FAC Explorer

Audit 415297

FY End
2022-12-31
Total Expended
$840,021
Findings
2
Programs
3
Organization: SIERRA SVING GRACE HMELESS PRJ (CA)
Year: 2022 Accepted: 2026-10-26
Auditor: ROJAS & ASSOCIATES CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1241198 2022-001 Material Weakness Yes L
1241199 2022-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $620,710 Yes 2
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $152,012 Yes 0
14.267 CONTINUUM OF CARE PROGRAM $67,299 Yes 0

Contacts

Name Title Type
SJ6YVKFGWCK3 Frederick J Carroll Auditee
2098775524 Brian Newton Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards ( the "Schedule") includes the federal award activity of Sierra Saving Grace Homeless Project under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations ("CRF") 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 Sierra Saving Grace Homeless Project, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of Sierra Saving Grace Homeless Project.
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.
Sierra Saving Grace Homeless Project participates in federally assisted programs. These programs are audited in accordance with Government Auditing Standards and the Single Audit Act Amendments of 1996, if applicable, in accordance with the required levels of Federal Financial Assistance. Audits of prior years have resulted in significant disallowed costs. Additionally, the grant programs are subject to audits by the granting authority, the purpose of which is to insure compliance with conditions precedent to the granting of funds. Management recorded a liability for reimbursement which may arise as the result of these audits of grant funds.
Several Acts of Congress provided relief funding to respond to the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was signed on March 27, 2020, to provide relief from the impact of the COVID-19 pandemic. In addition, the American Rescue Plan Act was signed on March 11, 2021, to provide additional assistance. Included in he Acts are provisions and funding specific to entities to protect their communities during this challenging period. During the year-ended December 31, 2022, Sierra Saving Grace Homeless Project received and expended COVlD-19 funding for authorized purposes. For reporting purposes of the Schedule, the prefix "COVlD-19" is used in the name of each federal program that has COVlD-19 related expenditures.
Sierra Saving Grace Homeless Project has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
Finding: Failure to Submit Required Federal Reporting Finding Number/Disposition: 2022-001 / Significant Noncompliance Compliance Requirement: Federal Reporting Criteria: Per Title 2 Part 200, Section 200.512 Report Submission. "The audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). Condition: Management did not obtain the required audits for entities that expend federal funds in excess of $750,000 in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Cause: Management does not have adequate internal controls and systems in place to fully adhere to federal reporting requirements. Effect: The Organization is not incompliance with the Title 2 Part 200, Section 200.512 Report Submission requirements. Questioned Costs: Unknown Recommendation: We recommend management develop and implement sufficient internal controls and systems to ensure full compliance with federal grant program requirements. Views of Responsible Officials: Refer to the Attached Management's Formal Response and Corrective Action Plan.
Finding 2022-002
Finding: Lack of Full Compliance with Program Requirements Finding Number/Disposition: 2022-002 / Noncompliance Compliance Requirement: Eligibility Applicable Program: 14.218 Community Development Block Grant (CDBG)/CARES Act (CDBG-CV) Criteria: Per review of the executed subrecipient agreement between the City of Merced (pass thru agency) and Sierra Saving Grace Homeless Project ("SSG"), SSG is required to use the CDBG funds for the acquisition and rehabilitation of properties benefitting extremely low-income, low-income, and formerly homeless individuals and families. Additionally, all participants of the program are required to enter into a 1-year lease agreement with one-year lease renewals thereafter. Condition: During our review of the documentation to determine eligibility of program participants, we noted SSG management executed leases on a month to month basis; however, we determined that the program participant was eligible to receive program benefits during our audit period. Cause: Management does not have adequate internal controls and systems in place to fully adhere to federal program requirements. Effect: The Organization is not in full compliance with the federal program requirements. Questioned Costs: Unknown Recommendation: We recommend management develop and implement sufficient internal controls and systems to ensure full compliance with federal grant program requirements. Views of Responsible Officials: Refer to the Attached Management's Formal Response and Corrective Action Plan.