FAC Explorer

Audit 351736

FY End
2024-06-30
Total Expended
$1.16M
Findings
2
Programs
6
Organization: First Step, Inc. (AR)
Year: 2024 Accepted: 2025-03-31
Auditor: Ellis & Moore PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547534 2024-001 Significant Deficiency Yes H
1123976 2024-001 Significant Deficiency Yes H

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $601,894 - 0
21.019 Coronavirus Relief Fund $474,775 Yes 1
93.575 Child Care and Development Block Grant $31,400 - 0
84.187 Supported Employment Services for Individuals with the Most Significant Disabilities $22,100 - 0
10.555 National School Lunch Program $17,097 - 0
10.565 Commodity Supplemental Food Program $13,097 - 0

Contacts

Name Title Type
CSM5JNPA5AK5 Chris Smith Auditee
5016205588 Courtney Moore Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: First Step, Inc. has elected not to use the 10% de minimus indirect cost rate as allowed under the uniform guidance. Expenditures reported on the schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 2 - BASIS OF ACCOUNTING Accounting Policies: Expenditures reported on the schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: First Step, Inc. has elected not to use the 10% de minimus indirect cost rate as allowed under the uniform guidance. The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activities of the Organization and are presented on the accrual basis of accounting. The information in the schedules 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 schedules present only a selected portion of the operations of the Organization, they are not intended to and DO not present the financial position, changes in net assets or cash flows.
Title: NOTE 3 - FEDERAL INDIRECT RATE Accounting Policies: Expenditures reported on the schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: First Step, Inc. has elected not to use the 10% de minimus indirect cost rate as allowed under the uniform guidance. First Step, Inc. has elected not to use the 10% de minimus indirect cost rate as allowed under the uniform guidance.

Finding Details

Finding 2024-001
2024-001, Failure to comply with grant time-based requirements U.S. Department of Treasury - ALN: 21.019 Coronavirus Relief Funds Known and likely questioned costs: $910 Condition: During audit testing it was found that 13 payments were made to employees before their eligibility timeframe, as per the grant agreement, resulting in overpayment to employees and departure from grant compliance requirement, "allowable costs". Criteria: ARPA grant agreement states employees must have worked 30 calendar days before receiving their hiring bonus, and 6 continuous months (182 days) before receiving their retention bonus. Cause: The payment and tracking spreadsheet is manually maintained and not reviewed by a second employee. Effect: Non-compliance with grant contract. Recommendation: None. The program has ended. Management Response: All funds have been expended, program has ended.
Finding 2024-001
2024-001, Failure to comply with grant time-based requirements U.S. Department of Treasury - ALN: 21.019 Coronavirus Relief Funds Known and likely questioned costs: $910 Condition: During audit testing it was found that 13 payments were made to employees before their eligibility timeframe, as per the grant agreement, resulting in overpayment to employees and departure from grant compliance requirement, "allowable costs". Criteria: ARPA grant agreement states employees must have worked 30 calendar days before receiving their hiring bonus, and 6 continuous months (182 days) before receiving their retention bonus. Cause: The payment and tracking spreadsheet is manually maintained and not reviewed by a second employee. Effect: Non-compliance with grant contract. Recommendation: None. The program has ended. Management Response: All funds have been expended, program has ended.