FAC Explorer

Audit 370619

FY End
2024-12-31
Total Expended
$1.31M
Findings
1
Programs
2
Organization: Word of Hope Ministries, Inc. (WI)
Year: 2024 Accepted: 2025-10-09
Auditor: Williams CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1160222 2024-001 Material Weakness Yes F

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.25M Yes 1
14.218 Community Development Block Grant $54,908 Yes 0

Contacts

Name Title Type
KSGEN7S6LR41 Loretta Howard Auditee
4144471965 Noel Williams Auditor
No contacts on file

Notes to SEFA

The accompanying “Schedule of Expenditures of Federal and State Awards” includes the federal and state grant activity of Word of Hope Ministries, Inc. and is presented on the accrual basis of accounting. 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). This Schedule presents only a selected portion of the operation of Word of Hope Ministries, Inc., is not intended to and does not present the financial position, operations or cash flows of Word of Hope Ministries, Inc.
Operating expenses, which are general in nature, are distributed monthly to the program grants based on the relative staffing of each program grant during the month. Total salaries in each program grants' service area is the basis for the relative monthly staffing level. The general operating costs are grouped and distributed within two categories: Firm-wide Costs: Costs incurred firm-wide such as audit, professional liability insurance and multi-peril insurance. Individual Office Costs: For each office, costs incurred such as supplies, copiers and postage are allocated to the program grants within that individual office.
The Company has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Certain program funds are passed through the Company on behalf of its subgrantee organizations. The Schedule of Expenditures of Federal, State and Other Awards does not disclose how the subgrantees outside of Legal Action's control utilized the funds.

Finding Details

Finding 2024-001
Criteria – The inability to report financial data reliably in accordance with accounting principles generally accepted in the United States of (GAAP) is considered to be an internal control deficiency. Condition – The Company’s internal control over financial reporting extends through completion of the general ledger, but not to preparation of GAAP compliant financial statements and notes. As auditors, we were requested to draft the financial statements, and the accompanying notes to the financial statements. The auditors believe, in the auditors’ judgment, the Company does possess the necessary expertise to prepare the financial statements but has chosen to hire the auditors to perform this service. Effect – As a result of not having an individual on staff to prepare GAAP basis financial statements, the Company has an internal control deficiency. Cause – Management and those charged with governance have accepted this condition because of cost. Recommendation – We recommend that management and those charged with governance continue to oversee and accept responsibility for the financial statement preparation services.