HIGHFIELDS, INC. ADDITIONAL REPORTS REQUIRED BY OMB CIRCULAR A-133 YEAR ENDED APRIL 30, 2011

Transcription

1 - HIGHFIELDS, INC. ADDITIONAL REPORTS REQUIRED BY OMB CIRCULAR A-133 YEAR ENDED APRIL 30, 2011 i

2 C O N T E N T S Page Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards Report on compliance with requirements that could have a direct and material effect on each major program and on internal control over compliance in accordance with OMB Circular A Schedule of expenditures of federal awards... 6 Notes to schedule of expenditures of federal awards... 7 Schedule of findings and questioned costs... 8 Schedule of prior year findings... 9 ii

3 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Highfields, Inc. We have audited the financial statements of Highfields, Inc. as of and for the year ended April 30, 2011, and have issued our report thereon dated August 8, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered Highfields, Inc. s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Organization s financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 1

4 Compliance and Other Matters As part of obtaining reasonable assurance about whether Highfields, Inc. s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the Board of Directors, management, federal awarding agencies and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. August 8,

5 REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 INDEPENDENT AUDITORS REPORT To the Board of Directors Highfields, Inc. Compliance We have audited Highfields, Inc. s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Highfields, Inc. s major federal programs for the year ended April 30, Highfields, Inc. s major federal programs are identified in the summary of auditors results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of Highfields, Inc. s management. Our responsibility is to express an opinion on Highfields, Inc. s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Highfields, Inc. s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Highfields, Inc. s compliance with those requirements. In our opinion, Highfields, Inc. complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended April 30,

6 Internal Control Over Compliance Management of Highfields, Inc. is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Highfields, Inc. s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Highfields, Inc. s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. 4

7 Schedule of Expenditures of Federal Awards We have audited the basic financial statements of Highfields, Inc. as of and for the year ended April 30, 2011, and have issued our report thereon dated August 8, Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of management, the Board of Directors, others within the entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. August 8,

8 HIGHFIELDS, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED APRIL 30, 2011 CFDA Award Federal Federal Agency/Pass-through Agency/Program Title Number Amount Expenditures U.S. Department of Agriculture: Passed through the Michigan Department of Education Child Nutrition Cluster: National School Breakfast Program - Cash Assistance $ 18,135 $ 18,135 National School Lunch Program - Cash Assistance ,660 33,660 National School Lunch Program - Non-Cash Assistance (Commodities) ,925 2,925 Total Child Nutrition Cluster 54,720 54,720 Child and Adult Care Food Program ,394 15,394 Total U.S Department of Agriculture $ 70,114 70,114 U.S. Department of Education: Passed through Michigan Department of Education: 21st Century Learning Centers $ 899, ,038 U.S. Department of Health and Human Services: Passed through the Michigan Department of Human Services Family Reunification: FTBS Branch County $ 21,309 20,726 FTBS Branch County ,354 15,229 FTBS Eaton/Barry County ,225 20,319 FTBS Hillsdale ,872 15,751 FTBS Ingham County ,162 7,800 Alternatives to Anger: CAN ,653 3,072 Parenting for Family Strengths: SFSC ,274 2,487 Total (Promoting Safe and Stable Families) 380,849 85,384 FR Calhoun , ,533 FR Calhoun , ,101 FR Jackson/Hillsdale , ,643 FR Jackson/Hillsdale , ,846 FTBS Branch County ,821 6,191 FTBS Branch County ,910 12,714 FTBS Eaton/Barry County , ,005 FTBS Gratiot County ,000 61,595 FTBS Ingham County ,605 48,477 Total (Temporary Assistance for Needy Families) 3,976, ,105 Total U.S. Department of Health and Human Services $ 4,357, ,489 Total federal awards $ 1,856,641 See accompanying notes to the schedule of expenditures of federal awards. 6

9 HIGHFIELDS, INC. NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS NOTES: 1. Basis of presentation - The accompanying schedule of expenditures of federal awards includes the grant activity of Highfields, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with OMB Circular A-133 and is included with the amounts presented in the preparation of the financial statements. 2. The value of the noncash assistance received was determined in accordance with the provisions of OMB Circular A-133. Commodities - Report commodities receipts values were computed using the receipt entitlement balance report and other records. 7

10 HIGHFIELDS, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED APRIL 30, 2011 Section I - Summary of Auditors' Results Financial Statements Type of auditors' report issued: Unqualified Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: Material weakness(es) identified: Yes X No Significant deficiency(ies) identified? Yes X None reported Type of auditors' report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? Unqualified Yes X No Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster Family Reunification st Century Dollar threshold used to distinguish between type A and type B programs: Auditee qualified as low-risk auditee? $300,000 Yes X No Section II - Financial Statement Findings No matters were reported for the year ended April 30, Section III - Federal Award Findings and Questioned Costs No findings or questioned costs were noted for the year ended April 30,

11 HIGHFIELDS, INC. SCHEDULE OF PRIOR YEAR FINDINGS YEAR ENDED APRIL 30, Federal Award Finding Finding Type - Noncompliance Criteria - Highfields, Inc. is required to maintain records within the client files of service provided to each client family through utilization of required forms. Condition - For certain case files, there were several instances where the required documentation was not completed within the time frame as outlined in the grant agreement. Context - Of the 35 case files sampled: Family Reunification (11 files tested): One file contained an intake assessment/isp that was completed beyond the 30 day requirement. One file contained a late updated service plan, which is required every 30 days and must be submitted within seven days. Two closing summary reports were completed later than the 10 day requirement. Family Together Building Solutions (20 files tested): Three files contained initial service plans that were completed beyond the 30 day requirement. One termination report was completed later than the 7 day requirement. Family Group Decision Making (4 files tested): No findings. Effect - In some cases, the Organization did not meet the documentation timelines. Cause - The Organization has continued to enhance and emphasis the monitoring systems that help ensure compliance with the documentation requirements. Recommendation - We recommend that the Organization continue to review the procedures in place to ensure all of the required documentation is completed timely as required and maintained in the case files in accordance with the grant document. Corrective Action Response - A number of systems have been put in place to address the timeliness of service documentation. Status - The Organization has implemented the plan of action that was previously established in order to resolve this issue. 9