FAC Explorer

Audit 390705

FY End
2025-06-30
Total Expended
$1.59M
Findings
2
Programs
1
Organization: Trees Atlanta, Inc. (GA)
Year: 2025 Accepted: 2026-03-06
Auditor: BAKER TILLY US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1176860 2025-001 Material Weakness Yes L
1176861 2025-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $15,000 Yes 0

Contacts

Name Title Type
MJM4MBBKUC95 Don Hemrick Auditee
4046814906 Kate Haslam Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the Organization. The Organization’s reporting entity is defined in Note 1 to the Organization’s basic financial statements. 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). All federal awards received directly from federal agencies as well as federal financial assistance passed through other government agencies are included on the schedule. The Organization had $553,527 of federal awards that were passed to subrecipients during the year.
The accompanying SEFA is presented using the accrual basis of accounting, which is described in Note 1 to the Organization’s basic financial statements. The Organization accounts for federal financial assistance as non-operating revenue.
The Organization has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Amounts reported as pass-through awards were received from the listed pass-through entities and include pass-through identifying numbers where available.
Of the federal expenditures presented in the SEFA, the Organization provided $553,527 to subrecipients under the Inflation Reduction Act Urban & Community Forestry Program.
Federal program award revenues are reported as revenue in the Organization’s basic financial statements as contributions in the amount of $1,588,297.

Finding Details

Finding 2025-001
Criteria: In accordance with 2 CFR 200.303(a), a formalized system of internal control should be established, documented, and maintained to ensure that performance reporting information for each award is reliably captured and included in the applicable reports. Condition/Context: During our testing of the Reporting compliance requirement, specifically performance reporting, we noted that the Organization did not have any formal internal control procedures in place to ensure the accuracy, completeness, and timely submission of required performance reports. For the three performance reports tested, there were no documented review procedures or approvals to validate the information reported to the funding agencies. Our testing did not identify any instances of noncompliance; however, the absence of an internal control represents a breakdown in the control activities for the compliance area. Cause: Management had not implemented a formal internal control policy over the performance reporting process. Effect/Possible Effect: Failure to adequately maintain a system of internal control increases the risk of submitting inaccurate, incomplete, unsupported, or untimely reports. Questioned Costs: No questioned costs were identified as part of this finding. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Organization design and implement formal internal control policies and procedures over the Reporting compliance requirement which includes, but is not limited to, documented preparation, review and approval of the reports and retention of supporting documents for all applicable information included within the reports. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation to design and implement formalized internal control policies and procedures specific to the Reporting compliance requirement and are in the process of doing so.