incurred on reimbursement grants, a receivable from the granting agency is recorded. Grant revenues are also considered earned upon the purchase of a capital asset.
Title: NOTE 3— RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received in advance, they are recorded as deferred revenue until earned. Once costs are incurred on reimbursement grants, a receivable from the granting agency is recorded. Grant revenues are also considered earned upon the purchase of a capital asset. De Minimis Rate Used: N Rate Explanation: The de minimis cost rate was not applicable to the grants Federal expenditures are recognized following, as applicable, the cost principles contained in 2 CFR, Part 200, Subpart E, Cost Principles, 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. Additionally, expenditures incurred for various programs may exceed the amounts awarded from the respective pass-through entity or agency. The amounts reported on the Schedule are limited to the award amounts. Amounts in excess of this amount are paid out of non-federal sources.
Title: NOTE 4—FEDERAL INDIRECT RATE Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received in advance, they are recorded as deferred revenue until earned. Once costs are incurred on reimbursement grants, a receivable from the granting agency is recorded. Grant revenues are also considered earned upon the purchase of a capital asset. De Minimis Rate Used: N Rate Explanation: The de minimis cost rate was not applicable to the grants Allowable indirect costs for each award are determined by the related terms and conditions developed by the awarding agency for each program. The Center has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Description: Year-End Cut-Off Procedures Criteria: The Committee of Sponsoring Organizations of the Treadway Commission issued its updated Internal Control – Integrated Framework in May 2013. It defines internal control as, “a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance.” Condition: We noted the following conditions: • Invoices related to the year under audit were not accrued in the appropriate time period. • Revenues from two grants for which conditional terms were met were not recognized in the financial statements. Cause: Year-end cut-off procedures for some accounts were not fully completed. Effect: • Internal financial records were not accurate. Recommendations: • We recommend that management complete reconciliation processes to ensure recognition of financial activity in the appropriate period. Views of Responsible Officials: Management acknowledges the recommendation and has started implementing controls consistent with the recommendation.
Description: Year-End Cut-Off Procedures Criteria: The Committee of Sponsoring Organizations of the Treadway Commission issued its updated Internal Control – Integrated Framework in May 2013. It defines internal control as, “a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance.” Condition: We noted the following conditions: • Invoices related to the year under audit were not accrued in the appropriate time period. • Revenues from two grants for which conditional terms were met were not recognized in the financial statements. Cause: Year-end cut-off procedures for some accounts were not fully completed. Effect: • Internal financial records were not accurate. Recommendations: • We recommend that management complete reconciliation processes to ensure recognition of financial activity in the appropriate period. Views of Responsible Officials: Management acknowledges the recommendation and has started implementing controls consistent with the recommendation.
Description: Year-End Cut-Off Procedures Criteria: The Committee of Sponsoring Organizations of the Treadway Commission issued its updated Internal Control – Integrated Framework in May 2013. It defines internal control as, “a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance.” Condition: We noted the following conditions: • Invoices related to the year under audit were not accrued in the appropriate time period. • Revenues from two grants for which conditional terms were met were not recognized in the financial statements. Cause: Year-end cut-off procedures for some accounts were not fully completed. Effect: • Internal financial records were not accurate. Recommendations: • We recommend that management complete reconciliation processes to ensure recognition of financial activity in the appropriate period. Views of Responsible Officials: Management acknowledges the recommendation and has started implementing controls consistent with the recommendation.
Description: Year-End Cut-Off Procedures Criteria: The Committee of Sponsoring Organizations of the Treadway Commission issued its updated Internal Control – Integrated Framework in May 2013. It defines internal control as, “a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance.” Condition: We noted the following conditions: • Invoices related to the year under audit were not accrued in the appropriate time period. • Revenues from two grants for which conditional terms were met were not recognized in the financial statements. Cause: Year-end cut-off procedures for some accounts were not fully completed. Effect: • Internal financial records were not accurate. Recommendations: • We recommend that management complete reconciliation processes to ensure recognition of financial activity in the appropriate period. Views of Responsible Officials: Management acknowledges the recommendation and has started implementing controls consistent with the recommendation.