EIN: 680062345
UEI: GSA_MIGRATION
Audited by: SKOWRON & BUNNING LLP
Oversight agency: 93 [Department of Health and Human Services]
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Data as of September 7, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 31, 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 October 1, 2022 (1440 days ago).
What is a management decision? →FAC accepted this audit on November 4, 2021 — management decision was due May 4, 2022.
The Organization?s chart of accounts is unnecessarily complex and is unable to provide financial statements that are in accordance with generally accepted accounting principles, without significant and material adjustments made in the course of the audit, as well as accounting of revenues and expenses for individual federal programs, without the use of significant calculations, outside the accounting software.
Show full finding ▾Hide full finding ▴The Organization?s chart of accounts is unnecessarily complex and is unable to provide financial statements that are in accordance with generally accepted accounting principles, without significant and material adjustments made in the course of the audit, as well as accounting of revenues and expenses for individual federal programs, without the use of significant calculations, outside the accounting software.
After completion of the previous year?s audit, the Organization restructured the accounting department, including but not limited to, releasing underperforming staff, relocating accounting operations to the main office with direct Executive Director oversight, and consulting with accounting professionals. In addition, the Organization hired an experienced Financial Director with experience with GAAP, governmental grants and non-profit accounting, and redesigned and began implementation of revised accounting policies and procedures.
2019-001
In our testing of cash disbursements, we noted that the Organization did not maintain proper controls over cash disbursements and credit card transactions. The Organization follows the practice of using signature stamps for both signatures on cash disbursements, and disbursements to vendors and employees do not have sufficient documentation before payment is made.
Show full finding ▾Hide full finding ▴In our testing of cash disbursements, we noted that the Organization did not maintain proper controls over cash disbursements and credit card transactions. The Organization follows the practice of using signature stamps for both signatures on cash disbursements, and disbursements to vendors and employees do not have sufficient documentation before payment is made.
After completion of the previous year?s audit, the Organization redesigned and began implementation of revised accounting policies and procedures, with an emphasis on segregation of duties and internal controls.
2019-002
We noted in our audit fieldwork that there appears to have been a failure in leadership at the Management and Board of Directors level. This has contributed to a environment which allowed for the apparent misappropriation of assets, and other deficiencies in complying with state and federal requirements, as reported in this audit report.
Show full finding ▾Hide full finding ▴We noted in our audit fieldwork that there appears to have been a failure in leadership at the Management and Board of Directors level. This has contributed to a environment which allowed for the apparent misappropriation of assets, and other deficiencies in complying with state and federal requirements, as reported in this audit report.
The Organization released underperforming staff, consulted with accounting professionals and hired a Financial Director with experience in GAAP, governmental grants and non-profit accounting. The Organization has also relocated the accounting operations to the main office with direct Executive Director oversight. The Organization is also increasing board involvement, seeking additional experienced members, and will be implementing policies for continuing education related to GAAP and Single Audit accounting.
2019-004
In our testing of revenue, and payments to foster parents we noted that the Organization lacks procedures for reviewing and reconciling the monthly billing for services it performs, as well as the monthly payments to foster care parents.
Show full finding ▾Hide full finding ▴In our testing of revenue, and payments to foster parents we noted that the Organization lacks procedures for reviewing and reconciling the monthly billing for services it performs, as well as the monthly payments to foster care parents.
The Organization developed and is in the process of implementing new policies, procedures, and internal controls for all aspects of accounting, including the foster care payment and billing process. The processes emphasize the involvement of both financial and non-financial personnel and the segregation of duties.
2019-003
FAC accepted this audit on February 17, 2020 — management decision was due August 17, 2020.
The Organization?s chart of accounts is unnecessarily complex and is unable to provide the following: Financial statements that are in accordance with generally accepted accounting principles, without significant and material adjustments made in the course of the audit. Accounting of revenues and expenses for individual federal programs, without the use of significant calculations, outside the accounting software.
Show full finding ▾Hide full finding ▴The Organization?s chart of accounts is unnecessarily complex and is unable to provide the following: Financial statements that are in accordance with generally accepted accounting principles, without significant and material adjustments made in the course of the audit. Accounting of revenues and expenses for individual federal programs, without the use of significant calculations, outside the accounting software.
