FAC Explorer

Audit 362236

FY End
2023-12-31
Total Expended
$3.10M
Findings
12
Programs
2
Organization: Friends of the Mission (CA)
Year: 2023 Accepted: 2025-07-15
Auditor: Propp Christensen Caniglia LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571299 2023-002 Significant Deficiency - L
571300 2023-002 Significant Deficiency - L
571301 2023-002 Significant Deficiency - L
571302 2023-002 Significant Deficiency - L
571303 2023-002 Significant Deficiency - L
571304 2023-003 Significant Deficiency - L
1147741 2023-002 Significant Deficiency - L
1147742 2023-002 Significant Deficiency - L
1147743 2023-002 Significant Deficiency - L
1147744 2023-002 Significant Deficiency - L
1147745 2023-002 Significant Deficiency - L
1147746 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.56M Yes 1
14.218 Community Development Block Grants/entitlement Grants $309,809 Yes 1

Contacts

Name Title Type
DT8TMYSJ8GM3 Scott Thurmond Auditee
9164160901 Justin Gierth Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: GENERAL Accounting Policies: NOTE 2: BASIS OF ACCOUNTING The accompanying schedule of expenses of federal grant activity of the Organization is presented on the accrual basis of accounting. 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). De Minimis Rate Used: N Rate Explanation: NOTE 5: INDIRECT COST REIMBURSEMENTS The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% diminimus reimbursement rate. The Organization has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% diminimus reimbursement rate. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of Friends of the Mission (the "Organization"). All expenditures of federal financial assistance received are included in the schedule.
Title: NOTE 2: BASIS OF ACCOUNTING Accounting Policies: NOTE 2: BASIS OF ACCOUNTING The accompanying schedule of expenses of federal grant activity of the Organization is presented on the accrual basis of accounting. 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). De Minimis Rate Used: N Rate Explanation: NOTE 5: INDIRECT COST REIMBURSEMENTS The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% diminimus reimbursement rate. The Organization has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% diminimus reimbursement rate. The accompanying schedule of expenses of federal grant activity of the Organization is presented on the accrual basis of accounting. 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).
Title: NOTE 3: CLAIMS Accounting Policies: NOTE 2: BASIS OF ACCOUNTING The accompanying schedule of expenses of federal grant activity of the Organization is presented on the accrual basis of accounting. 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). De Minimis Rate Used: N Rate Explanation: NOTE 5: INDIRECT COST REIMBURSEMENTS The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% diminimus reimbursement rate. The Organization has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% diminimus reimbursement rate. The Organization has received federal grants for specific purposes that are subject to review and audit by the Federal Government. Although such audits could result in expenditure disallowances under grant terms, any required reimbursements are not expected to be material.
Title: NOTE 4: LOAN PROGRAMS Accounting Policies: NOTE 2: BASIS OF ACCOUNTING The accompanying schedule of expenses of federal grant activity of the Organization is presented on the accrual basis of accounting. 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). De Minimis Rate Used: N Rate Explanation: NOTE 5: INDIRECT COST REIMBURSEMENTS The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% diminimus reimbursement rate. The Organization has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% diminimus reimbursement rate. The Organization has entered into five separate loan agreements with the City of West Sacramento under the Neighborhood Stabilization Program administered by the Department of Housing and Urban Development (HUD) under CDFA 14.218. The following schedule presents the amount of loan balance outstanding for each of the five separate agreements as of December 31, 2023. Project January 1, 2023 December 31, 2023 Name Balance Balance Madrone $ 235,420 $ 235,420 Yolo 396,841 396,841 Manchester 366,932 366,932 Norfolk 235,367 235,367 Julian 309,809 309,809 $ 1 ,544,369 $ 1,544,369
Title: NOTE 5: INDIRECT COST REIMBURSEMENTS Accounting Policies: NOTE 2: BASIS OF ACCOUNTING The accompanying schedule of expenses of federal grant activity of the Organization is presented on the accrual basis of accounting. 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). De Minimis Rate Used: N Rate Explanation: NOTE 5: INDIRECT COST REIMBURSEMENTS The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% diminimus reimbursement rate. The Organization has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% diminimus reimbursement rate. The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% diminimus reimbursement rate. The Organization has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% diminimus reimbursement rate.

