FAC Explorer

Audit 53465

FY End
2022-12-31
Total Expended
$54.44M
Findings
2
Programs
23
Organization: Opportunity Council (WA)
Year: 2022 Accepted: 2023-09-27
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50734 2022-001 Significant Deficiency - I
627176 2022-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.18M Yes 0
21.023 Emergency Rental Assistance Program $2.80M Yes 0
14.218 Community Development Block Grants/entitlement Grants $794,833 Yes 0
14.231 Emergency Solutions Grant Program $526,513 - 0
93.568 Low-Income Home Energy Assistance $431,146 - 0
81.042 Weatherization Assistance for Low-Income Persons $328,832 - 0
93.569 Community Services Block Grant $285,679 - 0
14.239 Home Investment Partnerships Program $150,000 Yes 0
93.600 Head Start $134,781 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $133,190 Yes 0
14.267 Continuum of Care Program $117,526 - 0
93.575 Child Care and Development Block Grant $101,484 - 0
81.999 Sustainable Energy for Homes and Business $71,392 - 0
84.181 Special Education-Grants for Infants and Families $49,608 - 0
64.033 Va Supportive Services for Veteran Families Program $43,219 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $42,971 - 0
10.558 Child and Adult Care Food Program $40,074 - 0
93.778 Medical Assistance Program $27,078 - 0
92.300 Home Chdo $23,404 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $22,033 - 0
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $14,694 - 0
93.434 Every Student Succeeds Act/preschool Development Grants $7,104 - 0
93.558 Temporary Assistance for Needy Families $261 - 0

Contacts

Name Title Type
M7ZPCCA7W391 David Foreman Auditee
4254789314 Bryce Rassilyer 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 for all awards with the exception of Assistance Listing Numbers 21.023 and 21.027, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The accompanying schedule of expenditures of federal awards includes indirect costs, calculated at 12% of modified total direct federal expenditures. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Council under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of 2 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 the Council, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Council.
Title: Programs that Include Federal and State Funds 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 for all awards with the exception of Assistance Listing Numbers 21.023 and 21.027, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The accompanying schedule of expenditures of federal awards includes indirect costs, calculated at 12% of modified total direct federal expenditures. The Community Development Block Grant #2019-0370 is funded by both federal and state funding. The program expenditures are tracked as a program with no clear allocation of the funding source. For purposes of the Schedule, the amount reported under this grant includes state funding.
Title: Federal Loans 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 for all awards with the exception of Assistance Listing Numbers 21.023 and 21.027, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The accompanying schedule of expenditures of federal awards includes indirect costs, calculated at 12% of modified total direct federal expenditures. Home Investment Partnership Program(14.239)- Balance outstanding at the end of the audit period were 1,033,315. Community Development Block Grant (14.228)-Balance outstanding at the end of the audit period were 698,228. Community Development Block Grant (14.228)-Balance outstanding at the end of the audit period were 169,703. Home Investment Partnership Program(14.239)-Balance outstanding at the end of the audit period were 683,081.Home Investment Partnership Program(14.239)-Balance outstanding at the end of the audit period were 344,212.Home Investment Partnership Program(14.239)-Balance outstanding at the end of the audit period were 502,000.Home Investment Partnership Program(14.239)-Balance outstanding at the end of the audit period were 150,000.Community Development Block Grant(14.218)-Balance outstanding at the end of the audit period were 32,642.Community Development Block Grant(14.218)-Balance outstanding at the end of the audit period were 794,833.

Finding Details

Finding 2022-001
Type of Finding: Significant Deficiency in Internal Control over Compliance Program Name/ALN Title: Emergency Rental Assistance Program Federal Assistance Listing Number: 21.027 Federal Agency: Department of Treasury Award Period: 1/1/2022 ? 12/31/2022 Federal Award Number: 21-4619C-130 Criteria or specific requirement: 2 CFR 200.318(i) states that "the non-Federal entity must maintain record sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price". In addition, 2 CFR 200.320(a)(2)(i) states that "... If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity". Per the Organization's written procurement policy, the adequate number of sources is determined to be three. Condition: For the entire population (two disbursements from one procurement), documentation was not retained for the adequate number of price comparisons prior to exercising the procurement, as required and stated in the Organization's written procurement policy. Context: A sample of two disbursements from a population of one procurement transaction charged to the major program that exceeded the Organization's established micro purchase threshold of $10,000. The transaction was found to be out of compliance with the Procurement requirements, as documentation was not retained for the adequate number of price comparisons. Cause: An employee charged with the procurement process for these transactions misinterpreted the aggregation rules between capitalization and procurement thresholds, and therefore did not obtain nor retain three contemporaneous quotes. Effect: Without adequate records retained, the Organization is at risk of noncompliance with the standards of Procurement. Questioned Costs: Unknown Recommendation: Opportunity Council has already taken steps to communicate the error with the applicable employee and is currently implementing an additional level of fiscal review earlier in the procurement process to ensure that documentation exists prior to procurement and that it is retained with the accounting record. We recommend moving forward with the additional layer of review and emphasizing the importance of the procurement standards and established policy to all authorized purchasers within the Organization. Views of responsible officials and planned corrective actions: Management accepts the finding and has provided its corrective action plan.
Finding 2022-001
Type of Finding: Significant Deficiency in Internal Control over Compliance Program Name/ALN Title: Emergency Rental Assistance Program Federal Assistance Listing Number: 21.027 Federal Agency: Department of Treasury Award Period: 1/1/2022 ? 12/31/2022 Federal Award Number: 21-4619C-130 Criteria or specific requirement: 2 CFR 200.318(i) states that "the non-Federal entity must maintain record sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price". In addition, 2 CFR 200.320(a)(2)(i) states that "... If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity". Per the Organization's written procurement policy, the adequate number of sources is determined to be three. Condition: For the entire population (two disbursements from one procurement), documentation was not retained for the adequate number of price comparisons prior to exercising the procurement, as required and stated in the Organization's written procurement policy. Context: A sample of two disbursements from a population of one procurement transaction charged to the major program that exceeded the Organization's established micro purchase threshold of $10,000. The transaction was found to be out of compliance with the Procurement requirements, as documentation was not retained for the adequate number of price comparisons. Cause: An employee charged with the procurement process for these transactions misinterpreted the aggregation rules between capitalization and procurement thresholds, and therefore did not obtain nor retain three contemporaneous quotes. Effect: Without adequate records retained, the Organization is at risk of noncompliance with the standards of Procurement. Questioned Costs: Unknown Recommendation: Opportunity Council has already taken steps to communicate the error with the applicable employee and is currently implementing an additional level of fiscal review earlier in the procurement process to ensure that documentation exists prior to procurement and that it is retained with the accounting record. We recommend moving forward with the additional layer of review and emphasizing the importance of the procurement standards and established policy to all authorized purchasers within the Organization. Views of responsible officials and planned corrective actions: Management accepts the finding and has provided its corrective action plan.