FAC Explorer

Audit 37105

FY End
2022-06-30
Total Expended
$3.39M
Findings
4
Programs
19
Organization: Friendly House, Inc. (AZ)
Year: 2022 Accepted: 2023-03-26
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
39607 2022-002 Significant Deficiency Yes L
39608 2022-003 Material Weakness Yes C
616049 2022-002 Significant Deficiency Yes L
616050 2022-003 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $727,404 Yes 0
93.566 Refugee and Entrant Assistance_state Administered Programs $391,870 Yes 2
84.044 Trio_talent Search $294,593 - 0
10.559 Summer Food Service Program for Children $235,088 - 0
16.575 Crime Victim Assistance $225,954 - 0
93.235 Affordable Care Act (aca) Abstinence Education Program $155,033 - 0
84.010 Title I Grants to Local Educational Agencies $154,151 - 0
17.270 Reintegration of Ex-Offenders $117,182 - 0
84.287 Twenty-First Century Community Learning Centers $105,016 - 0
10.553 School Breakfast Program $102,670 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $71,560 - 0
10.569 Emergency Food Assistance Program (food Commodities) $27,567 - 0
10.555 National School Lunch Program $26,600 - 0
84.424 Student Support and Academic Enrichment Program $19,645 - 0
84.002 Adult Education - Basic Grants to States $18,735 - 0
84.367 Improving Teacher Quality State Grants $18,509 - 0
84.027 Special Education_grants to States $15,262 - 0
84.365 English Language Acquisition State Grants $10,731 - 0
84.173 Special Education_preschool Grants $1,138 - 0

Contacts

Name Title Type
K7ZUGB5RLNN3 Jerry Mendoza Auditee
6022571870 Pamela Eggert Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activityof the Organization under programs of the federal government for the year ended June 30, 2022. Theinformation is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the schedule presents only a selected portion of the operations of the Organization, it is notintended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Food Donation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in this schedule at the fair market value of the commodities received anddisbursed. At June 30, 2022, the Organization had food commodities totaling $0 in inventory.

Finding Details

Finding 2022-002
2022-002 Reporting Noncompliance Reporting Significant Deficiency in Internal Control over Compliance U.S. Department of Health and Human Services Passed-through the Arizona Department of Economic Security Refugee and Entrant Assistance State Administered Federal Financial Assistance Listing/CFDA #93.566; ADES18-191650; October 1, 2020 to September 30, 2021 and October 1, 2021 to September 30, 2022 Criteria: The Organization is required to submit performance reports for each trimester. Reports should be submitted timely in accordance with established requirements and should be reviewed by a supervisory individual prior to submission to ensure accuracy. Condition: Eide Bailly LLP (EB) noted the following internal control issues. ? Although the reports were reviewed in accordance with the internal controls, two out of three reports tested lacked the required documentation to support the reports Cause: Based on discussions with personnel, the errors in reports are due to administrative errors. Effect: Inaccurate information may be provided to the funder regarding performance of the Organization. Questioned Costs: None reported. Context/Sampling: All three of the reports submitted during the year were selected for testing. Repeat Finding from Prior Year: Yes, 2021-002. Recommendation: We recommend the Organization?s management routinely review and consider modifications that would strengthen the internal controls surrounding the reporting process, record-keeping, and the management thereof. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
2022-003 Cash Management Material Noncompliance Cash Management Material Weakness in Internal Control over Compliance U.S. Department of Health and Human Services Passed-through the Arizona Department of Economic Security Refugee and Entrant Assistance State Administered Federal Financial Assistance Listing/CFDA #93.566; ADES18-191650; October 1, 2020 to September 30, 2021 and October 1, 2021 to September 30, 2022 Criteria: For non-Federal entities other than states, payment methods must minimize the time elapsing between the transfer of funds from the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance of redemption of checks, warrants, or payment by other means. Per review of the invoices for the programs and the Organization?s internal control processes, all invoices require approval by someone authorized and that the draw requests should be adequately supported. Condition: Eide Bailly LLP (EB) noted that four out of four draw requests did not have adequate support for the class hours included. Cause: Based on discussions with personnel, lack of supporting documentation occurred due to administrative oversight. Effect: Invoices could be incorrect. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 4 draw requests out of 12 total draw requests were selected for testing. Repeat Finding from Prior Year: Yes, 2021-003 Recommendation: We recommend the Organization?s management routinely review and consider modifications to or implementation of policies and procedures that would strengthen internal controls surrounding the approval and submission process of invoices. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-002
2022-002 Reporting Noncompliance Reporting Significant Deficiency in Internal Control over Compliance U.S. Department of Health and Human Services Passed-through the Arizona Department of Economic Security Refugee and Entrant Assistance State Administered Federal Financial Assistance Listing/CFDA #93.566; ADES18-191650; October 1, 2020 to September 30, 2021 and October 1, 2021 to September 30, 2022 Criteria: The Organization is required to submit performance reports for each trimester. Reports should be submitted timely in accordance with established requirements and should be reviewed by a supervisory individual prior to submission to ensure accuracy. Condition: Eide Bailly LLP (EB) noted the following internal control issues. ? Although the reports were reviewed in accordance with the internal controls, two out of three reports tested lacked the required documentation to support the reports Cause: Based on discussions with personnel, the errors in reports are due to administrative errors. Effect: Inaccurate information may be provided to the funder regarding performance of the Organization. Questioned Costs: None reported. Context/Sampling: All three of the reports submitted during the year were selected for testing. Repeat Finding from Prior Year: Yes, 2021-002. Recommendation: We recommend the Organization?s management routinely review and consider modifications that would strengthen the internal controls surrounding the reporting process, record-keeping, and the management thereof. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
2022-003 Cash Management Material Noncompliance Cash Management Material Weakness in Internal Control over Compliance U.S. Department of Health and Human Services Passed-through the Arizona Department of Economic Security Refugee and Entrant Assistance State Administered Federal Financial Assistance Listing/CFDA #93.566; ADES18-191650; October 1, 2020 to September 30, 2021 and October 1, 2021 to September 30, 2022 Criteria: For non-Federal entities other than states, payment methods must minimize the time elapsing between the transfer of funds from the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance of redemption of checks, warrants, or payment by other means. Per review of the invoices for the programs and the Organization?s internal control processes, all invoices require approval by someone authorized and that the draw requests should be adequately supported. Condition: Eide Bailly LLP (EB) noted that four out of four draw requests did not have adequate support for the class hours included. Cause: Based on discussions with personnel, lack of supporting documentation occurred due to administrative oversight. Effect: Invoices could be incorrect. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 4 draw requests out of 12 total draw requests were selected for testing. Repeat Finding from Prior Year: Yes, 2021-003 Recommendation: We recommend the Organization?s management routinely review and consider modifications to or implementation of policies and procedures that would strengthen internal controls surrounding the approval and submission process of invoices. Views of Responsible Officials: Management agrees with the finding.