EIN: 260163730
UEI: XGN4JAMDAKE5
Data as of August 19, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 3, 2022. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 3, 2022, which was (1509 days ago).
What is a management decision? →Recipients of federal and state awards are required to have an appropriate system of internal controls, policies and review procedures to achieve effective and efficient operations, reliability of financial reporting, and compliance with applicable laws and regulations. During the year ended December 31, 2020, the Organization received coronavirus relief funding from the Grantor, Rhode Islance Commerce Corporation. Subsequent to December 31, 2020, the Organization returned a significant amount of materials purchased for the program to its supplier and in conjunction also returned related funding back to the Grantor. The 2020 accounting records of the Organization did not reflect the return of materials and funding, resulting in an overstatement of federal revenues and expenses relating to the Program of $234,779 and $234,994, respectively. The purchases of equipment and supplies to be distributed to recipients were recognized as program expenses upon receipt of funding from the Grantor. The goods were returned to the vendor and a refund was received in February 2021. The funds were returned to the Grantor in February 2021. Management did not recognize the liability for the return of goods and funding in the correct accounting period of 2020. Social Enterprise Greenhouse?s procedures and internal controls were unable, on a timely basis, to prevent, or detect and correct, a material error. Federal revenues and expenses were overstated by $234,779 and $234,884, respectively, requiring a corrective adjustment to the financial records. No questioned costs and no prior year finding. We recommend that Management ensure that grant revenues and expenses are recorded on the accrual basis of accounting on an ongoing basis.
Social Enterprise Greenhouse maintains and manages its financial accounting and reporting on an accrual basis as outlined in our Financial Procedures Manual. This finding is the result of an unusual refund received from a vendor in the subsequent year. To ensure SEG is in compliance with accrual accounting standards, we will incorporate an additional review of end-of-year financial statements with the COO with a particular focus on any material transactions of $5,000 or more. This will ensure that all grant revenues and expenses are recorded on the accrual basis of accounting on an ongoing basis.
Recipients of federal and state awards are required to have an appropriate system of internal controls, policies and review procedures to achieve effective and efficient operations, reliability of financial reporting, and compliance with applicable laws and regulations. All costs charged to a federal program must be supported by appropriate documentation and approvals. The Organization did not implement procedures and controls to enable the accurate programmatic allocation of employee wages and related benefits and taxes amongst activities benefitting from those costs. Accordingly, payroll costs have been allocated to federal award programs without adequate supporting documentation, including review and approvals, to ensure the propriety of such charges. Lack of internal controls, policies, and review procedures. Payroll costs are not supported by evidence and documentation to determine if they are appropriately allocated across federal awards. The program could be subject to a material liability if costs are disallowed. Questioned costs of $339,914 and no prior year finding. We recommend that Management implement a system for payroll allocations which include the proper documentation of time and effort as well as approvals relating to federal awards.
Social Enterprise Greenhouse is in the process of implementing additional controls and approvals over the allocation of employee?s time to all federal grants and awards. These controls include periodic payroll time studies and verifications signed by employees and supervisors acknowledging the allocation of their time to specific federal grants and awards on at least a quarterly basis to ensure appropriate payroll allocation reporting and controls are in place on an ongoing basis.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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