EIN: 751992728
UEI: M9MNFQMF7YU3
Audited by: Sutton Frost Cary, LLP
Oversight agency: 21 [Department of the Treasury]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on April 30, 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 October 30, 2026 (59 days from today).
What is a management decision? →During payroll cost testing for federal grants, for 4 of the 40 payroll transactions tested, the pay rate charged to the grant did not agree to the approved pay rate. Cause: The Organization charges payroll to the grant using a standardized budgeted hourly rate rather than actual payroll and differences were not reconciled and corrected prior to the request for reimbursement submission. Effect: The Organization undercharged the grant by $87.44. Questioned Costs: None Recommendation: In order to comply with the Uniform Guidance federal regulations, we recommend a cost allocation methodology be updated so that amounts charged to the grant are aligned with grant expenditures. Management’s Response: See corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2025-001: Allowable costs and activities – material weakness in internal controls over compliance and compliance finding. Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 Criteria: The Organization’s internal control procedures over compliance specify that all payroll allocations are reviewed by the CFO prior to being submitted for reimbursement. Additionally, the Code of Federal Regulations stipulates that all costs charged to the grant are adequately documented. Condition: During payroll cost testing for federal grants, for 4 of the 40 payroll transactions tested, the pay rate charged to the grant did not agree to the approved pay rate. Cause: The Organization charges payroll to the grant using a standardized budgeted hourly rate rather than actual payroll and differences were not reconciled and corrected prior to the request for reimbursement submission. Effect: The Organization undercharged the grant by $87.44. Questioned Costs: None Recommendation: In order to comply with the Uniform Guidance federal regulations, we recommend a cost allocation methodology be updated so that amounts charged to the grant are aligned with grant expenditures. Management’s Response: See corrective action plan.
Finding 2025-001: Allowable Costs and Activities – Material Weakness in Internal Controls over Compliance Management Response: Management acknowledges the finding and agrees that improvements are required in internal controls over compliance related to allowable costs and activities. This condition arose during a period of organizational transition and increased complexity in funding sources and compliance requirements, which impacted consistency in control execution. Under the direction of the CFO, the organization is implementing the following corrective actions for the upcoming fiscal year: • Strengthening review and approval processes over grant expenditures and payroll allocations • Implementing formal, documented monthly reconciliations for all grant-related accounts • Establishing secondary review controls between the Controller and Accounting Clerk to ensure accuracy and compliance • Providing targeted training under the direction of the CFO for staff involved in financial reporting and grant compliance • Enhancing documentation standards to ensure all control activities are properly evidenced and audit-ready The organization has also reinforced financial leadership capacity to ensure appropriate oversight, adherence to GAAP, and alignment with federal compliance requirements. Responsible party: Brenda Colon, CFO Expected Completion Date: October 2026.
During payroll cost testing for federal grants, for 1 of the 40 payroll transactions tested, the allocation of the pay was incorrectly calculated. Cause: Allocation error was not caught during the review process. Effect: The Organization overcharge the grant by $14.85. Questioned Costs: None Recommendation: In order to comply with the Uniform Guidance federal regulations, we recommend a cost allocation methodology be updated so that amounts charged to the grant are aligned with grant expenditures. Management’s Response: See corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2025-002: Allowable costs and activities – material weakness in internal controls over compliance and compliance finding. Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 Criteria: Payroll allocations should match timesheet records. The Organization’s internal control procedures over compliance specify that all employees timesheets and hours agree to the payroll register and amount allocated to the grant activities to be compliant with the Code of Federal Regulations. Condition: During payroll cost testing for federal grants, for 1 of the 40 payroll transactions tested, the allocation of the pay was incorrectly calculated. Cause: Allocation error was not caught during the review process. Effect: The Organization overcharge the grant by $14.85. Questioned Costs: None Recommendation: In order to comply with the Uniform Guidance federal regulations, we recommend a cost allocation methodology be updated so that amounts charged to the grant are aligned with grant expenditures. Management’s Response: See corrective action plan.
Finding 2025-002: Allowable Costs and Activities – Material Weakness in Internal Controls over Compliance Management Response: Management acknowledges the finding and agrees that improvements are necessary in the design and execution of internal controls related to allowable costs and activities for federal programs. The audit identified inconsistencies in how grant expenditures were reviewed, approved, and supported, as well as gaps in ensuring costs charged to grants were fully aligned with applicable requirements. This condition arose during a period of organizational transition, including changes in financial leadership, combined with increased volume and complexity of federal funding. These factors contributed to inconsistencies in control execution, documentation, and oversight. To address this finding, management is implementing the following corrective actions: • Enhancing policies and procedures governing allowable costs to ensure alignment with federal grant requirements • Strengthening pre- and post-expenditure review processes to verify that all costs charged to grants are allowable, properly supported, and accurately recorded • Implementing formal, documented reconciliation procedures for grant expenditures on a monthly basis • Establishing secondary review controls involving both the Controller and CFO to ensure compliance and accuracy • Providing targeted training to program and finance staff on allowable cost principles and grant compliance requirements • Improving documentation standards to ensure all approvals and supporting evidence are complete and audit-ready. Responsible party: Brenda Colon, CFO Expected Completion Date: October 2026.
