Audit 367600

FY End
2024-09-30
Total Expended
$2.77M
Findings
7
Programs
7
Year: 2024 Accepted: 2025-09-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1155355 2024-002 Material Weakness Yes G
1155356 2024-002 Material Weakness Yes G
1155357 2024-003 Material Weakness Yes I
1155358 2024-003 Material Weakness Yes I
1155359 2024-003 Material Weakness Yes I
1155360 2024-003 Material Weakness Yes I
1155361 2024-003 Material Weakness Yes I

Contacts

Name Title Type
J6DZAGFL3NC7 Kseniya Delano Auditee
5207950300 Lydia Hunter Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Jewish Family & Children's Service of Southern Arizona, Inc. (JFCS) under programs of the federal government for the year ended September 30, 2024. 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). Because the Schedule presents only a selected portion of the operations of Jewish Family & Children's Service of Southern Arizona, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of JFCS.
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. JFCS has elected not to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The program titles and ALN numbers, or federal identification numbers, were obtained from the federal or pass-through grantor or the update to the Catalog of Federal Domestic Assistance.

Finding Details

ALN Number and Title: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Treasury Federal Award Number: VOCA-2024-JFSAZ-00166 Grant period: October 1, 2023 - September 30, 2024 Criteria: Matching - Internal controls should be operating as designed to ensure the Organization has documented evidence that matching amounts reported were reviewed for accuracy prior to submission to funding agency. Condition: Controls over matching were not operating as designed. Cause: Transition in accounting department. Effect: The Organization does not have adequate documentation evidencing review of amounts reported to funding agency. Context: A sample of 4 monthly reports for matching tested from a population of 12 for the period October 1, 2023 through September 30, 2024. The test found one matching report did not have evidence of supervisor review. Questioned costs: No known or likely questioned costs over $25,000. Repeat finding: No Recommendation: We recommend the Organization adhere to its internal control policies and procedures. Views of responsible officials of the auditee: Management reviewed their internal control policies and procedures and made changes to accounting operations to resolve this issue going forward.
ALN Number and Title: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Treasury Federal Award Number: VOCA-2024-JFSAZ-00166 Grant period: October 1, 2023 - September 30, 2024 Criteria: Matching - Internal controls should be operating as designed to ensure the Organization has documented evidence that matching amounts reported were reviewed for accuracy prior to submission to funding agency. Condition: Controls over matching were not operating as designed. Cause: Transition in accounting department. Effect: The Organization does not have adequate documentation evidencing review of amounts reported to funding agency. Context: A sample of 4 monthly reports for matching tested from a population of 12 for the period October 1, 2023 through September 30, 2024. The test found one matching report did not have evidence of supervisor review. Questioned costs: No known or likely questioned costs over $25,000. Repeat finding: No Recommendation: We recommend the Organization adhere to its internal control policies and procedures. Views of responsible officials of the auditee: Management reviewed their internal control policies and procedures and made changes to accounting operations to resolve this issue going forward.
ALN Number and Title: 93.576 Refugee and Entrant Assistance Discretionary Grants Federal Agency: U.S. Department of Health and Human Services Federal Award Number: 9OZZ0013-01-01 (Direct award) Grant period: October 1, 2023 - September 30, 2024 Criteria: Procurement - Non-profit entities must follow the procurement standards set out at 2 CFR part 200. Condition: Lack of documentation of the history of procurement including the rationale for the method of procurement and the Organization's procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. In addition, the conflict of interest policy was inadvertently removed from the procurement policy when the financial policies manual was updated in June 2024. Cause: Staff did not follow policies. Effect: The Organization does not have adequate documentation to support rational for procurement method. In addition, procurement policy related to conflicts of interest is not documented. Context: A sample of 2 disbursements totaling $26,400 tested from a population of 8 transactions over the micro purchase threshold totaling $109,557 for the period October 1, 2023 through September 30, 2024. Questioned costs: No known or likely questioned costs over $25,000. Repeat finding: No. Recommendation: We recommend the Organization adhere to its policy for documenting procurement and update its financial policies manual to include required conflict of interest policy in accordance with 2 CFR part 200. Views of responsible officials of the auditee: Management is reviewing all finance policies and procedures as the Organization moves forward with creating a revised Finance Policies Manual. Management has taken the step of moving the Conflict-of-Interest policy to the current Finance Policies Manual. Management will train all staff on the proper policies for documenting procurement.
