Audit 337426

Criteria: The Organization is required to establish and maintain effective internal controls over financial documentation to ensure compliance with federal regulations, as outlined in 2 CFR 200.303 and 2 CFR 200.334 of the Uniform Guidance. These controls are crucial for the accurate management and reporting of federal funds. Statement of Condition: During our audit, it was identified that the Organization could not locate invoices or check stubs for five out of sixty items tested for non-payroll expenses within a major federal program. Cause: The existing internal control processes related to the organization and retrieval of financial documentation appear to be insufficient, a situation that was exacerbated by staffing shortages during the period under audit. Addressing these challenges through enhanced processes and adequate staffing could improve the Organization's ability to provide timely and complete documentation. Effect or Potential Effect: The inability to produce essential financial documentation may lead to compliance challenges with federal funding requirements. Additionally, this increases the risk of questioned costs, which could have financial implications for the Organization if not rectified. Recommendation: It is recommended that the Organization implement enhanced procedures for the systematic maintenance and retrieval of all financial records related to expenditures. This should include staff training on these protocols to ensure compliance and improve overall internal controls. Management’s Response: Management agrees with this finding. Please refer to the Corrective Action Plan for further details.

Criteria: Uniform Guidance 2 CFR 200.512(a) requires that an audit must be completed and the data collection form and reporting package submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Statement of Condition: The audit, data collection form, and reporting package for the Organization for the year ended June 30, 2022, were due for submission to the Federal Audit Clearinghouse by March 31, 2023. Additionally, the audit for the year ended June 30, 2023, has not yet commenced and was expected to be submitted by March 31, 2024. These delays have been compounded by staff turnover and vacant roles within the Organization, resulting in multiple years of outstanding submissions. Cause: The delay was due to staffing constraints and extended delays in the year-end close process at the Organization. Effect or Potential Effect: The failure to comply with Uniform Guidance requirements may result in noncompliance issues that could affect future funding and operational effectiveness. Recommendation: It is recommended that management implement procedures and controls to ensure that future audits are completed and submitted in a timely manner. Management’s Response: Management agrees with this finding. Please refer to the Corrective Action Plan for further details.

Criteria: The Organization is required to establish and maintain effective internal controls over financial documentation to ensure compliance with federal regulations, as outlined in 2 CFR 200.303 and 2 CFR 200.334 of the Uniform Guidance. These controls are crucial for the accurate management and reporting of federal funds. Statement of Condition: During our audit, it was identified that the Organization could not locate invoices or check stubs for five out of sixty items tested for non-payroll expenses within a major federal program. Cause: The existing internal control processes related to the organization and retrieval of financial documentation appear to be insufficient, a situation that was exacerbated by staffing shortages during the period under audit. Addressing these challenges through enhanced processes and adequate staffing could improve the Organization's ability to provide timely and complete documentation. Effect or Potential Effect: The inability to produce essential financial documentation may lead to compliance challenges with federal funding requirements. Additionally, this increases the risk of questioned costs, which could have financial implications for the Organization if not rectified. Recommendation: It is recommended that the Organization implement enhanced procedures for the systematic maintenance and retrieval of all financial records related to expenditures. This should include staff training on these protocols to ensure compliance and improve overall internal controls. Management’s Response: Management agrees with this finding. Please refer to the Corrective Action Plan for further details.

Criteria: Uniform Guidance 2 CFR 200.512(a) requires that an audit must be completed and the data collection form and reporting package submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Statement of Condition: The audit, data collection form, and reporting package for the Organization for the year ended June 30, 2022, were due for submission to the Federal Audit Clearinghouse by March 31, 2023. Additionally, the audit for the year ended June 30, 2023, has not yet commenced and was expected to be submitted by March 31, 2024. These delays have been compounded by staff turnover and vacant roles within the Organization, resulting in multiple years of outstanding submissions. Cause: The delay was due to staffing constraints and extended delays in the year-end close process at the Organization. Effect or Potential Effect: The failure to comply with Uniform Guidance requirements may result in noncompliance issues that could affect future funding and operational effectiveness. Recommendation: It is recommended that management implement procedures and controls to ensure that future audits are completed and submitted in a timely manner. Management’s Response: Management agrees with this finding. Please refer to the Corrective Action Plan for further details.