FAC Explorer

Audit 361924

FY End
2024-06-30
Total Expended
$5.14M
Findings
4
Programs
4
Organization: Ability Connection Colorado, Inc. (CO)
Year: 2024 Accepted: 2025-07-10
Auditor: Brock and Company CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
570986 2024-001 - - P
570987 2024-001 - - P
1147428 2024-001 - - P
1147429 2024-001 - - P

Programs

ALN Program Spent Major Findings
93.600 Head Start $4.54M Yes 1
96.008 Social Security - Work Incentives Planning and Assistance Program $300,000 Yes 1
10.558 Child and Adult Care Food Program $261,839 - 0
16.276 Juvenile Mentoring Program $42,621 - 0

Contacts

Name Title Type
E2WNPKAW4PW9 Syed Ahmed Auditee
3036919339 Lee Ackerman Auditor
No contacts on file

Notes to SEFA

Title: 1 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. Ability Connection Colorado, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Ability Connection Colorado, Inc. and Subsidiaries did not pass funds through to subrecipients for the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: Ability Connection Colorado, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Ability Connection Colorado, Inc. and Subsidiaries did not pass funds through to subrecipients for the year ended June 30, 2024. The schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Ability Connection Colorado, Inc. and Subsidiaries under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The subsidiaries of Ability Connection Colorado, Inc. did not receive or expend federal funds and, accordingly, the Schedule presents only a selected portion of the operations of Ability Connection Colorado, Inc. It is not intended to and does not present the financial position, change in net assets, or cash flows of Ability Connection Colorado, Inc. and Subsidiaries.
Title: 2 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. Ability Connection Colorado, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Ability Connection Colorado, Inc. and Subsidiaries did not pass funds through to subrecipients for the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: Ability Connection Colorado, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Ability Connection Colorado, Inc. and Subsidiaries did not pass funds through to subrecipients for the year ended June 30, 2024. 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. Ability Connection Colorado, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Ability Connection Colorado, Inc. and Subsidiaries did not pass funds through to subrecipients for the year ended June 30, 2024.
Title: 3 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. Ability Connection Colorado, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Ability Connection Colorado, Inc. and Subsidiaries did not pass funds through to subrecipients for the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: Ability Connection Colorado, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Ability Connection Colorado, Inc. and Subsidiaries did not pass funds through to subrecipients for the year ended June 30, 2024. Ability Connection Colorado, Inc. and Subsidiaries receives grants from other sources in addition to its federal awards. The following analysis reconciles expenditures in the accompanying schedule to grant revenue reflected in Ability Connection Colorado, Inc. and Subsidiaries' consolidated financial statements for the year ended June 30, 2024:

