FAC Explorer

Audit 359527

FY End
2024-06-30
Total Expended
$953,286
Findings
4
Programs
1
Organization: The Nazareth Project, Inc. (PA)
Year: 2024 Accepted: 2025-06-23
Auditor: Bertz Hess & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565819 2024-002 Material Weakness - C
565820 2024-001 Significant Deficiency - P
1142261 2024-002 Material Weakness - C
1142262 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
98.006 Foreign Assistance to American Schools and Hospitals Abroad (asha) $953,286 Yes 2

Contacts

Name Title Type
UZZKQGZKHAG2 Howard Good Auditee
7172901800 Laura Bender Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Nazareth Project, Inc., has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of The Nazareth Project, Inc., under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 Nazareth Project, Inc., it is not intended to and does not present the financial position, activities and changes in net assets, functional expenses or cash flows of The Nazareth Project, Inc..
Title: NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Nazareth Project, Inc., has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 3: FOREIGN ASSISTANCE TO AMERICAN SCHOOLS AND HOSPITALS ABROAD PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Nazareth Project, Inc., has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures incurred under the Foreign Assistance to American Schools and Hospitals Abroad federal award program during the year ended June 30, 2024, are included in the federal expenditures presented in the schedule of expenditures of federal awards. Such expenditures incurred during the year totaled $953,286.
Title: NOTE 4: INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Nazareth Project, Inc., has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Nazareth Project, Inc., has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
Criteria: Grant funds reimbursed to The Nazareth Project, Inc. (the "Organization") under the Foreign Assistance to American Schools and Hospitals Abroad program are remitted to the Nazareth Hospital (the subrecipient) within two business days. Condition: The Organization received a grant reimbursement on September 15, 2023, but remitted those funds to the subrecipient on September 26, 2023. Cause of Condition: The Organization's Executive Director was not monitoring the bank account where the Organization receives its federal award funds because he expected a longer lag time between application for reimbursement and receipt of the funds. Potential Effect of Condition: Noncompliance with the Cash Management requirements of the program. Recommendation: The Organization should monitor its bank account daily after application for reimbursement under the federal award program until funds are received to ensure timely remittance. Questioned Costs: None
Finding 2024-001
Criteria: Grant expenditures under the American Schools and Hospitals Abroad (ASHA) program are recognized in the period incurred as required under the accrual basis of accounting. Condition: The Nazareth Project, Inc. (the "Organization"), applied in August 2024 for reimbursement of expenses incurred under the ASHA grant. The Organization recorded grant revenue and a related grant receivable for the amount incurred during the year ended June 30, 2024, but failed to recognize the matching expense and the related liability in the amount of $741,559. Context: We conducted a search for unrecorded liabilities by examining a sample of The Nazareth Project, Inc.'s cash disbursements subsequent to the end of the fiscal year and investigated whether disbursements for expenses incurred during the fiscal year were included in the the expenses for that year on the Nazareth Project, Inc.'s statement of activities and other changes in net assets. Potential Effect of Condition: There is a risk that the failure to record expenses when incurred will cause the financial statements and the schedule of expenditures of federal awards to be materially misstated. Recommendation: The Organization should record all expenditures presented for reimbursement under a federal grant sorted by the period in which those expenditures are incurred, and verify that grant revenues and expenditures and the related receivables and liabilities all equal the total expenditures incurred for the period. Questioned Costs: None
Finding 2024-002
Criteria: Grant funds reimbursed to The Nazareth Project, Inc. (the "Organization") under the Foreign Assistance to American Schools and Hospitals Abroad program are remitted to the Nazareth Hospital (the subrecipient) within two business days. Condition: The Organization received a grant reimbursement on September 15, 2023, but remitted those funds to the subrecipient on September 26, 2023. Cause of Condition: The Organization's Executive Director was not monitoring the bank account where the Organization receives its federal award funds because he expected a longer lag time between application for reimbursement and receipt of the funds. Potential Effect of Condition: Noncompliance with the Cash Management requirements of the program. Recommendation: The Organization should monitor its bank account daily after application for reimbursement under the federal award program until funds are received to ensure timely remittance. Questioned Costs: None
Finding 2024-001
Criteria: Grant expenditures under the American Schools and Hospitals Abroad (ASHA) program are recognized in the period incurred as required under the accrual basis of accounting. Condition: The Nazareth Project, Inc. (the "Organization"), applied in August 2024 for reimbursement of expenses incurred under the ASHA grant. The Organization recorded grant revenue and a related grant receivable for the amount incurred during the year ended June 30, 2024, but failed to recognize the matching expense and the related liability in the amount of $741,559. Context: We conducted a search for unrecorded liabilities by examining a sample of The Nazareth Project, Inc.'s cash disbursements subsequent to the end of the fiscal year and investigated whether disbursements for expenses incurred during the fiscal year were included in the the expenses for that year on the Nazareth Project, Inc.'s statement of activities and other changes in net assets. Potential Effect of Condition: There is a risk that the failure to record expenses when incurred will cause the financial statements and the schedule of expenditures of federal awards to be materially misstated. Recommendation: The Organization should record all expenditures presented for reimbursement under a federal grant sorted by the period in which those expenditures are incurred, and verify that grant revenues and expenditures and the related receivables and liabilities all equal the total expenditures incurred for the period. Questioned Costs: None