Audit 365136

FY End
2025-02-28
Total Expended
$2.29M
Findings
6
Programs
4
Year: 2025 Accepted: 2025-08-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
574879 2025-002 Material Weakness - A
574880 2025-002 Material Weakness - B
574881 2025-002 Material Weakness - A
1151321 2025-002 Material Weakness - A
1151322 2025-002 Material Weakness - B
1151323 2025-002 Material Weakness - A

Contacts

Name Title Type
P9AEM56WYZL5 Patti Sedberry Auditee
9409893538 Cara Hilbrich Auditor
No contacts on file

Notes to SEFA

Title: NOTE A: GENERAL Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provision of the grant and, accordingly, when such funds are received they are recorded as deferred revenue until earned. The Schedule includes all federal revenue recognized in the Aspermont Small Business Development Center, Inc.'s financial statements. De Minimis Rate Used: N Rate Explanation: The Aspermont Small Business Development Center, Inc. did not elect to use the 10 percent de minimis indirect cost rate. The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal awards of the Aspermont Small Business Development Center, Inc. The Aspermont Small Business Development Center, Inc.'s reporting entity is defined in Note 1 of the financial statements. Federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal Awards.
Title: NOTE B: BASIS OF ACCOUNTING Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provision of the grant and, accordingly, when such funds are received they are recorded as deferred revenue until earned. The Schedule includes all federal revenue recognized in the Aspermont Small Business Development Center, Inc.'s financial statements. De Minimis Rate Used: N Rate Explanation: The Aspermont Small Business Development Center, Inc. did not elect to use the 10 percent de minimis indirect cost rate. The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provision of the grant and, accordingly, when such funds are received they are recorded as deferred revenue until earned. The Schedule includes all federal revenue recognized in the Aspermont Small Business Development Center, Inc.'s financial statements. The format for the Schedule of Expenditures of Federal Awards has been prescribed by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Aspermont Small Business Development Center, Inc. did not elect to use the 10 percent de minimis indirect cost rate.
Title: NOTE C: MEDICAL TRANSPORTATION PROGRAM Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provision of the grant and, accordingly, when such funds are received they are recorded as deferred revenue until earned. The Schedule includes all federal revenue recognized in the Aspermont Small Business Development Center, Inc.'s financial statements. De Minimis Rate Used: N Rate Explanation: The Aspermont Small Business Development Center, Inc. did not elect to use the 10 percent de minimis indirect cost rate. The Organization also participates in Medical Transportation Programs that are reimbursed on a fee basis. Revenues for the year ended February 28, 2025 were $114,403 for the program under a contract with American Medical Response, $138,800 under a contract with Saferide, Inc., and 21,516 under a contract with ModivCare.
Title: NOTE D: RECONCILIATION OF TEXAS DEPARTMENT OF TRANSPORTATION GRANT REVENUE Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provision of the grant and, accordingly, when such funds are received they are recorded as deferred revenue until earned. The Schedule includes all federal revenue recognized in the Aspermont Small Business Development Center, Inc.'s financial statements. De Minimis Rate Used: N Rate Explanation: The Aspermont Small Business Development Center, Inc. did not elect to use the 10 percent de minimis indirect cost rate. The Organization expended only federal and state awards from the Texas Department of Transportation for the year ended February 28, 2025 totaling $1,356,134. Of those funds expended, $594,477 were state funds.

Finding Details

Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that helps ensure transactions are recorded timely, correctly, and in the proper reporting period, thereby providing accurate financial data. Condition: The Organization has policies and procedures in place for the review and approval of federal expenditures, however there was no documentation of their internal control system over federal award expenditures. Effect: There was no way to test the internal control system over federal award expenditures to be able to assess control risk at low. Cause: Controls were unable to be tested as there is no documentation of those controls in place. Recommendation: We recommend that finance personnel show documentation of their review and approval of invoices charged to grants. The organization should also document the review and approval of timesheets and salary changes for all salaries charged to grants.
Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that helps ensure transactions are recorded timely, correctly, and in the proper reporting period, thereby providing accurate financial data. Condition: The Organization has policies and procedures in place for the review and approval of federal expenditures, however there was no documentation of their internal control system over federal award expenditures. Effect: There was no way to test the internal control system over federal award expenditures to be able to assess control risk at low. Cause: Controls were unable to be tested as there is no documentation of those controls in place. Recommendation: We recommend that finance personnel show documentation of their review and approval of invoices charged to grants. The organization should also document the review and approval of timesheets and salary changes for all salaries charged to grants.
Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that helps ensure transactions are recorded timely, correctly, and in the proper reporting period, thereby providing accurate financial data. Condition: The Organization has policies and procedures in place for the review and approval of federal expenditures, however there was no documentation of their internal control system over federal award expenditures. Effect: There was no way to test the internal control system over federal award expenditures to be able to assess control risk at low. Cause: Controls were unable to be tested as there is no documentation of those controls in place. Recommendation: We recommend that finance personnel show documentation of their review and approval of invoices charged to grants. The organization should also document the review and approval of timesheets and salary changes for all salaries charged to grants.
Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that helps ensure transactions are recorded timely, correctly, and in the proper reporting period, thereby providing accurate financial data. Condition: The Organization has policies and procedures in place for the review and approval of federal expenditures, however there was no documentation of their internal control system over federal award expenditures. Effect: There was no way to test the internal control system over federal award expenditures to be able to assess control risk at low. Cause: Controls were unable to be tested as there is no documentation of those controls in place. Recommendation: We recommend that finance personnel show documentation of their review and approval of invoices charged to grants. The organization should also document the review and approval of timesheets and salary changes for all salaries charged to grants.
Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that helps ensure transactions are recorded timely, correctly, and in the proper reporting period, thereby providing accurate financial data. Condition: The Organization has policies and procedures in place for the review and approval of federal expenditures, however there was no documentation of their internal control system over federal award expenditures. Effect: There was no way to test the internal control system over federal award expenditures to be able to assess control risk at low. Cause: Controls were unable to be tested as there is no documentation of those controls in place. Recommendation: We recommend that finance personnel show documentation of their review and approval of invoices charged to grants. The organization should also document the review and approval of timesheets and salary changes for all salaries charged to grants.
Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that helps ensure transactions are recorded timely, correctly, and in the proper reporting period, thereby providing accurate financial data. Condition: The Organization has policies and procedures in place for the review and approval of federal expenditures, however there was no documentation of their internal control system over federal award expenditures. Effect: There was no way to test the internal control system over federal award expenditures to be able to assess control risk at low. Cause: Controls were unable to be tested as there is no documentation of those controls in place. Recommendation: We recommend that finance personnel show documentation of their review and approval of invoices charged to grants. The organization should also document the review and approval of timesheets and salary changes for all salaries charged to grants.