FAC Explorer

Audit 9432

FY End
2023-06-30
Total Expended
$12.26M
Findings
10
Programs
12
Organization: Gateway Community Services, Inc. (FL)
Year: 2023 Accepted: 2024-01-03
Auditor: Smoak Davis & Nixon LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7267 2023-004 Significant Deficiency - P
7268 2023-004 Significant Deficiency - P
7269 2023-004 Significant Deficiency - P
7270 2023-004 Significant Deficiency - P
7271 2023-003 Significant Deficiency - P
583709 2023-004 Significant Deficiency - P
583710 2023-004 Significant Deficiency - P
583711 2023-004 Significant Deficiency - P
583712 2023-004 Significant Deficiency - P
583713 2023-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.02M - 0
93.558 Temporary Assistance for Needy Families $526,450 - 0
93.696 Certified Community Behavioral Health Clinic Expansion Grants $513,567 Yes 1
93.279 Drug Abuse and Addiction Research Programs $434,344 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $343,310 - 0
93.914 Hiv Emergency Relief Project Grants $60,223 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $48,231 Yes 1
93.498 Provider Relief Fund $43,259 - 0
10.555 National School Lunch Program $33,431 - 0
14.231 Emergency Solutions Grant Program $25,371 - 0
93.958 Block Grants for Community Mental Health Services $25,151 - 0
93.788 Opioid Str $12,748 Yes 1

Contacts

Name Title Type
HF9UJ2296JG3 Jennifer Vanzandt Auditee
9043874661 Lori Graham Auditor
No contacts on file

