SIGNIFICANT WEAKNESS 2022 ? 001 Financial Statements Criteria: The Organization?s financial statements showed a combined negative net assets in several funds during the year ended June 30, 2022 (Repeat finding). Condition: The Organization?s financial statements showed a combined negative net assets of ($891,761) in several funds during the year ended June 30, 2022. While this figure represents a reduction in the combined negative net assets from the prior fiscal year, this represents a continuing financial weakness in the Organization, though the Organization does appear to have stabilized and begun to reverse the negative net assets. The Organization also has experienced diminishment of fundings in the past decade, primarily due to reductions in federal funding to both the Organization and certain of its public agency funders. Effect: The resulting cash flow situation has led in prior years to staff layoffs, furloughs, and other cost-cutting measures. Cause: There are a limited number of personnel for certain functions and deficiency in internal control systems. Recommendation: There is a need for more Board oversight in providing short and long-term vision for the agency in seeking additional sources of governmental and non-governmental support.
Finding 2022-002: Delayed Reporting of Year-End Financial Information Criteria: Nonprofit organizations expending more than $750,000 in federal awards during a fiscal year are required to have a Single Audit and to submit a Data Collection Form to the Federal Audit Clearinghouse, along with the audited financial statements, by the earlier of 30 calendar days after receipt of the auditors' reports or nine months after the end of the audit period. Condition: The Organization's audit for the year ended June 30, 2022, was not submitted March 31, 2023, the latest date for the Organization to submit a timely Data Collection Form and audited financial statements to the Federal Audit Clearinghouse. Effect: The Organization's funding from federal and/or state agencies may be delayed as a result of the late submission. Cause: The Finance Director's position was vacant for most of the June 30, 2022 audit preparation period, it subsequently contracted with an outside CPA to assist with its audit preparation, and also, hired a new fiscal finance director to facilitate prompt financial reporting, and audit completion. Recommendation: We recommend that management continue its commitment of additional resources and staffing, to ensure prompt financial reporting to Board and grantors in a timely manner. . Views of Responsible Officials: Management agrees with this finding. See corrective action plan page for management?s response.
SIGNIFICANT WEAKNESS 2022 ? 001 Financial Statements Criteria: The Organization?s financial statements showed a combined negative net assets in several funds during the year ended June 30, 2022 (Repeat finding). Condition: The Organization?s financial statements showed a combined negative net assets of ($891,761) in several funds during the year ended June 30, 2022. While this figure represents a reduction in the combined negative net assets from the prior fiscal year, this represents a continuing financial weakness in the Organization, though the Organization does appear to have stabilized and begun to reverse the negative net assets. The Organization also has experienced diminishment of fundings in the past decade, primarily due to reductions in federal funding to both the Organization and certain of its public agency funders. Effect: The resulting cash flow situation has led in prior years to staff layoffs, furloughs, and other cost-cutting measures. Cause: There are a limited number of personnel for certain functions and deficiency in internal control systems. Recommendation: There is a need for more Board oversight in providing short and long-term vision for the agency in seeking additional sources of governmental and non-governmental support.
Finding 2022-002: Delayed Reporting of Year-End Financial Information Criteria: Nonprofit organizations expending more than $750,000 in federal awards during a fiscal year are required to have a Single Audit and to submit a Data Collection Form to the Federal Audit Clearinghouse, along with the audited financial statements, by the earlier of 30 calendar days after receipt of the auditors' reports or nine months after the end of the audit period. Condition: The Organization's audit for the year ended June 30, 2022, was not submitted March 31, 2023, the latest date for the Organization to submit a timely Data Collection Form and audited financial statements to the Federal Audit Clearinghouse. Effect: The Organization's funding from federal and/or state agencies may be delayed as a result of the late submission. Cause: The Finance Director's position was vacant for most of the June 30, 2022 audit preparation period, it subsequently contracted with an outside CPA to assist with its audit preparation, and also, hired a new fiscal finance director to facilitate prompt financial reporting, and audit completion. Recommendation: We recommend that management continue its commitment of additional resources and staffing, to ensure prompt financial reporting to Board and grantors in a timely manner. . Views of Responsible Officials: Management agrees with this finding. See corrective action plan page for management?s response.