FAC Explorer

Audit 411913

FY End
2025-12-31
Total Expended
$1.08M
Findings
3
Programs
4
Organization: Healing Transitions, Inc. (NC)
Year: 2025 Accepted: 2026-09-24
Auditor: BALANCE & STRATEGY ADVISORS CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1236296 2025-003 Material Weakness Yes P
1236297 2025-003 Material Weakness Yes P
1236298 2025-003 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $236,935 Yes 0
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $199,435 Yes 1
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $91,000 Yes 0
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $50,000 Yes 0

Contacts

Name Title Type
LUKLMLTAGBC5 Chris Budnick Auditee
9198389800 Deetra Watson Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Healing Transitions, Inc. under programs of the federal government for the year ended December 31, 2025. The information in this Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). 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. Because the Schedule presents only a select portion of the operations of Healing Transitions, Inc., it is not intended and does not present the financial position, changes in net assets, or cash flows of the Healing Transitions, Inc.
Healing Transitions, Inc. has elected not to use up to the 15 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-003
2025-003 Preparation of the Schedule of Expenditures of Federal Awards. Federal Program Information: Coronavirus State and Local Fiscal Recovery Funds (FAL #21.027) Condition and Criteria: The Schedule of Expenditures of Federal Awards (SEFA) is prepared using source information other than the financial reports generated by the accounting system. As a result, the Organization's internally prepared SEFA did not agree to the Organization's financial records. Prior Year Audit Finding: 2024-004 Cause and Effect: The SEFA was prepared and reconciled to the amount of cash drawdowns for the year rather than total expenditures incurred for the year. This could result in a material misstatement in the SEFA. Context: This represents a systemic problem. Questioned Costs: None. Recommendation: The SEFA should be prepared and reconciled to the general ledger by an employee knowledgeable of the grant activity for the year. Someone other than the preparer should review the SEFA for accuracy and completeness to identify any errors and maintain proper internal controls over the preparation of the SEFA. Management’s Response: Healing Transitions acknowledges the findings noted in the Schedule of Findings and Questioned Costs. Management reviewed the matters identified and addressed them during the audit process in coordination with the auditors. Corrective actions included engaging an outsourced accounting organization under a three-year contract to provide stability in the finance function of the Organization. The accounting organization will reconcile grant activity reported by the organization with the general ledger on a monthly basis. All necessary adjustments have been recorded, and management believes the actions adequately address the items noted.