FAC Explorer

Audit 351077

FY End
2024-06-30
Total Expended
$1.00M
Findings
2
Programs
1
Organization: Philadelphia Youth Basketball, Inc. (PA)
Year: 2024 Accepted: 2025-03-31
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
544404 2024-002 Material Weakness - I
1120846 2024-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $1.00M Yes 1

Contacts

Name Title Type
VNAKW1M6MYG6 Thomas Faulstich Auditee
2675199209 Marie Decicco Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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. De Minimis Rate Used: N Rate Explanation: The Entity has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Philadelphia Youth Basketball, Inc. and Affiliates (collectively, the Organization) under programs of the federal government for the year ended June 30, 2024. The 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Summary of Significant Accounting Policies 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. De Minimis Rate Used: N Rate Explanation: The Entity has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. 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.
Title: Indirect Cost Rate 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. De Minimis Rate Used: N Rate Explanation: The Entity has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The Organization has elected not to use the 10% de minimis cost rate under the Uniform Guidance.

Finding Details

Finding 2024-002
Finding No. 2024-002: Procurement – Material Weakness in Internal Control Over Compliance Agency: U.S. Department of Housing and Urban Development ALN: 14.251 Federal Award Identification Number: B-22-CP-PA-0807 Criteria: According to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 200.213, non-federal entities are prohibited from contracting with or making subawards to parties that are suspended or debarred. The non-federal entity must verify that the contractor or subrecipient is not suspended or debarred through the System for Award Management (SAM), which includes reviewing the Excluded Parties List System (EPLS), or by collecting a certification from the entity. In addition, the Organization must conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR section 200.319. Condition and Context: We tested two vendors as part of procurement testing. The Organization failed to perform the required search for suspension and debarment in SAM for both vendors. The search should have been performed to ensure that the contractors were not suspended or debarred. For one of the two vendors tested, the Organization did not conduct a full and open competition for the services provided prior to awarding a contract under the federal program. Cause: The Organization has a procurement policy. However, for the one vendor that did not go through a competitive bidding process, the Organization did not follow that policy. The selection was based on relationship, qualifications, and competitive fee. Repeat Finding: No Recommendation: We recommend that the Organization implement and adhere to a strict protocol for verifying suspension and debarment status and conduct an open and competitive bidding process prior to awarding any contracts or subawards under federal programs. We also recommend that suspension and debarment be included in the Organization’s procurement policy. In addition, the Organization should maintain documentation of the results of the searches, and the competitive bidding process and results to be in compliance.   Views of Responsible Officials and Planned Corrective Action: See attached corrective action plan. Questioned Costs: None
Finding 2024-002
Finding No. 2024-002: Procurement – Material Weakness in Internal Control Over Compliance Agency: U.S. Department of Housing and Urban Development ALN: 14.251 Federal Award Identification Number: B-22-CP-PA-0807 Criteria: According to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 200.213, non-federal entities are prohibited from contracting with or making subawards to parties that are suspended or debarred. The non-federal entity must verify that the contractor or subrecipient is not suspended or debarred through the System for Award Management (SAM), which includes reviewing the Excluded Parties List System (EPLS), or by collecting a certification from the entity. In addition, the Organization must conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR section 200.319. Condition and Context: We tested two vendors as part of procurement testing. The Organization failed to perform the required search for suspension and debarment in SAM for both vendors. The search should have been performed to ensure that the contractors were not suspended or debarred. For one of the two vendors tested, the Organization did not conduct a full and open competition for the services provided prior to awarding a contract under the federal program. Cause: The Organization has a procurement policy. However, for the one vendor that did not go through a competitive bidding process, the Organization did not follow that policy. The selection was based on relationship, qualifications, and competitive fee. Repeat Finding: No Recommendation: We recommend that the Organization implement and adhere to a strict protocol for verifying suspension and debarment status and conduct an open and competitive bidding process prior to awarding any contracts or subawards under federal programs. We also recommend that suspension and debarment be included in the Organization’s procurement policy. In addition, the Organization should maintain documentation of the results of the searches, and the competitive bidding process and results to be in compliance.   Views of Responsible Officials and Planned Corrective Action: See attached corrective action plan. Questioned Costs: None