FAC Explorer

Audit 361667

FY End
2023-12-31
Total Expended
$2.62M
Findings
6
Programs
4
Organization: Leap Social Enterprise INC (NJ)
Year: 2023 Accepted: 2025-07-08
Auditor: De Angel & Compañia CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
570639 2023-001 Significant Deficiency - C
570640 2023-002 Significant Deficiency Yes P
570641 2023-002 Significant Deficiency Yes P
1147081 2023-001 Significant Deficiency - C
1147082 2023-002 Significant Deficiency Yes P
1147083 2023-002 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.11M Yes 1
84.282 Charter Schools $853,284 Yes 2
10.559 Summer Food Service Program for Children $646,670 - 0
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $12,730 - 0

Contacts

Name Title Type
XHNWPW3M7TV5 Yusein Durakok Auditee
8562256680 CPA Carlos De Angel Ramirez Auditor
No contacts on file

Notes to SEFA

Title: SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARDS REPORTING Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards ("the Schedule") includes the federal award activity of Leap Social Enterprise, Inc. ("the Institution") under programs of the federal government for the year ended December 31, 2023. 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 Institution, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Entity. The financial information for the schedule is taken from the Entity's books, records, and financial statements. The amounts, however, may not agree with the amounts in the Federal Financial Reports. SUMMARY OF SIGNIFICANT 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, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited to reimbursement. a. The Schedule is prepared from the Institution’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Institution in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America (US GAAP). c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditure may or may not be allowable or may be limited as to reimbursement De Minimis Rate Used: N Rate Explanation: N/A The information included in the Schedule may not fully agree with other federal awards reports, submitted directly to federal grantor agencies because, among other reasons, the award report may (a) be prepared for a different fiscal period and (b) include cumulative data (from prior years) rather than data from the current year onl
Title: MAJOR FEDERAL PROGRAMS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards ("the Schedule") includes the federal award activity of Leap Social Enterprise, Inc. ("the Institution") under programs of the federal government for the year ended December 31, 2023. 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 Institution, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Entity. The financial information for the schedule is taken from the Entity's books, records, and financial statements. The amounts, however, may not agree with the amounts in the Federal Financial Reports. SUMMARY OF SIGNIFICANT 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, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited to reimbursement. a. The Schedule is prepared from the Institution’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Institution in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America (US GAAP). c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditure may or may not be allowable or may be limited as to reimbursement De Minimis Rate Used: N Rate Explanation: N/A Major programs are identified in the Summary of Auditors’ Results Section in the Schedule of Findings and Questioned Costs. Federal programs are presented by federal agencies.
Title: ASSISTANCE LISTING NUMBERS ("ALN" Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards ("the Schedule") includes the federal award activity of Leap Social Enterprise, Inc. ("the Institution") under programs of the federal government for the year ended December 31, 2023. 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 Institution, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Entity. The financial information for the schedule is taken from the Entity's books, records, and financial statements. The amounts, however, may not agree with the amounts in the Federal Financial Reports. SUMMARY OF SIGNIFICANT 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, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited to reimbursement. a. The Schedule is prepared from the Institution’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Institution in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America (US GAAP). c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditure may or may not be allowable or may be limited as to reimbursement De Minimis Rate Used: N Rate Explanation: N/A Assistance Listing Number ("ALN") included in the Schedule are determined based on the program name, review of grant contract information and the public description of federal assistance listings published by the U.S. Government on sam.gov. The first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence.
Title: RELATIONSHIP TO THE STATEMENT OF ACTIVITIES Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards ("the Schedule") includes the federal award activity of Leap Social Enterprise, Inc. ("the Institution") under programs of the federal government for the year ended December 31, 2023. 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 Institution, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Entity. The financial information for the schedule is taken from the Entity's books, records, and financial statements. The amounts, however, may not agree with the amounts in the Federal Financial Reports. SUMMARY OF SIGNIFICANT 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, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited to reimbursement. a. The Schedule is prepared from the Institution’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Institution in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America (US GAAP). c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditure may or may not be allowable or may be limited as to reimbursement De Minimis Rate Used: N Rate Explanation: N/A The reconciliation of expenses in the Statement of Activities and Changes in Net Assets to the total expenditures of federal awards in the Schedule of Expenditures of Federal Awards is as follows: Expenses per Statements of Activities and Changes in Net Assets $ 6,805,473 Less: Unrestricted Funds Expenditures (Non-Federal) (4,322,639) Depreciation Expense in Federal Programs (282,865) Plus: Federal Capitalized Expenses 423,766 Total Expenditures of Federal Awards in the Schedule of Expenditures of Federal Awards $ 2,623,735
Title: MATCHING COSTS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards ("the Schedule") includes the federal award activity of Leap Social Enterprise, Inc. ("the Institution") under programs of the federal government for the year ended December 31, 2023. 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 Institution, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Entity. The financial information for the schedule is taken from the Entity's books, records, and financial statements. The amounts, however, may not agree with the amounts in the Federal Financial Reports. SUMMARY OF SIGNIFICANT 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, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited to reimbursement. a. The Schedule is prepared from the Institution’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Institution in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America (US GAAP). c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditure may or may not be allowable or may be limited as to reimbursement De Minimis Rate Used: N Rate Explanation: N/A Matching costs, such as the nonfederal share of certain programs costs not borne by the Federal Government, are not included in the Schedule
Title: PASS-THROUGH AWARDS TO SUBRECIPIENTS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards ("the Schedule") includes the federal award activity of Leap Social Enterprise, Inc. ("the Institution") under programs of the federal government for the year ended December 31, 2023. 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 Institution, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Entity. The financial information for the schedule is taken from the Entity's books, records, and financial statements. The amounts, however, may not agree with the amounts in the Federal Financial Reports. SUMMARY OF SIGNIFICANT 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, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited to reimbursement. a. The Schedule is prepared from the Institution’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Institution in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America (US GAAP). c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditure may or may not be allowable or may be limited as to reimbursement De Minimis Rate Used: N Rate Explanation: N/A For the year ended December 31, 2023, there were no awards passed through to subrecipients.
Title: SUBSEQUENT EVENT Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards ("the Schedule") includes the federal award activity of Leap Social Enterprise, Inc. ("the Institution") under programs of the federal government for the year ended December 31, 2023. 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 Institution, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Entity. The financial information for the schedule is taken from the Entity's books, records, and financial statements. The amounts, however, may not agree with the amounts in the Federal Financial Reports. SUMMARY OF SIGNIFICANT 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, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited to reimbursement. a. The Schedule is prepared from the Institution’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Institution in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America (US GAAP). c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditure may or may not be allowable or may be limited as to reimbursement De Minimis Rate Used: N Rate Explanation: N/A On January 27, 2025, the OMB of the United States Federal Government instituted a pause (freeze) on the disbursement of federal grant and loan funds, which became effective on January 28, 2025. The extent to which the funding freeze impacts our operations, financial results, and cash flows, both current and future, will depend on future developments, which are highly uncertain and cannot be predicted with any measure of certainty or probabilit