During testing of the SEFA, the Organization had posted grant revenues and expenditures to incorrect funds, matching funds were erroneously included, and entries relating to grant cut off were required in order to reconcile the SEFA to the financial statements. Cause: Federal revenue and expense accounts were not reviewed monthly, many reconciliations and adjustments were not done as part of year end close resulting in material audit entries and material changes to the SEFA. Effect: The Organization’s audit experienced significant delays for completion. Questioned Costs: None Recommendation: The Organization should implement controls to ensure grant expenditures are regularly reconciled to the financial statements. Management’s Response: See corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2025-003: Preparation of the schedule of federal expenditures (SEFA) – material weakness in internal controls over reporting. Criteria: A SEFA should be prepared with support for Assistance Listing Numbers, pass through organizations and grant funds reconciled to the financial statements. Condition: During testing of the SEFA, the Organization had posted grant revenues and expenditures to incorrect funds, matching funds were erroneously included, and entries relating to grant cut off were required in order to reconcile the SEFA to the financial statements. Cause: Federal revenue and expense accounts were not reviewed monthly, many reconciliations and adjustments were not done as part of year end close resulting in material audit entries and material changes to the SEFA. Effect: The Organization’s audit experienced significant delays for completion. Questioned Costs: None Recommendation: The Organization should implement controls to ensure grant expenditures are regularly reconciled to the financial statements. Management’s Response: See corrective action plan.
Finding 2025-003: Preparation of the schedule of federal expenditures (SEFA) – material weakness in internal controls over reporting. Management Response: Management acknowledges the finding and agrees that improvements are needed in the preparation and review of the Schedule of Expenditures of Federal Awards (SEFA). The audit identified that controls over the accuracy, completeness, and reconciliation of the SEFA to the general ledger and financial statements were not consistently performed or documented. This condition developed during a period of organizational transition, including changes in financial leadership, as well as increased complexity in federal funding and reporting requirements. These factors contributed to gaps in oversight and consistency in the SEFA preparation process. To address this finding, management is implementing the following corrective actions: • Establishing a formal, documented SEFA preparation process, including standardized templates and procedures • Implementing quarterly and year-end reconciliation processes to ensure grant activity is accurately recorded and aligned with the general ledger • Strengthening review controls, including secondary review by the Controller and CFO prior to finalization Enhancing grant tracking mechanisms to ensure expenditures, revenues, and matching requirements are properly classified • Providing targeted training to staff responsible for grant accounting and SEFA preparation Responsible party: Brenda Colon, CFO Expected Completion Date: October 2026
FAC accepted this audit on December 20, 2024 — management decision was due June 20, 2025.
FAC accepted this audit on December 20, 2023 — management decision was due June 20, 2024.
FAC accepted this audit on January 24, 2023 — management decision was due July 24, 2023.
FAC accepted this audit on December 20, 2021 — management decision was due June 20, 2022.
FAC accepted this audit on December 20, 2020 — management decision was due June 20, 2021.
a. CONDITION: We noted lack of document retention for one $159 expenditure charged to grants for 2020 (out of forty tested). b. CRITERIA: Supporting documentation was not easily accessible and alternative procedures had to be performed for the auditors to gain comfort over this expenditure. c. CAUSE OF CONDITION: The new staff was unable to locate the proper or correct files after the turnover of the accounting department during the current fiscal year. d. POTENTIAL EFFECT OF CONDITION: Potential rejection of future federal and state award funding for not meeting supporting reported expenditures. e. RECOMMENDATION: Create and follow a document retention policy for electronic and hard copies of all expenditures related to grants. f. CLIENT RESPONSE: Due to the 100% turnover of accounting staff documents became difficult to find. Prior and interim staff did not leave a consistent audit trail. The accounts payable procedures have been reviewed and updated to ensure proper compliance with record keeping and document retention. The procedures have been distributed to all accounting personnel and discussed at our weekly department meeting so all questions could be addressed. g. AUDITOR EVALUATION: Current staff is already has already begun updating policies and procedures; including one on document retention. The response will address the condition once the policies are completed and implemented
Show full finding ▾Hide full finding ▴a. CONDITION: We noted lack of document retention for one $159 expenditure charged to grants for 2020 (out of forty tested). b. CRITERIA: Supporting documentation was not easily accessible and alternative procedures had to be performed for the auditors to gain comfort over this expenditure. c. CAUSE OF CONDITION: The new staff was unable to locate the proper or correct files after the turnover of the accounting department during the current fiscal year. d. POTENTIAL EFFECT OF CONDITION: Potential rejection of future federal and state award funding for not meeting supporting reported expenditures. e. RECOMMENDATION: Create and follow a document retention policy for electronic and hard copies of all expenditures related to grants. f. CLIENT RESPONSE: Due to the 100% turnover of accounting staff documents became difficult to find. Prior and interim staff did not leave a consistent audit trail. The accounts payable procedures have been reviewed and updated to ensure proper compliance with record keeping and document retention. The procedures have been distributed to all accounting personnel and discussed at our weekly department meeting so all questions could be addressed. g. AUDITOR EVALUATION: Current staff is already has already begun updating policies and procedures; including one on document retention. The response will address the condition once the policies are completed and implemented
Planned corrective action: Due to the 100% turnover of accounting staff documents became difficult to find. Prior and interim staff did not leave a consistent audit trail. The accounts payable procedures have been reviewed and updated to ensure proper compliance with record keeping and document retention. The procedures have been distributed to all accounting personnel and discussed at our weekly department meeting so all questions could be addressed.
FAC accepted this audit on January 5, 2020 — management decision was due July 5, 2020.
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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