Finding Details

Finding 2023-002
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-002
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-002
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-002
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-002
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-003
Finding: 2023-003 CFDA Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: Department of Treasury/Department of Housing and Community Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria According to 2 CFR 200.510(b), the auditee must prepare a SEFA that includes all federal awards expended, listed by federal program and Assistance Listings Number, along with the total amount provided to subrecipients. The SEFA must also include notes that describe the significant accounting policies used in preparing the schedule. The expenditures must be reported on the same basis of accounting as the auditee’s financial statements. Condition During our audit of the Friends of the Mission's SEFA for the fiscal year ended December 31, 2023, we noted that the SEFA did not accurately report the total federal awards expended for the Department of Treasury, Assistance Listings Number 21.027. The SEFA understated expenditures by $612,964 from the Homekey Program. Cause The auditee’s internal controls over the preparation of the SEFA were not sufficient to ensure all federal expenditures were accurately identified and reported. Additionally, staff responsible for SEFA preparation were not fully trained on the requirements of 2 CFR 200.510(b). Effect: The inaccurate reporting of federal expenditures in the SEFA could lead to noncompliance with federal award requirements, misstatements in the single audit report, and potential delays or errors in the submission of the data collection form to the Federal Audit Clearinghouse. This may also impact the auditee’s ability to demonstrate compliance with federal regulations. Recommendations: We recommend that Friends of the Mission implement the following corrective actions: 1. Develop and document a formal process for preparing the SEFA, including procedures to identify and track all federal awards. 2. Provide training to staff responsible for SEFA preparation on the requirements of 2 CFR 200.510(b). 3. Implement a review process to ensure the SEFA is complete, accurate, and consistent with the auditee’s financial statements prior to submission. 4. Reconcile the SEFA with the general ledger and federal award records to ensure all expenditures are properly reported. Management's Response Management is aware of the finding and has taken steps to rectify the finding so that it does not repeat in future years.
Finding 2023-002
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-002
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-002
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-002
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-002
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-003
Finding: 2023-003 CFDA Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: Department of Treasury/Department of Housing and Community Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria According to 2 CFR 200.510(b), the auditee must prepare a SEFA that includes all federal awards expended, listed by federal program and Assistance Listings Number, along with the total amount provided to subrecipients. The SEFA must also include notes that describe the significant accounting policies used in preparing the schedule. The expenditures must be reported on the same basis of accounting as the auditee’s financial statements. Condition During our audit of the Friends of the Mission's SEFA for the fiscal year ended December 31, 2023, we noted that the SEFA did not accurately report the total federal awards expended for the Department of Treasury, Assistance Listings Number 21.027. The SEFA understated expenditures by $612,964 from the Homekey Program. Cause The auditee’s internal controls over the preparation of the SEFA were not sufficient to ensure all federal expenditures were accurately identified and reported. Additionally, staff responsible for SEFA preparation were not fully trained on the requirements of 2 CFR 200.510(b). Effect: The inaccurate reporting of federal expenditures in the SEFA could lead to noncompliance with federal award requirements, misstatements in the single audit report, and potential delays or errors in the submission of the data collection form to the Federal Audit Clearinghouse. This may also impact the auditee’s ability to demonstrate compliance with federal regulations. Recommendations: We recommend that Friends of the Mission implement the following corrective actions: 1. Develop and document a formal process for preparing the SEFA, including procedures to identify and track all federal awards. 2. Provide training to staff responsible for SEFA preparation on the requirements of 2 CFR 200.510(b). 3. Implement a review process to ensure the SEFA is complete, accurate, and consistent with the auditee’s financial statements prior to submission. 4. Reconcile the SEFA with the general ledger and federal award records to ensure all expenditures are properly reported. Management's Response Management is aware of the finding and has taken steps to rectify the finding so that it does not repeat in future years.