FAC Explorer

Audit 36890

FY End
2022-06-30
Total Expended
$1.60M
Findings
2
Programs
1
Organization: Women's Civic Improvement Club of Sacramento, Inc. (CA)
Year: 2022 Accepted: 2023-05-01
Auditor: Richardson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34694 2022-001 - - B
611136 2022-001 - - B

Programs

ALN Program Spent Major Findings
93.600 Head Start $1.60M Yes 1

Contacts

Name Title Type
NB6XHV7LF1M4 Edenausegboye Davis Auditee
9164518787 Ingrid Sheipline Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures are reported on the Schedule 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. WCIC has elected not to use the 10 percent de minimis indirect cost rate under Section 200.502 and the applicable cost principles used per 2 CFR 200. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenses reported on the Schedule are reported on the accrual basis of accounting. Such expenses are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited as to reimbursement.
Title: Program Cost/Matching Contributions Accounting Policies: Expenditures are reported on the Schedule 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. WCIC has elected not to use the 10 percent de minimis indirect cost rate under Section 200.502 and the applicable cost principles used per 2 CFR 200. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs, including the WCICs portion, may be more than shown
Title: Noncash Awards Accounting Policies: Expenditures are reported on the Schedule 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. WCIC has elected not to use the 10 percent de minimis indirect cost rate under Section 200.502 and the applicable cost principles used per 2 CFR 200. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No noncash awards existed in the current year.
Title: Indirect Cost Allocation Plan Accounting Policies: Expenditures are reported on the Schedule 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. WCIC has elected not to use the 10 percent de minimis indirect cost rate under Section 200.502 and the applicable cost principles used per 2 CFR 200. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The WCIC did not apply indirect costs to any federal programs.
Title: Subrecipients Accounting Policies: Expenditures are reported on the Schedule 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. WCIC has elected not to use the 10 percent de minimis indirect cost rate under Section 200.502 and the applicable cost principles used per 2 CFR 200. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no subrecipients of WCIC's programs during the year ended June 30, 2022.

Finding Details

Finding 2022-001
Finding 2022-001 ? Health insurance premium questioned cost Condition: The health insurance premiums for a few employees that were no longer employed by WCIC were paid using federal funds from the Head Start grants. Criteria: Health benefits charged to federal grant funds need to be directly related to employees providing services under the grant program. Cause: WCIC did not notify the health insurance provider that employees had terminated within the required timeframe. Effect: Due to the terminated employees not being removed from the health insurance, WCIC over-paid on health insurance premiums going as far back as November 2018 using federal grants that will need to be repaid. Recommendation: We recommend that management establish a process whereby the health insurance provider is notified of employee terminations and that all health insurance invoices be reviewed on a monthly basis for employees that have ceased working for WCIC. Management Response and Corrective Action Plan: Management attempted to receive a refund from the insurance agency but were denied due to the period of their request being beyond the insurance agency?s refund policy. Only four of the most recent months were refunded. The remaining premiums will be repaid to the federal pass-through agency out of nonfederal funds.
Finding 2022-001
Finding 2022-001 ? Health insurance premium questioned cost Condition: The health insurance premiums for a few employees that were no longer employed by WCIC were paid using federal funds from the Head Start grants. Criteria: Health benefits charged to federal grant funds need to be directly related to employees providing services under the grant program. Cause: WCIC did not notify the health insurance provider that employees had terminated within the required timeframe. Effect: Due to the terminated employees not being removed from the health insurance, WCIC over-paid on health insurance premiums going as far back as November 2018 using federal grants that will need to be repaid. Recommendation: We recommend that management establish a process whereby the health insurance provider is notified of employee terminations and that all health insurance invoices be reviewed on a monthly basis for employees that have ceased working for WCIC. Management Response and Corrective Action Plan: Management attempted to receive a refund from the insurance agency but were denied due to the period of their request being beyond the insurance agency?s refund policy. Only four of the most recent months were refunded. The remaining premiums will be repaid to the federal pass-through agency out of nonfederal funds.