FAC Explorer

Audit 36296

FY End
2022-01-31
Total Expended
$8.79M
Findings
2
Programs
3
Organization: Bear River Head Start (UT)
Year: 2022 Accepted: 2022-10-26
Auditor: Rudd & Company PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37018 2022-001 - - AB
613460 2022-001 - - AB

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $90,792 - 0
10.558 Child and Adult Care Food Program $41,204 - 0
93.600 Head Start $7,628 Yes 0

Contacts

Name Title Type
WKVSYL195UH6 Diana Cannell Auditee
4357703299 Preston Roberts Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Significant Accounting PoliciesBasis of AccountingThe information in the Schedule is presented in accordance with Uniform Guidance. The Schedule is prepared using the same accounting policies and basis of accounting as the basic financial statements.Assistance Listing NumbersUniform Guidance requires the Schedule to show the total expenditures for each of the entitys federal financial assistance programs as identified in the Assistance Listing Catalog. The Assistance Listing Catalog is a government-wide compendium of individual federal programs. Each program included in the Assistance Listing Catalog is assigned a five digit program identification number.Major ProgramsUniform Guidance establishes a risk-based approach to determining which federal programs are major programs. The federal award tested as a major program was with the Assistance Listing number of 93.600.Matching CostsThe Schedule does not include matching expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
2022-01 ? Unallowed Payroll Expenditures Criteria: Compliance Requirement B relating to Allowable Costs requires costs to meet general criteria for allowability, including being necessary and reasonable for the performance of the federal award, allocable thereto and adequately documented. Condition: A supervisor authorized excess time for maintenance employees that was not worked. Context: Excessive hours were questioned by board members and upper management. Management reviewed maintenance jobs and estimated hours to complete to determine the magnitude of unallowed expenditures. Cause: The supervisor was motivated to keep maintenance employees, because they were reliable and did good work. She felt justified, because if the funds were not spent, they were lost. The opportunity existed only with collusion between the supervisor and the employees. Effect: Federal funds were used to pay fraudulent payroll expenses. Estimated excess payments/questions costs are between $10,000 and $40,000 over three years, with no more than $20,000 occurring in FY 2022.
Finding 2022-001
2022-01 ? Unallowed Payroll Expenditures Criteria: Compliance Requirement B relating to Allowable Costs requires costs to meet general criteria for allowability, including being necessary and reasonable for the performance of the federal award, allocable thereto and adequately documented. Condition: A supervisor authorized excess time for maintenance employees that was not worked. Context: Excessive hours were questioned by board members and upper management. Management reviewed maintenance jobs and estimated hours to complete to determine the magnitude of unallowed expenditures. Cause: The supervisor was motivated to keep maintenance employees, because they were reliable and did good work. She felt justified, because if the funds were not spent, they were lost. The opportunity existed only with collusion between the supervisor and the employees. Effect: Federal funds were used to pay fraudulent payroll expenses. Estimated excess payments/questions costs are between $10,000 and $40,000 over three years, with no more than $20,000 occurring in FY 2022.