FAC Explorer

Audit 360314

FY End
2022-09-30
Total Expended
$9.38M
Findings
6
Programs
7
Organization: Community Action Partnership of Providence County (RI)
Year: 2022 Accepted: 2025-06-27
Auditor: Kahn Litwin Renza & CO LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
567969 2022-002 Material Weakness - E
567970 2022-003 Significant Deficiency Yes L
567971 2022-003 Significant Deficiency Yes L
1144411 2022-002 Material Weakness - E
1144412 2022-003 Significant Deficiency Yes L
1144413 2022-003 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.568 Low-Income Home Energy Assistance $7.63M Yes 2
93.569 Community Services Block Grant $1.37M Yes 1
14.905 Lead Hazard Reduction Demonstration Grant Program $106,766 - 0
81.042 Weatherization Assistance for Low-Income Persons $24,512 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $23,476 - 0
14.218 Community Development Block Grants/entitlement Grants $11,946 - 0
21.008 Low Income Taxpayer Clinics $10,346 - 0

Contacts

Name Title Type
LJXNQM5HNCQ7 Javaid Hassan Auditee
4012732000 Patrick Martin 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. Pass-through entity identifying numbers are presented where available. For cost-reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Community Action Partnership of Providence County (the Organization) under programs of the federal government for the year ended September 30, 2022. 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, change 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. Pass-through entity identifying numbers are presented where available. For cost-reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and therefore, is subject to the 10-percent de minimis indirect cost rate under the 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. Pass-through entity identifying numbers are presented where available. For cost-reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period
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. Pass-through entity identifying numbers are presented where available. For cost-reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. The Organization does not have a federally approved negotiated indirect cost rate agreement and therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance.
Title: Awards to Subrecipients 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. Pass-through entity identifying numbers are presented where available. For cost-reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. For the year ended September 30, 2022, the Organization did not pass through federal funds to subrecipients.

Finding Details

Finding 2022-002
Statement of Condition: During testing eligibility for the Low-Income Home Energy Assistance Program (ALN #93.568) the Organization was unable to provide documentation for three of the forty recipients selected for testing. Criteria: Organizations are required to maintain supporting documentation for all recipients receiving grant funding. In addition, there must be periodic reviews to ensure recipients still qualify for assistance. Cause: There was significant turnover within the finance department of the Organization subsequent to year-end, and prior to the start of the audit. For the selected transactions noted above, documentation, support, and records were unable to be located by the new finance team. Effect: Because the Organization was not able to provide documentation for the noted recipients, we were unable to determine whether the grants to the selected recipients were made in accordance with the applicable grant agreements. Recommendation: We recommend that the Organization strengthen its document retention and filing policies to ensure that adequate support is maintained for all recipients receiving federal grants. The Organization should also consider enhancing its accounting policies and procedures manual so that in the event of staff turnover, new employees can understand and follow those policies and procedures.
Finding 2022-003
Statement of Condition: The September 30, 2022, audited financial statements and data collection form for the Organization were not filed within the time required by Uniform Guidance. Criteria: Uniform Guidance requires that non-federal entities that expend more than $750,000 or more in a year in federal awards shall have a single audit conducted and Section .320 requires that the audit shall be completed, and the data collection form and reporting package shall be submitted within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period. Cause: The Organization’s filing process to ensure timely filing of the data collection form and the financial statements was attributed to the delay of the audit due to the turnover of staff, thus causing a delay in the submission of the required reports. Effect: Late filing of the data collection form and reporting package will cause an auditee to be determined to be a “high-risk auditee” and could affect future federal grant funding. Recommendation: We recommend the Organization improve its year-end closing processes in order to meet all filing requirements.
Finding 2022-003
Statement of Condition: The September 30, 2022, audited financial statements and data collection form for the Organization were not filed within the time required by Uniform Guidance. Criteria: Uniform Guidance requires that non-federal entities that expend more than $750,000 or more in a year in federal awards shall have a single audit conducted and Section .320 requires that the audit shall be completed, and the data collection form and reporting package shall be submitted within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period. Cause: The Organization’s filing process to ensure timely filing of the data collection form and the financial statements was attributed to the delay of the audit due to the turnover of staff, thus causing a delay in the submission of the required reports. Effect: Late filing of the data collection form and reporting package will cause an auditee to be determined to be a “high-risk auditee” and could affect future federal grant funding. Recommendation: We recommend the Organization improve its year-end closing processes in order to meet all filing requirements.
Finding 2022-002
Statement of Condition: During testing eligibility for the Low-Income Home Energy Assistance Program (ALN #93.568) the Organization was unable to provide documentation for three of the forty recipients selected for testing. Criteria: Organizations are required to maintain supporting documentation for all recipients receiving grant funding. In addition, there must be periodic reviews to ensure recipients still qualify for assistance. Cause: There was significant turnover within the finance department of the Organization subsequent to year-end, and prior to the start of the audit. For the selected transactions noted above, documentation, support, and records were unable to be located by the new finance team. Effect: Because the Organization was not able to provide documentation for the noted recipients, we were unable to determine whether the grants to the selected recipients were made in accordance with the applicable grant agreements. Recommendation: We recommend that the Organization strengthen its document retention and filing policies to ensure that adequate support is maintained for all recipients receiving federal grants. The Organization should also consider enhancing its accounting policies and procedures manual so that in the event of staff turnover, new employees can understand and follow those policies and procedures.
Finding 2022-003
Statement of Condition: The September 30, 2022, audited financial statements and data collection form for the Organization were not filed within the time required by Uniform Guidance. Criteria: Uniform Guidance requires that non-federal entities that expend more than $750,000 or more in a year in federal awards shall have a single audit conducted and Section .320 requires that the audit shall be completed, and the data collection form and reporting package shall be submitted within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period. Cause: The Organization’s filing process to ensure timely filing of the data collection form and the financial statements was attributed to the delay of the audit due to the turnover of staff, thus causing a delay in the submission of the required reports. Effect: Late filing of the data collection form and reporting package will cause an auditee to be determined to be a “high-risk auditee” and could affect future federal grant funding. Recommendation: We recommend the Organization improve its year-end closing processes in order to meet all filing requirements.
Finding 2022-003
Statement of Condition: The September 30, 2022, audited financial statements and data collection form for the Organization were not filed within the time required by Uniform Guidance. Criteria: Uniform Guidance requires that non-federal entities that expend more than $750,000 or more in a year in federal awards shall have a single audit conducted and Section .320 requires that the audit shall be completed, and the data collection form and reporting package shall be submitted within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period. Cause: The Organization’s filing process to ensure timely filing of the data collection form and the financial statements was attributed to the delay of the audit due to the turnover of staff, thus causing a delay in the submission of the required reports. Effect: Late filing of the data collection form and reporting package will cause an auditee to be determined to be a “high-risk auditee” and could affect future federal grant funding. Recommendation: We recommend the Organization improve its year-end closing processes in order to meet all filing requirements.