Finding Details

Finding 2024-001
Information on the Federal Programs: Assistance Listing Number 93.600 - Head Start, U.S. Department of Health and Human Services and Assistance Listing Number 96.008 - Work Incentives Planning and Assistance Program, Social Security Administration Compliance Requirements: Reporting Type of Finding: Noncompliance Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance or 2 CFR Part 200), Subpart F , requires Single Audit reporting to be submitted to the Federal Audit Clearinghouse within 30 days of receiving the completed reports or nine months after the entity's fiscal year end, whichever comes first. The June 30, 2024 single audit reports were not submitted to the Federal Audit Clearinghouse on a timely basis. The Organization was in consultation with a creditor regarding issues that would have a significant impact on the accounting and disclosures in the audited financial statements. The issue was resolved subsequent to the report submission deadline. Subsequently, the independent audit firm required additional time to complete engagement documentation to issue the audit reporting package. Failure to submit the necessary audit reports on a timely basis may lead to delayed or suspended funding and Organization will not be classified as a low-risk auditee in future years. The Organization was not in compliance with covenants pertaining to financial ratios in its bond agreements, which constitute a substantial amount of debt. The Organization contacted the bond agent regarding issuance of a waiver on the covenant compliance. The bond agent did not make a determination on issuance of the covenant waiver until the deadline on submitting the financial reporting package to the Federal Audit Clearinghouse had expired. After the waiver was received, the independent auditor required time to complete the audit documentation to be able to release the financial statements and Single Audit reports. We recommend that the Organization place a greater emphasis on identifying issues that may result in delays to facilitate timely resolution of situations with parties outside the Organization's control. The Organization concurs with the finding and will take corrective actions to ensure that the financial reporting package is submitted to the Federal Audit Clearinghouse within the prescribed deadlines. The Organization has a history of timely filings.
Finding 2024-001
Information on the Federal Programs: Assistance Listing Number 93.600 - Head Start, U.S. Department of Health and Human Services and Assistance Listing Number 96.008 - Work Incentives Planning and Assistance Program, Social Security Administration Compliance Requirements: Reporting Type of Finding: Noncompliance Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance or 2 CFR Part 200), Subpart F , requires Single Audit reporting to be submitted to the Federal Audit Clearinghouse within 30 days of receiving the completed reports or nine months after the entity's fiscal year end, whichever comes first. The June 30, 2024 single audit reports were not submitted to the Federal Audit Clearinghouse on a timely basis. The Organization was in consultation with a creditor regarding issues that would have a significant impact on the accounting and disclosures in the audited financial statements. The issue was resolved subsequent to the report submission deadline. Subsequently, the independent audit firm required additional time to complete engagement documentation to issue the audit reporting package. Failure to submit the necessary audit reports on a timely basis may lead to delayed or suspended funding and Organization will not be classified as a low-risk auditee in future years. The Organization was not in compliance with covenants pertaining to financial ratios in its bond agreements, which constitute a substantial amount of debt. The Organization contacted the bond agent regarding issuance of a waiver on the covenant compliance. The bond agent did not make a determination on issuance of the covenant waiver until the deadline on submitting the financial reporting package to the Federal Audit Clearinghouse had expired. After the waiver was received, the independent auditor required time to complete the audit documentation to be able to release the financial statements and Single Audit reports. We recommend that the Organization place a greater emphasis on identifying issues that may result in delays to facilitate timely resolution of situations with parties outside the Organization's control. The Organization concurs with the finding and will take corrective actions to ensure that the financial reporting package is submitted to the Federal Audit Clearinghouse within the prescribed deadlines. The Organization has a history of timely filings.
Finding 2024-001
Information on the Federal Programs: Assistance Listing Number 93.600 - Head Start, U.S. Department of Health and Human Services and Assistance Listing Number 96.008 - Work Incentives Planning and Assistance Program, Social Security Administration Compliance Requirements: Reporting Type of Finding: Noncompliance Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance or 2 CFR Part 200), Subpart F , requires Single Audit reporting to be submitted to the Federal Audit Clearinghouse within 30 days of receiving the completed reports or nine months after the entity's fiscal year end, whichever comes first. The June 30, 2024 single audit reports were not submitted to the Federal Audit Clearinghouse on a timely basis. The Organization was in consultation with a creditor regarding issues that would have a significant impact on the accounting and disclosures in the audited financial statements. The issue was resolved subsequent to the report submission deadline. Subsequently, the independent audit firm required additional time to complete engagement documentation to issue the audit reporting package. Failure to submit the necessary audit reports on a timely basis may lead to delayed or suspended funding and Organization will not be classified as a low-risk auditee in future years. The Organization was not in compliance with covenants pertaining to financial ratios in its bond agreements, which constitute a substantial amount of debt. The Organization contacted the bond agent regarding issuance of a waiver on the covenant compliance. The bond agent did not make a determination on issuance of the covenant waiver until the deadline on submitting the financial reporting package to the Federal Audit Clearinghouse had expired. After the waiver was received, the independent auditor required time to complete the audit documentation to be able to release the financial statements and Single Audit reports. We recommend that the Organization place a greater emphasis on identifying issues that may result in delays to facilitate timely resolution of situations with parties outside the Organization's control. The Organization concurs with the finding and will take corrective actions to ensure that the financial reporting package is submitted to the Federal Audit Clearinghouse within the prescribed deadlines. The Organization has a history of timely filings.
Finding 2024-001
Information on the Federal Programs: Assistance Listing Number 93.600 - Head Start, U.S. Department of Health and Human Services and Assistance Listing Number 96.008 - Work Incentives Planning and Assistance Program, Social Security Administration Compliance Requirements: Reporting Type of Finding: Noncompliance Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance or 2 CFR Part 200), Subpart F , requires Single Audit reporting to be submitted to the Federal Audit Clearinghouse within 30 days of receiving the completed reports or nine months after the entity's fiscal year end, whichever comes first. The June 30, 2024 single audit reports were not submitted to the Federal Audit Clearinghouse on a timely basis. The Organization was in consultation with a creditor regarding issues that would have a significant impact on the accounting and disclosures in the audited financial statements. The issue was resolved subsequent to the report submission deadline. Subsequently, the independent audit firm required additional time to complete engagement documentation to issue the audit reporting package. Failure to submit the necessary audit reports on a timely basis may lead to delayed or suspended funding and Organization will not be classified as a low-risk auditee in future years. The Organization was not in compliance with covenants pertaining to financial ratios in its bond agreements, which constitute a substantial amount of debt. The Organization contacted the bond agent regarding issuance of a waiver on the covenant compliance. The bond agent did not make a determination on issuance of the covenant waiver until the deadline on submitting the financial reporting package to the Federal Audit Clearinghouse had expired. After the waiver was received, the independent auditor required time to complete the audit documentation to be able to release the financial statements and Single Audit reports. We recommend that the Organization place a greater emphasis on identifying issues that may result in delays to facilitate timely resolution of situations with parties outside the Organization's control. The Organization concurs with the finding and will take corrective actions to ensure that the financial reporting package is submitted to the Federal Audit Clearinghouse within the prescribed deadlines. The Organization has a history of timely filings.