FAC Explorer

Audit 38289

FY End
2022-12-31
Total Expended
$6.26M
Findings
2
Programs
7
Organization: Lighthouse Social Service Centers (CA)
Year: 2022 Accepted: 2023-09-27
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
41498 2022-002 Material Weakness - P
617940 2022-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $1.64M Yes 1
14.268 Rural Housing Stability Assistance Program $1.10M Yes 0
14.231 Emergency Solutions Grant Program $409,273 - 0
14.267 Continuum of Care Program $403,684 Yes 0
64.024 Va Homeless Providers Grant and Per Diem Program $191,732 - 0
21.023 Emergency Rental Assistance Program $46,782 - 0
64.033 Va Supportive Services for Veteran Families Program $12,834 - 0

Contacts

Name Title Type
XQHHVEB4ZHD5 Karyn Young-Lowe Auditee
9515713533 Kendra Dockham Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal AwardsScope of PresentationThe accompanying schedule presents the expenditures incurred (and related awards received) by December 31, 2022, that are reimbursable under federal programs of federal agencies providing financial assistance. For the purposes of this schedule, only the portions of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule.Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activity of 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
2022-002 Material Weakness 93.558 Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls. The objectives of internal control over compliance as found in 2 CFR section 200.1, are to ensure that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports. Condition As a result of our audit procedures in relation to the audit of the financial statements it was determined that amounts reported in the prior year on the schedule of expenditures of federal awards was understated by $433,027. A restatement of the prior period was required in the financial statements. Context The Organization has experienced high turnover in its fiscal department. Cause Due to turn over in the fiscal department grant claims for reimbursements of expenses incurred in accordance with grant agreements were not submitted timely or recorded in the period the conditions of the grant were met. Effect The Schedule of Expenditures of Federal Awards was materially misstated in the prior year. Recommendations We recommend that documented accounting procedures establish clear guidelines for revenue recognition and that monitoring be performed by management to ensure that grant claims are submitted timely. We also recommend that monthly reconciliations of revenue to expenditures be performed monthly and reviewed by management to ensure that expenditures of federal awards are complete and accurate.
Finding 2022-002
2022-002 Material Weakness 93.558 Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal controls. The objectives of internal control over compliance as found in 2 CFR section 200.1, are to ensure that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports. Condition As a result of our audit procedures in relation to the audit of the financial statements it was determined that amounts reported in the prior year on the schedule of expenditures of federal awards was understated by $433,027. A restatement of the prior period was required in the financial statements. Context The Organization has experienced high turnover in its fiscal department. Cause Due to turn over in the fiscal department grant claims for reimbursements of expenses incurred in accordance with grant agreements were not submitted timely or recorded in the period the conditions of the grant were met. Effect The Schedule of Expenditures of Federal Awards was materially misstated in the prior year. Recommendations We recommend that documented accounting procedures establish clear guidelines for revenue recognition and that monitoring be performed by management to ensure that grant claims are submitted timely. We also recommend that monthly reconciliations of revenue to expenditures be performed monthly and reviewed by management to ensure that expenditures of federal awards are complete and accurate.