FAC Explorer

Audit 5138

FY End
2022-12-31
Total Expended
$3.42M
Findings
12
Programs
8
Organization: Aids Outreach Center (TX)
Year: 2022 Accepted: 2023-12-04
Auditor: Logan & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3143 2022-001 Significant Deficiency Yes L
3144 2022-002 Material Weakness Yes B
3145 2022-003 Material Weakness Yes B
3146 2022-003 Material Weakness Yes B
3147 2022-002 Material Weakness Yes B
3148 2022-001 Significant Deficiency Yes L
579585 2022-001 Significant Deficiency Yes L
579586 2022-002 Material Weakness Yes B
579587 2022-003 Material Weakness Yes B
579588 2022-003 Material Weakness Yes B
579589 2022-002 Material Weakness Yes B
579590 2022-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.914 Hiv Emergency Relief Project Grants $1.16M Yes 2
93.917 Hiv Care Formula Grants $626,278 Yes 1
12.241 Housing Opportunities for Persons with Aids $250,590 - 0
93.940 Hiv Prevention Activities_health Department Based $155,576 - 0
97.024 Emergency Food and Shelter National Board Program $76,688 - 0
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $41,058 - 0
21.027 American Rescue Plan Act-Arpa $10,425 - 0
14.267 Rapid Housing Assistance $10,166 - 0

Contacts

Name Title Type
X9J8YEUNFJJ4 Kelly Allen Gray Auditee
8173351994 Thaland D Logan Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of AIDS Outreach Center, Inc. (AOC) for the year ended December 31, 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 AOC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AOC. Relationship to Financial Statements Expenditures incurred under the Federal award programs were reported in the basic financial statements. Summary of Significant 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. Pass-through entity identifying numbers are presented where available. Indirect Cost Rate AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors.. Subrecipients AOC did not provide federal awards to subrecipients. De Minimis Rate Used: N Rate Explanation: AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors.. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of AIDS Outreach Center, Inc. (AOC) for the year ended December 31, 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 AOC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AOC.
Title: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of AIDS Outreach Center, Inc. (AOC) for the year ended December 31, 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 AOC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AOC. Relationship to Financial Statements Expenditures incurred under the Federal award programs were reported in the basic financial statements. Summary of Significant 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. Pass-through entity identifying numbers are presented where available. Indirect Cost Rate AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors.. Subrecipients AOC did not provide federal awards to subrecipients. De Minimis Rate Used: N Rate Explanation: AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors.. Relationship to Financial Statements Expenditures incurred under the Federal award programs were reported in the basic financial statements.
Title: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of AIDS Outreach Center, Inc. (AOC) for the year ended December 31, 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 AOC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AOC. Relationship to Financial Statements Expenditures incurred under the Federal award programs were reported in the basic financial statements. Summary of Significant 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. Pass-through entity identifying numbers are presented where available. Indirect Cost Rate AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors.. Subrecipients AOC did not provide federal awards to subrecipients. De Minimis Rate Used: N Rate Explanation: AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors.. Summary of Significant 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. Pass-through entity identifying numbers are presented where available
Title: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of AIDS Outreach Center, Inc. (AOC) for the year ended December 31, 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 AOC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AOC. Relationship to Financial Statements Expenditures incurred under the Federal award programs were reported in the basic financial statements. Summary of Significant 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. Pass-through entity identifying numbers are presented where available. Indirect Cost Rate AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors.. Subrecipients AOC did not provide federal awards to subrecipients. De Minimis Rate Used: N Rate Explanation: AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors.. Indirect Cost Rate AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors..
Title: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of AIDS Outreach Center, Inc. (AOC) for the year ended December 31, 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 AOC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AOC. Relationship to Financial Statements Expenditures incurred under the Federal award programs were reported in the basic financial statements. Summary of Significant 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. Pass-through entity identifying numbers are presented where available. Indirect Cost Rate AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors.. Subrecipients AOC did not provide federal awards to subrecipients. De Minimis Rate Used: N Rate Explanation: AOC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance and continues to use the cost allocation plan negotiated individually with its grantors.. Subrecipients AOC did not provide federal awards to subrecipients.