Notes to SEFA

Title: 1. BASIS OF ACCOUNTING Accounting Policies: The accompanying schedule of expenditures of financial awards (the Schedule) includes the federal, state and local grant activity of Gateway Community Services, Inc. and is prepared on the accrual basis of accounting. 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, Audit, and Administrative Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Gateway Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Gateway Community Services, Inc. Type A programs are those federal programs with expenditures greater than or equal to $750,000. All other programs are considered Type B. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of financial awards (the Schedule) includes the federal, state and local grant activity of Gateway Community Services, Inc. and is prepared on the accrual basis of accounting. 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, Audit, and Administrative Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Gateway Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Gateway Community Services, Inc. Type A programs are those federal programs with expenditures greater than or equal to $750,000. All other programs are considered Type B.
Title: 2. PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION Accounting Policies: The accompanying schedule of expenditures of financial awards (the Schedule) includes the federal, state and local grant activity of Gateway Community Services, Inc. and is prepared on the accrual basis of accounting. 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, Audit, and Administrative Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Gateway Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Gateway Community Services, Inc. Type A programs are those federal programs with expenditures greater than or equal to $750,000. All other programs are considered Type B. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amount presented on the Schedule for Assistance Listing Number 93.498, COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Funds) for the year ended June 30, 2023 includes $43,259 of PRF Funds received from the U.S. Department of Heath and Human Services (HHS) between January 1, 2022 to June 30, 2022. In accordance with guidance from HHS, these amounts are presented as Period 5 in the HHS PRF Reporting Portal. The $43,259 was recognized as other state and federal grants in the Organization's combined financial statements for the year ended June 30, 2022. This amount is not the total amount received and/or recognized by the Organization as other state and federal grants in the Organization's combined financial statements for the year ended June 30, 2023.
Title: 3. PASS-THROUGH AWARDS Accounting Policies: The accompanying schedule of expenditures of financial awards (the Schedule) includes the federal, state and local grant activity of Gateway Community Services, Inc. and is prepared on the accrual basis of accounting. 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, Audit, and Administrative Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Gateway Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Gateway Community Services, Inc. Type A programs are those federal programs with expenditures greater than or equal to $750,000. All other programs are considered Type B. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization receives certain federal awards and state financial assistance from pass-through awards of the State, local government and other entities. The total amount of such pass-through awards is included on the supplementary schedule of expenditures of financial awards.
Title: 4. TRANSFERS TO SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of financial awards (the Schedule) includes the federal, state and local grant activity of Gateway Community Services, Inc. and is prepared on the accrual basis of accounting. 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, Audit, and Administrative Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Gateway Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Gateway Community Services, Inc. Type A programs are those federal programs with expenditures greater than or equal to $750,000. All other programs are considered Type B. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization transferred $24,561 from contract number H79TI080743 and $78,390 for contract number H79TI085173 for the fiscal year ended June 30, 2023 to unrelated third parties.
Title: 4. MANAGING ENTITY Accounting Policies: The accompanying schedule of expenditures of financial awards (the Schedule) includes the federal, state and local grant activity of Gateway Community Services, Inc. and is prepared on the accrual basis of accounting. 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, Audit, and Administrative Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Gateway Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Gateway Community Services, Inc. Type A programs are those federal programs with expenditures greater than or equal to $750,000. All other programs are considered Type B. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization paid LSF Health Systems ("managing entity") a fee as part of contract number ME002. The managing entity has a contract with the Florida Department of Children and Family Services in which a 3.8% fee is assessed on the expenditures incurred by the subrecipients. The schedule of expenditures of financial awards reflects the net of the fee as the cash was not received from the managing entity.
Title: 5. INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of financial awards (the Schedule) includes the federal, state and local grant activity of Gateway Community Services, Inc. and is prepared on the accrual basis of accounting. 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, Audit, and Administrative Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Gateway Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Gateway Community Services, Inc. Type A programs are those federal programs with expenditures greater than or equal to $750,000. All other programs are considered Type B. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-004
Condition: Payment receipt logs were not prepared, payment receipts were posted to incorrect general ledger accounts, and no evidence was provided for review and approval of accounting for payment receipts. Criteria: Internal controls should be in place that provide reasonable assurance that payment receipts are documented as received, are properly recorded in the general ledger, and that the review and approval of accounting over payment receipts is properly documented while maintaining sufficient segregation of duties. Effect: Lack of controls over payment receipts resulted in misstatements of accounts receivable and revenue throughout the year. Recommendation: Procedures should be implemented to ensure incoming payment receipts are logged, properly recorded to the appropriate accounts, and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures have been implemented.
Finding 2023-004
