Texas · Nonprofit · under $2M in federal spending
Temple, TX
The FY2024 single audit reports 5 findings: 2 material weaknesses, 3 significant deficiencies, 2 repeat. Audits on file for FY2023–FY2025: FY2023, FY2024.
The sum of eight parts, each read from the audit. How the score works.
| Part | Rule | Points | Max |
|---|---|---|---|
| Material weaknesses | 8 points each | 16 | 24 |
| Significant deficiencies | 3 points each | 9 | 9 |
| Repeat findings | 5 points each | 10 | 15 |
| Longest repeat chain | 2 years 3, 3 years 6, 4 years 9, 5+ years 12 | 6 | 12 |
| Modified major-program opinions | qualified 8 each; any adverse or disclaimer 15 | 0 | 15 |
| Questioned costs | known amount of $25,000 or more, by share and dollars | 0 | 15 |
| Going concern | auditor included a going-concern paragraph | 0 | 5 |
| Prior-year lateness | prior-year audit late or not filed, scored only with a finding | 5 | 5 |
| Score | 46 | 100 |
$1,386,340 in federal awards spent, across 2 programs. Largest funding agencies:
| Agency | Spent |
|---|---|
| Department of Health and Human Services | $1,386,340 |
material weaknessrepeat findingother matters
The Organization 's policies and procedures were not followed in the accounting for expenditures process.
material weaknessrepeat findingother matters
The Organization's policies and procedures were not followed in the accounting/or revenue recognition and accounts receivable processes.
significant deficiencyother matters
The Organization's policies and procedures were not followed in the accounting for payroll payments to the Internal Revenue Service.
significant deficiencyother matters
The Organization's policies and procedures were not followed in the accounting for percentage allocation support.
significant deficiencyother matters
The Organization's policies and procedures were not followed in the accounting for revenue classification.
significant deficiencyrepeat finding
Section 2 – Financial Statement Findings
Finding 2023-01: The Organization’s policies and procedures were not followed in the accounting for expenditures process.
Criteria: The Organization’s policies and procedures require vendor invoices to be retained in vendor files after payment has been made.
Condition: For the year ended December 31, 2023, thirty-five of the forty-one invoices from the disbursement testing sample and twenty-two of the twenty-five from compliance and control testing sample were unable to be located.
Cause: The Organization has noticed that there is an increasing number of invoices that are being sent to an old email address that no one has access to. Additionally, the Organization stated that they did not follow through well with their planned updates to their control policy due to increases in their day-to-day work.
Effect or Potential Effect: Duplicate payments could be made to vendors and expenditures could be charged to programs that are not allowable.
significant deficiency
Finding 2023-02: The Organization’s policies and procedures were not followed in the accounting for payroll payments to the Internal Revenue Service.
Criteria: The Organization’s policies and procedures require regular payments be made to the Internal Revenue Services for expenses related to payroll taxes.
Condition: For the year ended December 31, 2023, there were no payments disbursed to the Internal Revenue Service after June 26, 2023.
Cause: The Organization has noticed that there is an increasing number of invoices that are being sent to an old email address that no one has access to. Additionally, the Organization stated that they did not follow through well with their planned updates to their control policy due to increases in their day-to-day work.
Effect or Potential Effect: This is increasing the liability for the Company, and there will be significant penalties and interest related to the outstanding balances that are likely to be material to the financial statements in the current audit period and future audit periods.