Finding Details

Finding 2023-001
Finding No. 2023–001 - CASH MANAGEMENT Name of Federal Agency U.S. Department of Education Pass-through the Puerto Rico Department of Education Federal Programs Charter Schools Assistance Listing Numbers 84.282 Category Significant Deficiency Compliance / Internal control Compliance Requirements Cash Management Criteria According to the 2 CFR 200.305(b) For recipients and subrecipients other than States, payment methods must minimize the time elapsing between the transfer of funds from the Federal agency or the passthrough entity and the disbursement of funds by the recipient or subrecipient regardless of whether the payment is made by electronic funds transfer or by other means. According to the 2 CFR 200.305(b) (2)The recipient or subrecipient must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the recipient or subrecipient, and financial management systems that meet the standards for fund control and accountability as established in this part. Advance payments to a recipient or subrecipient must be limited to the minimum amounts needed and be timed with actual, immediate cash requirements of the recipient or subrecipient in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the recipient or subrecipient for direct program or project costs and the proportionate share of any allowable indirect costs. The recipient or subrecipient must make timely payments to contractors in accordance with the contract provisions. Condition During our audit procedures, we found the following instances on which the Institution did not disbursed funds in an expedite matter: Fund Sample Selected Instances Average of Days Late 84.282 11 Two (2) 10 to 15 days Cause The delay in disbursements responds to several situations: remote work, lack of banking or information from suppliers, multiplicity of tasks under the responsibility of the CFO, which affected the dates of sending the payments. Effect As a result of this condition, the U.S. Department of Education and /or Puerto Rico Department of Education may issue warnings and/or impose penalties to the Institution.-34- Questioned Cost None Recommendation The management of the Institution should reinforce its cash management procedures and internal controls to ensure the disbursement of funds in the required time frame. Views of Responsible Officials of the Auditee The management of the Institution agrees with this finding. Responsible Person Yusein Duarakov Business Administration
Finding 2023-002
Finding No. 2023-002 – DATA COLLECTION FORM DUE DATES Name of Federal Agency U.S. Department of Education Pass-through the Puerto Rico Department of Education Federal Programs American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) Charter Schools Assistance Listing Number 84.282 84.425U Category Significant Deficiency Compliance/Internal Control Compliance Requirements Reporting Criteria Uniform Guidance, Part 200.512 (1) established the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize an extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form and Single Audit reporting package were not submitted within nine (9) months after the end of the audit period. Cause and Effect Information to complete the financial statements audit procedures was not available within the required period. Data collection form and single audit report were not submitted in a timely manner as required by the Uniform Guidance. A similar audit finding was reported during the prior audit (2022-004). Questioned Cost None Recommendation Data collection from and single audit package shall be submitted within the required due dates. Views of Responsible Officials The management of the Institution agrees with this finding. Responsible Person Yusein Duarakov Business Administration
Finding 2023-002
Finding No. 2023-002 – DATA COLLECTION FORM DUE DATES Name of Federal Agency U.S. Department of Education Pass-through the Puerto Rico Department of Education Federal Programs American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) Charter Schools Assistance Listing Number 84.282 84.425U Category Significant Deficiency Compliance/Internal Control Compliance Requirements Reporting Criteria Uniform Guidance, Part 200.512 (1) established the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize an extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form and Single Audit reporting package were not submitted within nine (9) months after the end of the audit period. Cause and Effect Information to complete the financial statements audit procedures was not available within the required period. Data collection form and single audit report were not submitted in a timely manner as required by the Uniform Guidance. A similar audit finding was reported during the prior audit (2022-004). Questioned Cost None Recommendation Data collection from and single audit package shall be submitted within the required due dates. Views of Responsible Officials The management of the Institution agrees with this finding. Responsible Person Yusein Duarakov Business Administration