The Executive Director and Finance Manager will be taking steps to improve the current accounting system, and segregation of duties to address these weaknesses.
2018-001
In our testing of cash disbursements we noted that the Organization did not maintain proper controls over cash disbursements, payroll, and credit card transactions. The Organization follows the practice of using signature stamps for both signatures on cash disbursements, and disbursements to vendors and employees are not sufficiently documented. Payroll transactions during the year included bonuses paid, as well as payroll advances, without Executive Director, or Board approval. Overall, there was insufficient documentation regarding the rate of pay for employees, and the rates of withholding for benefits.
Show full finding ▾Hide full finding ▴In our testing of cash disbursements we noted that the Organization did not maintain proper controls over cash disbursements, payroll, and credit card transactions. The Organization follows the practice of using signature stamps for both signatures on cash disbursements, and disbursements to vendors and employees are not sufficiently documented. Payroll transactions during the year included bonuses paid, as well as payroll advances, without Executive Director, or Board approval. Overall, there was insufficient documentation regarding the rate of pay for employees, and the rates of withholding for benefits.
Upon discovery of the misappropriation of funds, the Organization immediately terminated employees suspected to be involved, consulted its attorney, and is currently working on implementing control processes that are more effective. This includes the transfer of the main office to a location near the Executive Director in order to maintain sufficient oversight.
2018-001
In our testing of revenue, and payments to foster parents we noted that the Organization lacks procedures for reviewing and reconciling the monthly billing for services it performs, as well as the monthly payments to foster care parents.
Show full finding ▾Hide full finding ▴In our testing of revenue, and payments to foster parents we noted that the Organization lacks procedures for reviewing and reconciling the monthly billing for services it performs, as well as the monthly payments to foster care parents.
The Organization will be developing and implementing a new procedures to ensure the foster care parent payment process, and the billing process for services is completed accurately and properly reviewed.
We noted in our audit fieldwork that there appears to have been a failure in leadership at the Management and Board of Directors level. This has contributed to a environment which allowed for the apparent misappropriation of assets, and other deficiencies in complying with state and federal requirements, as reported in this audit report.
Show full finding ▾Hide full finding ▴We noted in our audit fieldwork that there appears to have been a failure in leadership at the Management and Board of Directors level. This has contributed to a environment which allowed for the apparent misappropriation of assets, and other deficiencies in complying with state and federal requirements, as reported in this audit report.
The Organization will be combining the Finance office and the executive office at one location. We will also be reevaluating the working relationship and reporting lines & responsibilities between the Board, Executive Director, the Finance office & other managers.
Payroll charges for salaried employees were not supported by time and attendance records and salary distribution reports.
Show full finding ▾Hide full finding ▴Payroll charges for salaried employees were not supported by time and attendance records and salary distribution reports.
Mountain Circle Family Services will be receiving training on the new Uniform Guidance Requirements, and then designing the correct documentation to comply with this requirement.
Even though the Board of Directors approved, the Organization cannot use federal money for rental of residential property for purposes such as a home office from anyone affiliated with the Organization. Additionally, even though the Board of Directors approved, the federal regulations prohibit the use of federal money for fringe benefits, such as repayment of student loans, without prior approval. We were unable to determine that there was prior approval from the pass-through grantor for these expenses provided as a fringe benefit to the Executive Director. The Board of Directors may use federal monies to pay bonuses, but must first establish and approve a reasonable, measurable plan prior to the issuance of any bonuses.
Show full finding ▾Hide full finding ▴Even though the Board of Directors approved, the Organization cannot use federal money for rental of residential property for purposes such as a home office from anyone affiliated with the Organization. Additionally, even though the Board of Directors approved, the federal regulations prohibit the use of federal money for fringe benefits, such as repayment of student loans, without prior approval. We were unable to determine that there was prior approval from the pass-through grantor for these expenses provided as a fringe benefit to the Executive Director. The Board of Directors may use federal monies to pay bonuses, but must first establish and approve a reasonable, measurable plan prior to the issuance of any bonuses.
Mountain Circle Family Services will be receiving training on the new Uniform Guidance Requirements, and then designing the Executive Director?s compensation accordingly.
FAC accepted this audit on July 17, 2018 — management decision was due January 17, 2019.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on May 7, 2017 — management decision was due November 7, 2017.
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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