ALN Number and Title: 93.576 Refugee and Entrant Assistance Discretionary Grants Federal Agency: U.S. Department of Health and Human Services Federal Award Number: 9OZZ0013-01-01 (Direct award) Grant period: October 1, 2023 - September 30, 2024 Criteria: Procurement - Non-profit entities must follow the procurement standards set out at 2 CFR part 200. Condition: Lack of documentation of the history of procurement including the rationale for the method of procurement and the Organization's procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. In addition, the conflict of interest policy was inadvertently removed from the procurement policy when the financial policies manual was updated in June 2024. Cause: Staff did not follow policies. Effect: The Organization does not have adequate documentation to support rational for procurement method. In addition, procurement policy related to conflicts of interest is not documented. Context: A sample of 2 disbursements totaling $26,400 tested from a population of 8 transactions over the micro purchase threshold totaling $109,557 for the period October 1, 2023 through September 30, 2024. Questioned costs: No known or likely questioned costs over $25,000. Repeat finding: No. Recommendation: We recommend the Organization adhere to its policy for documenting procurement and update its financial policies manual to include required conflict of interest policy in accordance with 2 CFR part 200. Views of responsible officials of the auditee: Management is reviewing all finance policies and procedures as the Organization moves forward with creating a revised Finance Policies Manual. Management has taken the step of moving the Conflict-of-Interest policy to the current Finance Policies Manual. Management will train all staff on the proper policies for documenting procurement.
ALN Number and Title: 93.576 Refugee and Entrant Assistance Discretionary Grants Federal Agency: U.S. Department of Health and Human Services Federal Award Number: 9OZZ0013-01-01 (Direct award) Grant period: October 1, 2023 - September 30, 2024 Criteria: Procurement - Non-profit entities must follow the procurement standards set out at 2 CFR part 200. Condition: Lack of documentation of the history of procurement including the rationale for the method of procurement and the Organization's procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. In addition, the conflict of interest policy was inadvertently removed from the procurement policy when the financial policies manual was updated in June 2024. Cause: Staff did not follow policies. Effect: The Organization does not have adequate documentation to support rational for procurement method. In addition, procurement policy related to conflicts of interest is not documented. Context: A sample of 2 disbursements totaling $26,400 tested from a population of 8 transactions over the micro purchase threshold totaling $109,557 for the period October 1, 2023 through September 30, 2024. Questioned costs: No known or likely questioned costs over $25,000. Repeat finding: No. Recommendation: We recommend the Organization adhere to its policy for documenting procurement and update its financial policies manual to include required conflict of interest policy in accordance with 2 CFR part 200. Views of responsible officials of the auditee: Management is reviewing all finance policies and procedures as the Organization moves forward with creating a revised Finance Policies Manual. Management has taken the step of moving the Conflict-of-Interest policy to the current Finance Policies Manual. Management will train all staff on the proper policies for documenting procurement.
ALN Number and Title: 93.576 Refugee and Entrant Assistance Discretionary Grants Federal Agency: U.S. Department of Health and Human Services Federal Award Number: 9OZZ0013-01-01 (Direct award) Grant period: October 1, 2023 - September 30, 2024 Criteria: Procurement - Non-profit entities must follow the procurement standards set out at 2 CFR part 200. Condition: Lack of documentation of the history of procurement including the rationale for the method of procurement and the Organization's procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. In addition, the conflict of interest policy was inadvertently removed from the procurement policy when the financial policies manual was updated in June 2024. Cause: Staff did not follow policies. Effect: The Organization does not have adequate documentation to support rational for procurement method. In addition, procurement policy related to conflicts of interest is not documented. Context: A sample of 2 disbursements totaling $26,400 tested from a population of 8 transactions over the micro purchase threshold totaling $109,557 for the period October 1, 2023 through September 30, 2024. Questioned costs: No known or likely questioned costs over $25,000. Repeat finding: No. Recommendation: We recommend the Organization adhere to its policy for documenting procurement and update its financial policies manual to include required conflict of interest policy in accordance with 2 CFR part 200. Views of responsible officials of the auditee: Management is reviewing all finance policies and procedures as the Organization moves forward with creating a revised Finance Policies Manual. Management has taken the step of moving the Conflict-of-Interest policy to the current Finance Policies Manual. Management will train all staff on the proper policies for documenting procurement.
ALN Number and Title: 93.576 Refugee and Entrant Assistance Discretionary Grants Federal Agency: U.S. Department of Health and Human Services Federal Award Number: 9OZZ0013-01-01 (Direct award) Grant period: October 1, 2023 - September 30, 2024 Criteria: Procurement - Non-profit entities must follow the procurement standards set out at 2 CFR part 200. Condition: Lack of documentation of the history of procurement including the rationale for the method of procurement and the Organization's procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. In addition, the conflict of interest policy was inadvertently removed from the procurement policy when the financial policies manual was updated in June 2024. Cause: Staff did not follow policies. Effect: The Organization does not have adequate documentation to support rational for procurement method. In addition, procurement policy related to conflicts of interest is not documented. Context: A sample of 2 disbursements totaling $26,400 tested from a population of 8 transactions over the micro purchase threshold totaling $109,557 for the period October 1, 2023 through September 30, 2024. Questioned costs: No known or likely questioned costs over $25,000. Repeat finding: No. Recommendation: We recommend the Organization adhere to its policy for documenting procurement and update its financial policies manual to include required conflict of interest policy in accordance with 2 CFR part 200. Views of responsible officials of the auditee: Management is reviewing all finance policies and procedures as the Organization moves forward with creating a revised Finance Policies Manual. Management has taken the step of moving the Conflict-of-Interest policy to the current Finance Policies Manual. Management will train all staff on the proper policies for documenting procurement.