Finding 2023-001
Finding No. 2023–001 - CASH MANAGEMENT Name of Federal Agency U.S. Department of Education Pass-through the Puerto Rico Department of Education Federal Programs Charter Schools Assistance Listing Numbers 84.282 Category Significant Deficiency Compliance / Internal control Compliance Requirements Cash Management Criteria According to the 2 CFR 200.305(b) For recipients and subrecipients other than States, payment methods must minimize the time elapsing between the transfer of funds from the Federal agency or the passthrough entity and the disbursement of funds by the recipient or subrecipient regardless of whether the payment is made by electronic funds transfer or by other means. According to the 2 CFR 200.305(b) (2)The recipient or subrecipient must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the recipient or subrecipient, and financial management systems that meet the standards for fund control and accountability as established in this part. Advance payments to a recipient or subrecipient must be limited to the minimum amounts needed and be timed with actual, immediate cash requirements of the recipient or subrecipient in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the recipient or subrecipient for direct program or project costs and the proportionate share of any allowable indirect costs. The recipient or subrecipient must make timely payments to contractors in accordance with the contract provisions. Condition During our audit procedures, we found the following instances on which the Institution did not disbursed funds in an expedite matter: Fund Sample Selected Instances Average of Days Late 84.282 11 Two (2) 10 to 15 days Cause The delay in disbursements responds to several situations: remote work, lack of banking or information from suppliers, multiplicity of tasks under the responsibility of the CFO, which affected the dates of sending the payments. Effect As a result of this condition, the U.S. Department of Education and /or Puerto Rico Department of Education may issue warnings and/or impose penalties to the Institution.-34- Questioned Cost None Recommendation The management of the Institution should reinforce its cash management procedures and internal controls to ensure the disbursement of funds in the required time frame. Views of Responsible Officials of the Auditee The management of the Institution agrees with this finding. Responsible Person Yusein Duarakov Business Administration
Finding 2023-002
Finding No. 2023-002 – DATA COLLECTION FORM DUE DATES Name of Federal Agency U.S. Department of Education Pass-through the Puerto Rico Department of Education Federal Programs American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) Charter Schools Assistance Listing Number 84.282 84.425U Category Significant Deficiency Compliance/Internal Control Compliance Requirements Reporting Criteria Uniform Guidance, Part 200.512 (1) established the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize an extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form and Single Audit reporting package were not submitted within nine (9) months after the end of the audit period. Cause and Effect Information to complete the financial statements audit procedures was not available within the required period. Data collection form and single audit report were not submitted in a timely manner as required by the Uniform Guidance. A similar audit finding was reported during the prior audit (2022-004). Questioned Cost None Recommendation Data collection from and single audit package shall be submitted within the required due dates. Views of Responsible Officials The management of the Institution agrees with this finding. Responsible Person Yusein Duarakov Business Administration
Finding 2023-002
Finding No. 2023-002 – DATA COLLECTION FORM DUE DATES Name of Federal Agency U.S. Department of Education Pass-through the Puerto Rico Department of Education Federal Programs American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) Charter Schools Assistance Listing Number 84.282 84.425U Category Significant Deficiency Compliance/Internal Control Compliance Requirements Reporting Criteria Uniform Guidance, Part 200.512 (1) established the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize an extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form and Single Audit reporting package were not submitted within nine (9) months after the end of the audit period. Cause and Effect Information to complete the financial statements audit procedures was not available within the required period. Data collection form and single audit report were not submitted in a timely manner as required by the Uniform Guidance. A similar audit finding was reported during the prior audit (2022-004). Questioned Cost None Recommendation Data collection from and single audit package shall be submitted within the required due dates. Views of Responsible Officials The management of the Institution agrees with this finding. Responsible Person Yusein Duarakov Business Administration