Finding Details

Finding 2022-001
Criteria: All requests for reimbursements (RFRs) should be supported by expenditures in the general ledger. Condition: Auditors were unable to reconcile grant RFR totals to the grant general ledger. In total, expenses per the grant RFRs were less than expenses per the grant general ledger. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. At that time, the interim management did not have the background with the grant RFR submitted necessary to reconcile to the grant general ledger. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s controls over the grant RFR process were not sufficiently implemented to avoid the risk of noncompliance related to proper recordkeeping for reporting documentation. Questioned costs: None Recommendation: The Organization should maintain documentation of all allowable costs included on the grant RFRs in the grant general ledger.
Finding 2022-002
Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During review of personnel expenses, we noted that 14 out of 40 sampled personnel costs did not recalculate based on the employee’s pay rate and hours spent on the grant per timesheet. Further, we noted that 7 of 40 employee timesheets were not approved by supervisor and/or timesheet not signed by employee. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. The interim management did not ensure personnel costs charged to grant were supported by timesheets. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s reporting of grant time and effort is not fully documented, in accordance with the Uniform Guidance requirements. Questioned costs: $2,438.05. Recommendation: RFRs should be reviewed in detail to ensure personnel expenses are supported by timesheets.
Finding 2022-003
Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During review of personnel expenses, we noted that 5 out of 40 sampled personnel costs did not recalculate based on the employee’s pay rate and hours spent on the grant per timesheet. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. The interim management did not ensure personnel costs charged to grant were supported by timesheets. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s reporting of grant time and effort is not fully documented, in accordance with the Uniform Guidance requirements. Questioned costs: $1,120.41. Recommendation: RFRs should be reviewed in detail to ensure personnel expenses are supported by timesheets.
Finding 2022-003
Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During review of personnel expenses, we noted that 5 out of 40 sampled personnel costs did not recalculate based on the employee’s pay rate and hours spent on the grant per timesheet. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. The interim management did not ensure personnel costs charged to grant were supported by timesheets. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s reporting of grant time and effort is not fully documented, in accordance with the Uniform Guidance requirements. Questioned costs: $1,120.41. Recommendation: RFRs should be reviewed in detail to ensure personnel expenses are supported by timesheets.
Finding 2022-002
Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During review of personnel expenses, we noted that 14 out of 40 sampled personnel costs did not recalculate based on the employee’s pay rate and hours spent on the grant per timesheet. Further, we noted that 7 of 40 employee timesheets were not approved by supervisor and/or timesheet not signed by employee. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. The interim management did not ensure personnel costs charged to grant were supported by timesheets. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s reporting of grant time and effort is not fully documented, in accordance with the Uniform Guidance requirements. Questioned costs: $2,438.05. Recommendation: RFRs should be reviewed in detail to ensure personnel expenses are supported by timesheets.
Finding 2022-001
Criteria: All requests for reimbursements (RFRs) should be supported by expenditures in the general ledger. Condition: Auditors were unable to reconcile grant RFR totals to the grant general ledger. In total, expenses per the grant RFRs were less than expenses per the grant general ledger. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. At that time, the interim management did not have the background with the grant RFR submitted necessary to reconcile to the grant general ledger. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s controls over the grant RFR process were not sufficiently implemented to avoid the risk of noncompliance related to proper recordkeeping for reporting documentation. Questioned costs: None Recommendation: The Organization should maintain documentation of all allowable costs included on the grant RFRs in the grant general ledger.
Finding 2022-001
Criteria: All requests for reimbursements (RFRs) should be supported by expenditures in the general ledger. Condition: Auditors were unable to reconcile grant RFR totals to the grant general ledger. In total, expenses per the grant RFRs were less than expenses per the grant general ledger. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. At that time, the interim management did not have the background with the grant RFR submitted necessary to reconcile to the grant general ledger. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s controls over the grant RFR process were not sufficiently implemented to avoid the risk of noncompliance related to proper recordkeeping for reporting documentation. Questioned costs: None Recommendation: The Organization should maintain documentation of all allowable costs included on the grant RFRs in the grant general ledger.
Finding 2022-002
Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During review of personnel expenses, we noted that 14 out of 40 sampled personnel costs did not recalculate based on the employee’s pay rate and hours spent on the grant per timesheet. Further, we noted that 7 of 40 employee timesheets were not approved by supervisor and/or timesheet not signed by employee. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. The interim management did not ensure personnel costs charged to grant were supported by timesheets. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s reporting of grant time and effort is not fully documented, in accordance with the Uniform Guidance requirements. Questioned costs: $2,438.05. Recommendation: RFRs should be reviewed in detail to ensure personnel expenses are supported by timesheets.
Finding 2022-003
Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During review of personnel expenses, we noted that 5 out of 40 sampled personnel costs did not recalculate based on the employee’s pay rate and hours spent on the grant per timesheet. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. The interim management did not ensure personnel costs charged to grant were supported by timesheets. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s reporting of grant time and effort is not fully documented, in accordance with the Uniform Guidance requirements. Questioned costs: $1,120.41. Recommendation: RFRs should be reviewed in detail to ensure personnel expenses are supported by timesheets.
Finding 2022-003
Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During review of personnel expenses, we noted that 5 out of 40 sampled personnel costs did not recalculate based on the employee’s pay rate and hours spent on the grant per timesheet. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. The interim management did not ensure personnel costs charged to grant were supported by timesheets. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s reporting of grant time and effort is not fully documented, in accordance with the Uniform Guidance requirements. Questioned costs: $1,120.41. Recommendation: RFRs should be reviewed in detail to ensure personnel expenses are supported by timesheets.
Finding 2022-002
Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During review of personnel expenses, we noted that 14 out of 40 sampled personnel costs did not recalculate based on the employee’s pay rate and hours spent on the grant per timesheet. Further, we noted that 7 of 40 employee timesheets were not approved by supervisor and/or timesheet not signed by employee. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. The interim management did not ensure personnel costs charged to grant were supported by timesheets. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s reporting of grant time and effort is not fully documented, in accordance with the Uniform Guidance requirements. Questioned costs: $2,438.05. Recommendation: RFRs should be reviewed in detail to ensure personnel expenses are supported by timesheets.
Finding 2022-001
Criteria: All requests for reimbursements (RFRs) should be supported by expenditures in the general ledger. Condition: Auditors were unable to reconcile grant RFR totals to the grant general ledger. In total, expenses per the grant RFRs were less than expenses per the grant general ledger. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. At that time, the interim management did not have the background with the grant RFR submitted necessary to reconcile to the grant general ledger. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s controls over the grant RFR process were not sufficiently implemented to avoid the risk of noncompliance related to proper recordkeeping for reporting documentation. Questioned costs: None Recommendation: The Organization should maintain documentation of all allowable costs included on the grant RFRs in the grant general ledger.