FAC Explorer

Audit 357905

FY End
2024-09-30
Total Expended
$87.22M
Findings
2
Programs
1
Organization: Civil Air Patrol (AL)
Year: 2024 Accepted: 2025-06-03
Auditor: Warren Averett LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
563618 2024-002 - - L
1140060 2024-002 - - L

Programs

ALN Program Spent Major Findings
12.840 Civil Air Patrol Program $87.22M Yes 1

Contacts

Name Title Type
HFM2BAAM8Q54 Stacy A Jackson Auditee
3349537748 Rick Blanton Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Civil Air Patrol (CAP) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in the Schedule is presented in accordance with the provisions of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Civil Air Patrol (CAP) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in the Schedule is presented in accordance with the provisions of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements.
Title: REPORTING ENTITY Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Civil Air Patrol (CAP) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in the Schedule is presented in accordance with the provisions of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Civil Air Patrol’s reporting entity is fully described in Note 1 to the consolidated financial statements. The financial reporting entity includes the National Headquarters and the Regions, Wings and Units below Wing level.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Civil Air Patrol (CAP) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in the Schedule is presented in accordance with the provisions of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Civil Air Patrol did not provide federal awards to any subrecipients during the year ended September 30, 2024.
Title: PROGRAM INCOME Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Civil Air Patrol (CAP) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in the Schedule is presented in accordance with the provisions of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. In accordance with the terms of the Cooperative Agreement with the United States Air Force, $2,358,475 in program income earned during 2024 was added to funding committed by the Government and was used by Civil Air Patrol to further eligible program objectives.
Title: INDIRECT COST RATES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Civil Air Patrol (CAP) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in the Schedule is presented in accordance with the provisions of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Civil Air Patrol did not elect to charge a de minimis cost rate of 10% for federal awards.

Finding Details

Finding 2024-002
Information on the federal program: United States Airforce, Assistance listing # 12.840 Civil Air Patrol Program Criteria: 2 CFR 200.312(a) establishes that the recipient must submit an inventory listing of federally owned property in its custody to the federal agency on an annual basis. Condition: The Tangible Personal Property Report (SF-428) requires the recipient to submit an inventory listing of federally owned property in its custody to the federal agency annually. CAP provides the required listing from its ORMS database. Two of the items tested within the report were owned by CAP and not federally owned. Ownership was properly reflected in Navision and incorrectly reflected in ORMS. Cause: An incorrect source funding code was assigned in ORMS. This assignment was not subject to an effective review. Effect: CAP was not in compliance with all applicable reporting requirements. Questioned Costs: None reported. Recommendation: We recommend CAP strengthen its policies and procedures surrounding grant reporting to include a review of each component of CAP’s equipment management system for accuracy with respect to title holder and funding source code. All updates to a component of the system should be reviewed for accuracy by someone other than the preparer. Comparative reports between the components of the system for title holder and funding source code should be included in the annual reconciliation process. These reports should be generated before and after the reconciliation process to ensure the identified activity was posted correctly. All reports should be reviewed and approved by someone other than the preparer. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan included at the end of the report.
Finding 2024-002
Information on the federal program: United States Airforce, Assistance listing # 12.840 Civil Air Patrol Program Criteria: 2 CFR 200.312(a) establishes that the recipient must submit an inventory listing of federally owned property in its custody to the federal agency on an annual basis. Condition: The Tangible Personal Property Report (SF-428) requires the recipient to submit an inventory listing of federally owned property in its custody to the federal agency annually. CAP provides the required listing from its ORMS database. Two of the items tested within the report were owned by CAP and not federally owned. Ownership was properly reflected in Navision and incorrectly reflected in ORMS. Cause: An incorrect source funding code was assigned in ORMS. This assignment was not subject to an effective review. Effect: CAP was not in compliance with all applicable reporting requirements. Questioned Costs: None reported. Recommendation: We recommend CAP strengthen its policies and procedures surrounding grant reporting to include a review of each component of CAP’s equipment management system for accuracy with respect to title holder and funding source code. All updates to a component of the system should be reviewed for accuracy by someone other than the preparer. Comparative reports between the components of the system for title holder and funding source code should be included in the annual reconciliation process. These reports should be generated before and after the reconciliation process to ensure the identified activity was posted correctly. All reports should be reviewed and approved by someone other than the preparer. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan included at the end of the report.