FAC Explorer

Audit 405290

FY End
2025-09-30
Total Expended
$1.84M
Findings
1
Programs
1
Organization: POVERTY & SOCIAL REFORM INSTITUTE, INC.D/B/A LEAPS AND BOUNDS FAMILY SERVICES (MI)
Year: 2025 Accepted: 2026-06-29
Auditor: UHY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1220084 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $1.84M Yes 1

Contacts

Name Title Type
TQKAN1171AS6 Steve Gay Auditee
5866199997 Karen Shafik Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the Poverty and Social Reform Institute, Inc. d/b/a Leaps and Bounds Family Services (the “Institute”) for the year ended September 30, 2025. Expenditures reported on the Schedule are reported on the same basis of accounting, the accrual basis, as the financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. For purposes of charging indirect costs to federal awards, the Institute has not elected to use the 15% de minimis cost rate. Because the Schedule presents only a selected portion of the operations of the Institute, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Institute.

Finding Details

Finding 2025-001
2025-001: Written Policies Required by the Uniform Guidance Finding Type: significant deficiency and noncompliance Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards to establish and maintain effective internal control over federal awards that provides reasonable assurance that the entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Institute did not have formal written federal policies and procedures that document the processs and controls used to administer federal awards, including procedures for compliance with applicable federal program requirements under Uniform Guidance. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: Without written federal policies and procedures, there is an increased risk that federal award requirements may not be consistently applied, monitored, or retain as institutional knowledge. Perspective: As a condition of accepting a federal award, the Institute should have required policies and procedures in place. Initial year of finding: 2025 Recommendation: We recommend the Institute develop and implement written federal policies and procedures addressing the administration of federal awards to ensure compliance with Uniform Guidance. The policies should address the following key compliance areas: allowable costs, cash management, procedures, and conflicts of interest. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.