FAC Explorer

Finding 574978 (2024-004)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-08-28
Audit: 365189
Organization: Leadership, Education, and Athletics in Partnership (CT)
Auditor: Cbiz CPAS PC

AI Summary

  • Core Issue: The Organization lacks written policies and procedures for federal awards, violating OMB's Uniform Guidance.
  • Impacted Requirements: This affects documentation for allowable costs and employee travel, which are essential for compliance.
  • Recommended Follow-up: Develop and implement the necessary policies and procedures to ensure compliance with federal requirements.

Finding Text

Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following based on the compliance requirements noted above: • Determination of allowable costs • Employee travel Condition The Organization does not have written policies and procedures in place related to federal awards, as required under the Uniform Guidance. Cause The Organization has not developed written formal documentation of internal controls to encompass all required areas per the Uniform Guidance. Effect or Potential Effect Failure to have written Uniform Guidance policies and procedures constitute noncompliance with federal audit requirements and could impact subsequent federal funding. No questioned costs are reported as this requirement is procedural in nature. Recommendation The Organization should address the weakness noted above and develop policies and procedures related to federal awards in order to comply with the Uniform Guidance. Views of Responsible Officials Management’s corrective action plan is included at the end of this report.

Corrective Action Plan

Planned Corrective Action: LEAP will hire a local CPA firm with expertise in nonprofit accounting inclusive of federal reporting requirements to support the updating of the finance manual to more fully include federal reporting requirements and applicable procedures. Planned Implementation Date of Corrective Action: Implementation to begin September 1st, 2025, with completion by December 31 , 2025. Person Responsible for Corrective Action: Shadine Alveranga, Managing Director of Finance Henry Fernandez, Executive Director

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $90,553
84.010 Title I Grants to Local Educational Agencies $50,000
14.218 Community Development Block Grants/entitlement Grants $30,654
10.872 Healthy Food Financing Initiative $27,341