FAC Explorer

Audit 49421

FY End
2022-06-30
Total Expended
$6.20M
Findings
4
Programs
8
Organization: Bread for the City, Inc. (DC)
Year: 2022 Accepted: 2023-03-09
Auditor: Bert Smith & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
57939 2022-001 Significant Deficiency - L
57940 2022-001 Significant Deficiency - L
634381 2022-001 Significant Deficiency - L
634382 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $3.60M Yes 0
93.224 Health Center Program $1.26M Yes 1
93.527 Grants for New and Expanded Services Under Health Center Program $550,215 Yes 1
93.217 Family Planning Services $82,473 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $76,767 Yes 0
14.252 Capacity Building for Community Development and Affordable Housing $45,000 - 0
97.024 Amercan Rescue Plan Emergency Food and Shelter Program $38,100 - 0
97.024 Emergency Food and Shelter Program $25,365 - 0

Contacts

Name Title Type
UJW6SN5K6ND1 Fatou D. Toure Auditee
2023867601 Dorothy Page Proctor Auditor
No contacts on file

Notes to SEFA

Title: 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: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Bread for the City, Inc. and Bread Inc. (collectively referred to as the Organization), under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 the Organization, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Organization.
Title: LOAN AND LOAN GUARANTEES 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: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. The Organization received one Community Development Block Grant (CDBG). As of June 30, 2022, the outstanding balance on the loan totaled $2,880,000.
Title: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS 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: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. Federal awards expenditures are reported on the Statement of Functional Expenses as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Expenditures of Federal Awards due to program expenditures exceeding grant or contract budget limitations which are not included as federal awards.

Finding Details

Finding 2022-001
CRITERIA: Each entity must file various financial and special reports. Additionally, the requirements stated that the submitted reports should be supported by the underlying financial data and presented in accordance with program requirements. CONDITION: During our review of the SF-425 reports, we selected two out of the four submissions and noted that the annual report for May 31, 2022, although filed timely included transactions for the month of June 30, 2022, which was outside of the stipulated reporting period. CAUSE: It appears that management mistakenly included June 2022 financial transactions in the May 31, 2022 annual report. EFFECT: The Organization is not in compliance with stated provisions for preparation of the annual report and information outside of the reporting period was included in the annual Federal Financial Report. CONTEXT: This is a condition identified based on review of the Compliance Supplement requirements. QUESTIONED COST: $161,928, which represents June 2022 expenses, identified as mistakenly included in the May 31, 2022 annual report. RECOMMENDATION: We recommend that the Organization in the preparation of its annual report assure the information submitted is proper, accurate, and consistent with the stipulated guidelines. VIEWS OF RESPONSIBLE MANAGEMENT OFFICIAL AND CORRECTIVE ACTION PLAN: Management agrees to the above finding. Corrective action is being taken to correct and resubmit the final report.
Finding 2022-001
CRITERIA: Each entity must file various financial and special reports. Additionally, the requirements stated that the submitted reports should be supported by the underlying financial data and presented in accordance with program requirements. CONDITION: During our review of the SF-425 reports, we selected two out of the four submissions and noted that the annual report for May 31, 2022, although filed timely included transactions for the month of June 30, 2022, which was outside of the stipulated reporting period. CAUSE: It appears that management mistakenly included June 2022 financial transactions in the May 31, 2022 annual report. EFFECT: The Organization is not in compliance with stated provisions for preparation of the annual report and information outside of the reporting period was included in the annual Federal Financial Report. CONTEXT: This is a condition identified based on review of the Compliance Supplement requirements. QUESTIONED COST: $161,928, which represents June 2022 expenses, identified as mistakenly included in the May 31, 2022 annual report. RECOMMENDATION: We recommend that the Organization in the preparation of its annual report assure the information submitted is proper, accurate, and consistent with the stipulated guidelines. VIEWS OF RESPONSIBLE MANAGEMENT OFFICIAL AND CORRECTIVE ACTION PLAN: Management agrees to the above finding. Corrective action is being taken to correct and resubmit the final report.
Finding 2022-001
CRITERIA: Each entity must file various financial and special reports. Additionally, the requirements stated that the submitted reports should be supported by the underlying financial data and presented in accordance with program requirements. CONDITION: During our review of the SF-425 reports, we selected two out of the four submissions and noted that the annual report for May 31, 2022, although filed timely included transactions for the month of June 30, 2022, which was outside of the stipulated reporting period. CAUSE: It appears that management mistakenly included June 2022 financial transactions in the May 31, 2022 annual report. EFFECT: The Organization is not in compliance with stated provisions for preparation of the annual report and information outside of the reporting period was included in the annual Federal Financial Report. CONTEXT: This is a condition identified based on review of the Compliance Supplement requirements. QUESTIONED COST: $161,928, which represents June 2022 expenses, identified as mistakenly included in the May 31, 2022 annual report. RECOMMENDATION: We recommend that the Organization in the preparation of its annual report assure the information submitted is proper, accurate, and consistent with the stipulated guidelines. VIEWS OF RESPONSIBLE MANAGEMENT OFFICIAL AND CORRECTIVE ACTION PLAN: Management agrees to the above finding. Corrective action is being taken to correct and resubmit the final report.
Finding 2022-001
CRITERIA: Each entity must file various financial and special reports. Additionally, the requirements stated that the submitted reports should be supported by the underlying financial data and presented in accordance with program requirements. CONDITION: During our review of the SF-425 reports, we selected two out of the four submissions and noted that the annual report for May 31, 2022, although filed timely included transactions for the month of June 30, 2022, which was outside of the stipulated reporting period. CAUSE: It appears that management mistakenly included June 2022 financial transactions in the May 31, 2022 annual report. EFFECT: The Organization is not in compliance with stated provisions for preparation of the annual report and information outside of the reporting period was included in the annual Federal Financial Report. CONTEXT: This is a condition identified based on review of the Compliance Supplement requirements. QUESTIONED COST: $161,928, which represents June 2022 expenses, identified as mistakenly included in the May 31, 2022 annual report. RECOMMENDATION: We recommend that the Organization in the preparation of its annual report assure the information submitted is proper, accurate, and consistent with the stipulated guidelines. VIEWS OF RESPONSIBLE MANAGEMENT OFFICIAL AND CORRECTIVE ACTION PLAN: Management agrees to the above finding. Corrective action is being taken to correct and resubmit the final report.