Audit 4622

FY End
2021-12-31
Total Expended
$7.57M
Findings
2
Programs
6
Organization: Lasa (WA)
Year: 2021 Accepted: 2023-11-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
2715 2021-002 Material Weakness - B
579157 2021-002 Material Weakness - B

Programs

Contacts

Name Title Type
E1ATKUQ1AEP8 Allen Arnhold Auditee
2538518689 Arleen Ibay Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: Management has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of LASA under programs of the federal government for the year ended December 31, 2021. The information in this schedule 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). Because the Schedule presents only a selected portion of the operations of LASA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of LASA.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: Management has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported in the chedule 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. Pass-through entity identifying numbers are presented where available.
Title: NOTE C - INDIRECT COST RATE Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: Management has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Management has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE D - LOAN PROGRAM WITH CONTINUING COMPLIANCE REQUIREMENTS Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: Management has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. LASA obtained loans from pass through entitied funded by U.S. Department of Housing and Urban Development. Loans outstanding include beginning of period balance plus proceeds used during the year,a s follows: CFDA No. Program Name Beginning Balance Additions during the year Ending balance 14.218 Community Development Block Grant 614,918 - 614,918 14.239 HOME Investment Partnership program 604,570 593,853 1,198,423 1,219,568 593,853, 1,813,421 Of the total balance owing, the amount of $1,211,851 is forgivable at the end of the loan terms.

Finding Details

Internal control over compliance - Allowable Cost/Cost Principles, Emergency Rental Assistance, CFDA No. 21.023, Grant no. CW2227387 #9 and SC-108720; Grant periods March 22, 2021 to December 31, 2021 and October 1, 2021 to June 30, 2022 Material Weakness. Finding No 2021-001 is applicable to the major program. As discussed in Finding 2021-001, timesheets and payroll were missing supervisory approval. Because of the failure to document approval on payroll, wages may be charged to the federal awards without support, or without approval of management. Procedures should require adequate documentation of payroll including the written approval of senior management.
Internal control over compliance - Allowable Cost/Cost Principles, Emergency Rental Assistance, CFDA No. 21.023, Grant no. CW2227387 #9 and SC-108720; Grant periods March 22, 2021 to December 31, 2021 and October 1, 2021 to June 30, 2022 Material Weakness. Finding No 2021-001 is applicable to the major program. As discussed in Finding 2021-001, timesheets and payroll were missing supervisory approval. Because of the failure to document approval on payroll, wages may be charged to the federal awards without support, or without approval of management. Procedures should require adequate documentation of payroll including the written approval of senior management.