FAC Explorer

Audit 383444

FY End
2023-12-31
Total Expended
$6.27M
Findings
8
Programs
1
Organization: New Directions, Inc. (CA)
Year: 2023 Accepted: 2026-01-22
Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1170344 2023-001 Material Weakness Yes L
1170345 2023-001 Material Weakness Yes L
1170346 2023-001 Material Weakness Yes L
1170347 2023-001 Material Weakness Yes L
1170348 2023-001 Material Weakness Yes L
1170349 2023-001 Material Weakness Yes L
1170350 2023-001 Material Weakness Yes L
1170351 2023-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
64.024 VA HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM $328,839 Yes 1

Contacts

Name Title Type
RD7ZEAA67K47 Leo Cuadrado Auditee
3109144045 Jacquelyn Richman Auditor
No contacts on file

Notes to SEFA

The schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of New Directions, Inc. and Subsidiaries (the "Organization") under programs of the federal government for the year ended December 31, 2023. 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The Organization has not elected to use the de minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding No. 2023-001 - Reporting Name of Federal Agency: U.S. Department of Veterans Affairs Federal Program Name and Assistance Listing Number: VA Homeless Providers Grant and Per Diem Program, Assistance Listing Number 64.024 Federal Award Identification Number and Year: 2017CESSAY16, 2023 Name of Pass-through Entity: City of Los Angeles, County of Los Angeles Internal Control - Significant Deficiency Criteria: Uniform Guidance Section 512(a) states that Uniform Guidance reporting package and the data collection form are required to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the receipt of the auditors reports or nine months after the end of the audit period, unless a longer period of time was agreed to in advance by the cognizant or oversight agency for the audit. Condition: The Organization did not submit its Uniform Guidance reporting package and data collection form (Form SF-SAC) for the fiscal year ended December 31, 2023 to the Federal Audit Clearinghouse by the required due date. Cause: Regular month-end procedures have been developed, but due to staff turnover in key positions and lack of resources, the Organization was unable to identify and provide all of the necessary information to the auditor in a timely manner. Effect or Potential Effect: This condition may lead to non-compliance with reporting requirements. Questioned Costs: None Context: This issue was noted across multiple reporting issues. While management submitted complete and accurate reports, the Organization was unable to provide all of the necessary information to the auditor in a timely manner. Identification as a Repeat Finding: This finding is a repeat finding (see prior year finding number: 2022-001) Recommendation: We recommend that the Organization enhances its policies and procedures to ensure timely filing of the Uniform Guidance reporting package and data collection form. Views of Responsible Officials: Management concurs that there were staffing and turnover challenges for the Organization. Adequate policies and procedures are in place to ensure timeliness of data requested. Additionally, we will establish milestones to ensure future audits progress within the Uniform Guidance timeline.