EIN: 430895648
UEI: GSA_MIGRATION
Audited by: KERBER ECK & BRAECKEL LLP
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 29, 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 March 29, 2023 (1254 days ago).
What is a management decision? →Records were not maintained to support the distribution of charges to Federal awards for the salaries and benefits of three administrative employees and one independent contractor who worked on both a Federal award and non-Federal award. Cause: The distribution of charges to Federal awards was based on budget estimates ranging from 25% to 50%. Effect: Charges to Federal awards for salaries and benefits are not adequately supported in accordance with 2 CFR 200.430. Questioned cost: $81,497 Context: Of the $500,260 charged to the Federal award, $81,497 represents the distribution of salaries and benefits that were not adequately supported. Repeat Finding: N/A Recommendation: We recommend that records be maintained to support the distribution of charges to Federal awards for salaries and benefits in accordance with 2 CFR 200.430. Views of Responsible Official: We disagree with the auditor's finding. The Grantor instructed Magdala to allocate 25% to 50% for management working on the grant. The allocation was approved in the budget signed by the Grantor and submitted monthly bills reflecting the percentages. The invoices were approved and paid by the Grantor. We believe our actions and payment from the Grantor constitute our documentation.
Show full finding ▾Hide full finding ▴Federal Program: COVID 19 - Emergency Solutions Grant Program CFDA No: 14.231 Federal Agency: Department of Housing and Urban Development Pass-through Agency: City of St. Louis, Missouri Award No: E-20-MW-29-0006 Award Period: December 1, 2020 through December 31, 2021 Compliance: Allowable Cost Criteria: In accordance with 2 CFR 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award or a Federal award and a non-Federal award. Budget estimates alone do not qualify as support for charges to Federal award. Condition: Records were not maintained to support the distribution of charges to Federal awards for the salaries and benefits of three administrative employees and one independent contractor who worked on both a Federal award and non-Federal award. Cause: The distribution of charges to Federal awards was based on budget estimates ranging from 25% to 50%. Effect: Charges to Federal awards for salaries and benefits are not adequately supported in accordance with 2 CFR 200.430. Questioned cost: $81,497 Context: Of the $500,260 charged to the Federal award, $81,497 represents the distribution of salaries and benefits that were not adequately supported. Repeat Finding: N/A Recommendation: We recommend that records be maintained to support the distribution of charges to Federal awards for salaries and benefits in accordance with 2 CFR 200.430. Views of Responsible Official: We disagree with the auditor's finding. The Grantor instructed Magdala to allocate 25% to 50% for management working on the grant. The allocation was approved in the budget signed by the Grantor and submitted monthly bills reflecting the percentages. The invoices were approved and paid by the Grantor. We believe our actions and payment from the Grantor constitute our documentation.
Audit Finding Reference: 2021-002 Planned Corrective Action: * We disagree with the auditor's finding. The Grantor instructed Magdala to allocate 25% to 50% for management working on the grant. The allocation was approved in the budget signed by the Grantor and submitted monthly bills reflecting the percentages. The invoices were approved and paid by the Grantor. We believe our actions and payment from the Grantor constitute our documentation.
Indirect costs were charged to the Federal award in the form of a monthly management fee. Magdala does not have an approved federally recognized indirect cost rate. There is no evidence in the contract between Magdala and the pass-through entity of a negotiated indirect cost rate to support the charge for the management fee. Cause: Magdala represents that the monthly management fee was subject to a verbal agreement with the pass-through entity. Effect: Indirect costs charged to the Federal award were not adequately supported in accordance with 2 CFR 200.332. Questioned cost: $28,800 Context: Indirect costs in the form of management fees totaled $28,800 and represent 5.6% of the total charges to the Federal award. Repeat Finding: N/A Recommendation: We recommend that use of a negotiated indirect cost rate or de minimis indirect cost rate be clearly documented in the contract between Magdala and the pass-through. Views of Responsible Official: We disagree with the auditor's finding. We believe our actions meet the requirements of the program. We contacted the Grantor to discuss how to reflect the cost of individuals working directly on the grant. We were given verbal approval to invoice a monthly management fee. We submitted monthly invoices showing the management fee. The Grantor approved and paid the invoices. We believe our actions and payment from the Grantor constitute our documentation.
Show full finding ▾Hide full finding ▴Federal Program: COVID 19 ? Coronavirus Relief Fund CFDA No: 21.019 Federal Agency: Department of the Treasury Pass-through Agency: City of St. Louis, Missouri Award No: N/A Award Period: April 30, 2020 through July 31, 2021 Compliance: Allowable Cost Criteria: In accordance with 2 CFR 200.332, indirect costs charged to the Federal award must be based on an approved federally recognized indirect cost rate negotiated between the subrecipient and the Federal Government. If no approved rate exists, the pass-through entity must determine the appropriate rate in collaboration with the subrecipient, which is either: (A) the negotiated indirect cost rate between the pass-through entity and the subrecipient; which can be based on a prior negotiated rate between a different pass-through entity and the same subrecipient. If basing the rate on a previously negotiated rate, the pass-through entity is not required to collect information justifying this rate, but may elect to do so; (B) The de minimis indirect cost rate. Condition: Indirect costs were charged to the Federal award in the form of a monthly management fee. Magdala does not have an approved federally recognized indirect cost rate. There is no evidence in the contract between Magdala and the pass-through entity of a negotiated indirect cost rate to support the charge for the management fee. Cause: Magdala represents that the monthly management fee was subject to a verbal agreement with the pass-through entity. Effect: Indirect costs charged to the Federal award were not adequately supported in accordance with 2 CFR 200.332. Questioned cost: $28,800 Context: Indirect costs in the form of management fees totaled $28,800 and represent 5.6% of the total charges to the Federal award. Repeat Finding: N/A Recommendation: We recommend that use of a negotiated indirect cost rate or de minimis indirect cost rate be clearly documented in the contract between Magdala and the pass-through. Views of Responsible Official: We disagree with the auditor's finding. We believe our actions meet the requirements of the program. We contacted the Grantor to discuss how to reflect the cost of individuals working directly on the grant. We were given verbal approval to invoice a monthly management fee. We submitted monthly invoices showing the management fee. The Grantor approved and paid the invoices. We believe our actions and payment from the Grantor constitute our documentation.
Audit Finding Reference: 2021-003 Planned Corrective Action: * We disagree with the auditor's finding. We believe our actions meet the requirements of the program. We contacted the Grantor to discuss how to reflect the cost of individuals working directly on the grant. We were given verbal approval to invoice a monthly management fee. We submitted monthly invoices showing the management fee. The Grantor approved and paid the invoices. We believe our actions and payment from the Grantor constitute our documentation.
FAC accepted this audit on December 28, 2017 — management decision was due June 28, 2018.
FAC accepted this audit on January 17, 2017 — management decision was due July 17, 2017.
GSA_MIGRATION
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GSA_MIGRATION
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