EIN: 460809713
UEI: PKV9SN98UH16
Audited by: Clark Nuber PS
Oversight agency: 93 [Department of Health and Human Services]
View federal awards & risk assessment →
Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on July 1, 2026. 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 January 1, 2027 (117 days from today).
What is a management decision? →Section III - Federal Award Findings and Questioned Costs Finding 2025-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Health and Human Services Program Titles: Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing Number: 93.566 Award Number: 2134-30265 Award Period: October 1, 2021 - September 30, 2025 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, costs must be necessary and reasonable. SOWA’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During the testing of allowable costs, there were two instances where costs that were not necessary or reasonable were directly allocated to the grant. Questioned Costs $118 - Known Questioned Costs were computed based on the accumulation of the portion of transactions tested that were deemed not necessary and reasonable and were confirmed noncompliant. Cause SOWA’s operation of internal controls was not sufficient to ensure that unnecessary/reasonable costs charged to federal awards were not charged to the grant. Effect Based on the exception noted in the operation of internal controls, unallowable costs could be charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that SOWA ensures current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Show full finding ▾Hide full finding ▴Section III - Federal Award Findings and Questioned Costs Finding 2025-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Health and Human Services Program Titles: Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing Number: 93.566 Award Number: 2134-30265 Award Period: October 1, 2021 - September 30, 2025 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, costs must be necessary and reasonable. SOWA’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During the testing of allowable costs, there were two instances where costs that were not necessary or reasonable were directly allocated to the grant. Questioned Costs $118 - Known Questioned Costs were computed based on the accumulation of the portion of transactions tested that were deemed not necessary and reasonable and were confirmed noncompliant. Cause SOWA’s operation of internal controls was not sufficient to ensure that unnecessary/reasonable costs charged to federal awards were not charged to the grant. Effect Based on the exception noted in the operation of internal controls, unallowable costs could be charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that SOWA ensures current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Contact Person(s): Matt Fadich Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Not applicable Corrective action planned: Task: Reviewed all nonpayroll transactions charged to federal programs and implemented coding and documentation corrections for 2026. Anticipated completion date: Done Task: Updated procedures addressing the documentation and allowability standards for nonpayroll expenditures directly charged to federal grant programs. Anticipated completion date: Done Task: Train staff with purchasing and coding authority on updated procedures, including documentation requirements and the distinction between allowable program charges and costs that may not be directly charged to federal grants. Anticipated completion date: June 30, 2026 Task: Establish a quarterly review process to identify and address potentially questionable nonpayroll transactions charged to federal programs on an ongoing basis. Anticipated completion date: June 30, 2026 School’s Out Washington considers the above steps sufficient and adequate to close the gaps in the coding of transactions that may have permitted unallowable costs to post to grants for YE2025. These steps will remedy the lapse in effectiveness experienced by School’s Out Washington’s internal controls over allowable costs.
FAC accepted this audit on June 20, 2025 — management decision was due December 20, 2025.
Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Health and Human Services Program Titles: Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing Number: 93.566 Award Number: 2134-30265 Award Period: October 1, 2021 - September 30, 2025 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, costs must be accounted for in accordance with generally accepted accounting principles (GAAP) and be given consistent treatment. SOWA’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During the testing of allowable costs, there were two instances where subscription costs were not accounted for in accordance with GAAP. Subscription costs should be expensed over the performance period versus when paid. Questioned Costs $989 Cause SOWA’s operation of internal controls was not sufficient to ensure that subscription costs charged to federal awards were in accordance with GAAP. Effect Based on the exception noted in the operation of internal controls, unallowable costs could be charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that SOWA ensures current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Show full finding ▾Hide full finding ▴Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Health and Human Services Program Titles: Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing Number: 93.566 Award Number: 2134-30265 Award Period: October 1, 2021 - September 30, 2025 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, costs must be accounted for in accordance with generally accepted accounting principles (GAAP) and be given consistent treatment. SOWA’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During the testing of allowable costs, there were two instances where subscription costs were not accounted for in accordance with GAAP. Subscription costs should be expensed over the performance period versus when paid. Questioned Costs $989 Cause SOWA’s operation of internal controls was not sufficient to ensure that subscription costs charged to federal awards were in accordance with GAAP. Effect Based on the exception noted in the operation of internal controls, unallowable costs could be charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that SOWA ensures current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Create a policy that clearly specifies that subscription and other costs related to federally funded programs which are invoiced on an annual basis are expensed on an accrual basis rather than as period expenses. Policy will also include procedures to assure that for federally funded programs the recognition of expenses aligns with the performance period of the federal contracts. Implement new policy effective immediately. Revise treatment of all bills invoiced on an annual basis received in 2025 to comply with new policy. Make adjusting journal entries as needed to assure that any expenses related to annual invoices do not result in charges to federally funded programs beyond the performance period. Anticipated completion date: 6/30/25 School’s Out Washington considers the above steps sufficient and adequate to close the gaps in the coding of transactions that may have permitted unallowable costs to post to grants for YE2024. These steps will remedy the lapse in effectiveness experienced by School’s Out Washington’s internal controls over allowable costs.
FAC accepted this audit on July 15, 2024 — management decision was due January 15, 2025.
FAC accepted this audit on June 27, 2023 — management decision was due December 27, 2023.
FAC accepted this audit on June 10, 2021 — management decision was due December 10, 2021.
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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