Condition: Payment receipt logs were not prepared, payment receipts were posted to incorrect general ledger accounts, and no evidence was provided for review and approval of accounting for payment receipts. Criteria: Internal controls should be in place that provide reasonable assurance that payment receipts are documented as received, are properly recorded in the general ledger, and that the review and approval of accounting over payment receipts is properly documented while maintaining sufficient segregation of duties. Effect: Lack of controls over payment receipts resulted in misstatements of accounts receivable and revenue throughout the year. Recommendation: Procedures should be implemented to ensure incoming payment receipts are logged, properly recorded to the appropriate accounts, and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures have been implemented.
Finding 2023-004
Condition: Payment receipt logs were not prepared, payment receipts were posted to incorrect general ledger accounts, and no evidence was provided for review and approval of accounting for payment receipts. Criteria: Internal controls should be in place that provide reasonable assurance that payment receipts are documented as received, are properly recorded in the general ledger, and that the review and approval of accounting over payment receipts is properly documented while maintaining sufficient segregation of duties. Effect: Lack of controls over payment receipts resulted in misstatements of accounts receivable and revenue throughout the year. Recommendation: Procedures should be implemented to ensure incoming payment receipts are logged, properly recorded to the appropriate accounts, and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures have been implemented.
Finding 2023-004
Condition: Payment receipt logs were not prepared, payment receipts were posted to incorrect general ledger accounts, and no evidence was provided for review and approval of accounting for payment receipts. Criteria: Internal controls should be in place that provide reasonable assurance that payment receipts are documented as received, are properly recorded in the general ledger, and that the review and approval of accounting over payment receipts is properly documented while maintaining sufficient segregation of duties. Effect: Lack of controls over payment receipts resulted in misstatements of accounts receivable and revenue throughout the year. Recommendation: Procedures should be implemented to ensure incoming payment receipts are logged, properly recorded to the appropriate accounts, and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures have been implemented.
Finding 2023-003
Condition: Review and approval of cash disbursements were not documented. Criteria: Internal controls should be in place that provide reasonable assurance that cash disbursements are reviewed and approved. Cause: The Organization did not follow procedures to ensure documentation of the review and approval of cash disbursements. Effect: Lack of review and approval of cash disbursements could lead to inappropriate or fraudulent disbursements not being prevented or detected and corrected timely, resulting in misstatements to the financial statements. Recommendation: Procedures should be implemented to ensure cash disbursements are reviewed and approved by an individual who does not have custody or recordkeeping responsibilities. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures were implemented prior to year end.
Finding 2023-004
Condition: Payment receipt logs were not prepared, payment receipts were posted to incorrect general ledger accounts, and no evidence was provided for review and approval of accounting for payment receipts. Criteria: Internal controls should be in place that provide reasonable assurance that payment receipts are documented as received, are properly recorded in the general ledger, and that the review and approval of accounting over payment receipts is properly documented while maintaining sufficient segregation of duties. Effect: Lack of controls over payment receipts resulted in misstatements of accounts receivable and revenue throughout the year. Recommendation: Procedures should be implemented to ensure incoming payment receipts are logged, properly recorded to the appropriate accounts, and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures have been implemented.
Finding 2023-004
Condition: Payment receipt logs were not prepared, payment receipts were posted to incorrect general ledger accounts, and no evidence was provided for review and approval of accounting for payment receipts. Criteria: Internal controls should be in place that provide reasonable assurance that payment receipts are documented as received, are properly recorded in the general ledger, and that the review and approval of accounting over payment receipts is properly documented while maintaining sufficient segregation of duties. Effect: Lack of controls over payment receipts resulted in misstatements of accounts receivable and revenue throughout the year. Recommendation: Procedures should be implemented to ensure incoming payment receipts are logged, properly recorded to the appropriate accounts, and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures have been implemented.
Finding 2023-004
Condition: Payment receipt logs were not prepared, payment receipts were posted to incorrect general ledger accounts, and no evidence was provided for review and approval of accounting for payment receipts. Criteria: Internal controls should be in place that provide reasonable assurance that payment receipts are documented as received, are properly recorded in the general ledger, and that the review and approval of accounting over payment receipts is properly documented while maintaining sufficient segregation of duties. Effect: Lack of controls over payment receipts resulted in misstatements of accounts receivable and revenue throughout the year. Recommendation: Procedures should be implemented to ensure incoming payment receipts are logged, properly recorded to the appropriate accounts, and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures have been implemented.
Finding 2023-004
Condition: Payment receipt logs were not prepared, payment receipts were posted to incorrect general ledger accounts, and no evidence was provided for review and approval of accounting for payment receipts. Criteria: Internal controls should be in place that provide reasonable assurance that payment receipts are documented as received, are properly recorded in the general ledger, and that the review and approval of accounting over payment receipts is properly documented while maintaining sufficient segregation of duties. Effect: Lack of controls over payment receipts resulted in misstatements of accounts receivable and revenue throughout the year. Recommendation: Procedures should be implemented to ensure incoming payment receipts are logged, properly recorded to the appropriate accounts, and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures have been implemented.
Finding 2023-003
Condition: Review and approval of cash disbursements were not documented. Criteria: Internal controls should be in place that provide reasonable assurance that cash disbursements are reviewed and approved. Cause: The Organization did not follow procedures to ensure documentation of the review and approval of cash disbursements. Effect: Lack of review and approval of cash disbursements could lead to inappropriate or fraudulent disbursements not being prevented or detected and corrected timely, resulting in misstatements to the financial statements. Recommendation: Procedures should be implemented to ensure cash disbursements are reviewed and approved by an individual who does not have custody or recordkeeping responsibilities. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures were implemented prior to year end.