FAC Explorer

Audit 378274

FY End
2024-12-31
Total Expended
$4.56M
Findings
30
Programs
2
Organization: Koinonia Foster Homes, Inc. (CA)
Year: 2024 Accepted: 2025-12-30
Auditor: FECHTER AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1167237 2024-002 Material Weakness Yes P
1167238 2024-002 Material Weakness Yes P
1167239 2024-002 Material Weakness Yes P
1167240 2024-002 Material Weakness Yes P
1167241 2024-002 Material Weakness Yes P
1167242 2024-002 Material Weakness Yes P
1167243 2024-002 Material Weakness Yes P
1167244 2024-002 Material Weakness Yes P
1167245 2024-002 Material Weakness Yes P
1167246 2024-002 Material Weakness Yes P
1167247 2024-002 Material Weakness Yes P
1167248 2024-002 Material Weakness Yes P
1167249 2024-002 Material Weakness Yes P
1167250 2024-002 Material Weakness Yes P
1167251 2024-002 Material Weakness Yes P
1167252 2024-002 Material Weakness Yes P
1167253 2024-002 Material Weakness Yes P
1167254 2024-002 Material Weakness Yes P
1167255 2024-002 Material Weakness Yes P
1167256 2024-002 Material Weakness Yes P
1167257 2024-002 Material Weakness Yes P
1167258 2024-002 Material Weakness Yes P
1167259 2024-002 Material Weakness Yes P
1167260 2024-002 Material Weakness Yes P
1167261 2024-002 Material Weakness Yes P
1167262 2024-002 Material Weakness Yes P
1167263 2024-002 Material Weakness Yes P
1167264 2024-002 Material Weakness Yes P
1167265 2024-002 Material Weakness Yes P
1167266 2024-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
93.659 ADOPTION ASSISTANCE $3,440 Yes 0
93.658 FOSTER CARE TITLE IV-E $195 Yes 1

Contacts

Name Title Type
RPQDPMNNG8C3 Deena Spann Auditee
9166525802 Michael Fink Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of Koinonia Foster Homes, Inc. (the Agency) under programs of the Federal government for the year ended December 31, 2024. This information in the 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 the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency.
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.
These Federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures. The amounts, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Agency expects such amounts, if any, to be immaterial.
The Agency does not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance for all of its projects.

Finding Details

Finding 2024-002
Criteria: Per guidance: 2CFR 200.510(b) – Under 2 CFR §200.510(b), the Uniform Guidance mandates that auditees prepare a SEFA that accurately reflects federal award expenditures. Additionally, 2 CFR Part 200 Subpart F outlines the required components that must be included in the SEFA. Condition: During the audit, we noted that the SEFA did not include required information around identification of passthrough information which is required under Uniform Guidance. We also noted in our testing that the SEFA amount reported was overstated based on the improper identification of federal versus state funds received. The amount reported was determined to include state funds as well as federal funds. Cause: Management does not have sufficient internal controls to ensure the accuracy and completeness of the Schedule of Expenditures of Federal Awards. During performance of audit procedures, we noted that the identification of federal funds was miscalculated based on a lack of information provided by the pass-through agency. We find that several counties failed their responsibilities as a pass-through agency to provide timely federal award information to their subrecipient, Koinonia Foster Homes, Inc. We also noted that the SEFA was not reflecting the passthrough entity information which is required in which the Agency had the information available in order to do so. Effect: The use of incomplete or incorrect information on the SEFA can result in the improper identification of major programs and related compliance requirements. Management subsequently corrected the SEFA to reflect accurate expenditures of federal awards incurred in 2024. Recommendation: We recommend that the management and those charged with governance review the Uniform Guidance requirements in regards to SEFA reporting. Management cannot rely upon each respective County to proactively assist Koinonia Foster Homes, Inc. to produce an accurate SEFA. We recommend that in addition to correspondence with each County throughout the year, they obtain California state issued letters that are published on the website, that present the annual federal to state ratios of Foster Care – Title IV-E funds that can be used to identify federal funds received. We also recommend that one or more levels of review and approval of the SEFA be done by a member of management to ensure accuracy.