FAC Explorer

Audit 392439

FY End
2023-12-31
Total Expended
$977,461
Findings
2
Programs
6
Organization: FREEDOM HOUSE DETROIT (MI)
Year: 2023 Accepted: 2026-03-17
Auditor: GLEN OLIVACHE CPA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1180757 2023-001 Material Weakness Yes P
1180758 2023-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
93.604 ASSISTANCE FOR TORTURE VICTIMS $300,920 Yes 1
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $179,047 Yes 0
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $173,801 Yes 1
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $88,541 Yes 0
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $72,239 Yes 0
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $43,421 Yes 0

Contacts

Name Title Type
HB3HABN9VJT6 Elizabeth Vasquez Auditee
3139644320 Glen Olivache Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal grant activity of Freedom House Detroit, and is presented on the same basis of accounting as the basic financial statements. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) 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. Because the Schedule presents only a selected portion of the operations of Freedom House Detroit, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Freedom House Detroit
Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Nonprofit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, whereas certain types of expenditures are not allowable or are limited as to reimbursement. Freedom House Detroit did not elect to use the 10% De Minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance.
The following provides a reconciliation of the grants revenue reported on the statement of activities to the expenditures of federal awards:

Finding Details

Finding 2023-001
CFDA Number, Federal Agency/Pass-Through Agency and Program Name - CFDA # 21.027 - Coronavirus State and Local Fiscal Recovery Funds CFDA # 93.604 – Assistance for Torture Victims Repeat Finding - No Questioned Costs - None Criteria - The audit must be completed and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition - The audit report and data collection form were not submitted within nine months of the year end; specifically, no later than September 30, 2024. Cause - The audit was not completed within the due date of September 30, 2024. Effect - Untimely issuance of financial statements and noncompliance with Federal requirements. Recommendation - We recommend that management implement procedures to ensure timely completion and submission of all financial reports. View of Responsible Officials and Corrective Action Planned - Freedom House Detroit (FHD) acknowledges that per the grant terms of CDFA# 21.027 - COVID-19 Coronavirus State and Local Fiscal Recovery Funds and 93.604 - Assistance for Torture Victims the 2023 audit was to be completed by 09/30/2024. The circumstances surrounding the late submission were based on issues outside of FHD's full control. FHD had issues with its last audit firm, which it is currently still trying to resolve. This resulted in contracting with a new firm, Glen Olivache CPA PC, to assist with the 2023 audit in 2025. These issues were documented in writing to the former firm. FHD could not finish the 2023 audit because the 2022 audit took so long with the former auditing firm. In turn, Glen Olivache CPA PC had to also do its due diligence as a new auditor and review all aspects of the organization's operations which would normally have been taken care of by a long standing auditor but under a new auditor took longer. The switch to a new auditor, while the correct choice, caused the 2023 audit to be significantly delayed. No matter the procedures FHD would have put in place to ensure timely submission, these extenuating circumstances would not have been avoided. FHD has now contracted with Glen Olivache CPA PC and will immediately begin its 2024 audit. This audit will also be out of date but should take substantially less time as Glen Olivache CPA PC will be a continuing auditor. The FHD team is currently preparing for the next audit and plans to be back on track by the end of 2026 with all audit timelines and submissions.