FAC Explorer

Audit 362423

FY End
2024-06-30
Total Expended
$3.58M
Findings
2
Programs
6
Organization: Riverside Educational Center (CO)
Year: 2024 Accepted: 2025-07-16
Auditor: Windes INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571489 2024-001 Significant Deficiency - L
1147931 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.59M Yes 1
10.558 Child and Adult Care Food Program $366,293 - 0
84.425 Covid-19 Education Stabilization Fund $304,667 Yes 0
93.558 Temporary Assistance for Needy Families $117,886 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $95,979 - 0
84.287 Twenty-First Century Community Learning Centers $34,036 - 0

Contacts

Name Title Type
H9TJXSNPULL3 Landen Fledderjohn Auditee
9702791595 Kelly Buck Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of Riverside Educational Center dba Riverside Education Centers (the Organization). The information in the 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, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. There were no awards passed through to subrecipients.

Finding Details

Finding 2024-001
Condition: The Organization tracks grants by individual cost-centers, which allows for total revenue and total expenditures by grant to be easily identifiable. In preparation of the Schedule of Expenditures of Federal Awards (SEFA), the Organization did not include a significant grant that is sourced from federal funds and required for testing. Criteria: Section 2 CFR 200.510(b) of the Uniform Guidance requires that an auditee prepare a schedule of expenditures of federal awards, which includes individual federal programs by federal agency and total federal awards expended for each individual federal program and Assistance Listing Number. Management is responsible for establishing and maintaining an effective system of internal control to allow for complete and accurate preparation of the SEFA. Cause: The Organization received a new one-time agreement during 2024, and the granting agency did not provide sufficient information for the Organization to clarify the funds were derived from federal funds. As such, the finance team did not include the grant expenditures in the schedule of expenditures of federal awards. Effect: Inaccurate reporting of federal expenditures could result inaccurate major program determinations, risk assessments, identification of compliance requirements, and ultimately incomplete reporting of federal funds expended to granting agencies. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Findings From Prior Year: No. Recommendation: We recommend management review all new grant agreements for indicators of federal awards (such as an Assistance Listing or CFDA number, references to federal regulations, references to federal laws or bills, etc.), and communicate with granting agencies for clarity. We recommend management receive confirmation in writing from any granting agencies about the source of any grants, when there is doubt about whether a grant is federally-sourced or not. Management Response: Management agrees with the recommendation and will ensure both program and financial staff understand the importance of determining the source of new grant funds, to ensure the schedule of expenditure of federal awards is accurately prepared.
Finding 2024-001
Condition: The Organization tracks grants by individual cost-centers, which allows for total revenue and total expenditures by grant to be easily identifiable. In preparation of the Schedule of Expenditures of Federal Awards (SEFA), the Organization did not include a significant grant that is sourced from federal funds and required for testing. Criteria: Section 2 CFR 200.510(b) of the Uniform Guidance requires that an auditee prepare a schedule of expenditures of federal awards, which includes individual federal programs by federal agency and total federal awards expended for each individual federal program and Assistance Listing Number. Management is responsible for establishing and maintaining an effective system of internal control to allow for complete and accurate preparation of the SEFA. Cause: The Organization received a new one-time agreement during 2024, and the granting agency did not provide sufficient information for the Organization to clarify the funds were derived from federal funds. As such, the finance team did not include the grant expenditures in the schedule of expenditures of federal awards. Effect: Inaccurate reporting of federal expenditures could result inaccurate major program determinations, risk assessments, identification of compliance requirements, and ultimately incomplete reporting of federal funds expended to granting agencies. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Findings From Prior Year: No. Recommendation: We recommend management review all new grant agreements for indicators of federal awards (such as an Assistance Listing or CFDA number, references to federal regulations, references to federal laws or bills, etc.), and communicate with granting agencies for clarity. We recommend management receive confirmation in writing from any granting agencies about the source of any grants, when there is doubt about whether a grant is federally-sourced or not. Management Response: Management agrees with the recommendation and will ensure both program and financial staff understand the importance of determining the source of new grant funds, to ensure the schedule of expenditure of federal awards is accurately prepared.