Audit 34957

Finding 2022-002 ? Significant Deficiency Assistance Listing: 93.591, Family Violence Prevention and Services/State Domestic Violence Coalitions Federal Grantor: U.S. Department of Health and Human Services Compliance Requirement: Other Condition: The Partnership submitted its audited financial statements and single audit report to the federal clearinghouse in August 2023, more than 4 months after it was due. Criteria: The Partnership was required to submit its June 30, 2022 audited financial statements and single audit reporting package to the federal audit clearinghouse no later than March 31, 2023, 9 months after the fiscal year-end (2 Code of Federal Regulations ?200.512(a)). Effect: Federal awarding agencies may deny the Partnership future federal awards or subject the Partnership to additional monitoring requirements. Cause: The Partnership was not able to complete its single audit by the reporting deadline due to staff turnover and a reorganization that was in progress shortly after year-end when the Partnership normally completes its financial statement audit and single audit. Recommendation: The Partnership should work with its external accounting firm so that it can submit its audited financial statements and single audit to the federal audit clearinghouse no later than the statutory reporting deadline. Management?s Response: Management?s response to the finding is discussed in the attached Corrective Action Plan.

Finding 2022-003 ? Significant Deficiency Assistance Listing: 93.591, Family Violence Prevention and Services/State Domestic Violence Coalitions Federal Grantor: U.S. Department of Health and Human Services Compliance Requirement: Other Condition: Expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.510(b) states, ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with ?200.502 Basis for determining Federal awards expended.? Internal controls over the SEFA should be in place to ensure accrual basis expenses incurred under federal programs are appropriately reported as expenses on the SEFA and are appropriately reported as revenue in the financial statements prior to the single audit. Cause: The Partnership failed to prepare its Audited Financial Statements and SEFA in a timely manner due to the loss of its key accounting staff near the single audit deadline and the time it took to hire a contract accounting firm to prepare for the financial statement and single audit. Also, some expenses reported on the SEFA was not reported in the general ledger grouping for ?funders? used to separate revenues and expenses for the federal grants and were instead reported in the grouping used for unallocated operating expenses. Effect: Adjustments were needed to properly report expenses on the SEFA and make the expenses agree to federal revenues in the financial statements. If expenses are not properly reported on the SEFA prior to the start of the single audit, the auditor could omit expenses for testing or select the wrong program for testing as a major program during the single audit, which would result in the Partnership?s single audit not complying with audit standards. Recommendation: The Partnership should work with its external accounting firm to ensure the SEFA is complete and accurate and expenses agree to federal revenues reported and ensure revenues and expenses for each federal grant are included in the appropriate grouping code for the grant so revenues and expenses claimed are accounted for separately in the general ledger. Management?s Response: Management?s response to the finding is discussed in the attached Corrective Action Plan.

Finding 2022-004 ? Significant Deficiency Assistance Listing: 93.591, Family Violence Prevention and Services/State Domestic Violence Coalitions Federal Grantor: U.S. Department of Health and Human Services Compliance Requirement: Reporting Condition: The Partnership did not submit its annual performance progress reports (PPR) and Federal Financial Reports (SF-425) for the years ended September 30, 2021 as of the required due date of 90 days after the September 30 year-end for three of the four individual grants sampled under the program. Criteria: 42 U.S.C ?10411(g) requires that award recipients submit annual (PPR) and SF-425 reports to the Department of Health and Human Services within 90 days following the end of each year ending September 30. Cause: The reports were filed after the required due date due to the loss of its key accounting staff during the fiscal year and the need to train new staff to prepare the reports. Effect: The Partnership could jeopardize federal funding due to non-compliance. Recommendation: The Partnership should strengthen its internal control procedures over reporting to ensure that all required reports are prepared and submitted in a timely manner. Multiple staff should be trained to prepare the reports in case of staff turnover or other circumstances. A summary of required reports and required due dates should be prepared using the terms and conditions of each grant to facilitate this process. The Schedule of Expenditures of Federal Awards schedule provided during the audit could be updated to include this information since it already includes program names, funder numbers used in the GL, period of performance and other information for each grant that would be useful to prepare the reports. Management?s Response: Management?s response to the finding is discussed in the attached Corrective Action Plan.

Finding 2022-002 ? Significant Deficiency Assistance Listing: 93.591, Family Violence Prevention and Services/State Domestic Violence Coalitions Federal Grantor: U.S. Department of Health and Human Services Compliance Requirement: Other Condition: The Partnership submitted its audited financial statements and single audit report to the federal clearinghouse in August 2023, more than 4 months after it was due. Criteria: The Partnership was required to submit its June 30, 2022 audited financial statements and single audit reporting package to the federal audit clearinghouse no later than March 31, 2023, 9 months after the fiscal year-end (2 Code of Federal Regulations ?200.512(a)). Effect: Federal awarding agencies may deny the Partnership future federal awards or subject the Partnership to additional monitoring requirements. Cause: The Partnership was not able to complete its single audit by the reporting deadline due to staff turnover and a reorganization that was in progress shortly after year-end when the Partnership normally completes its financial statement audit and single audit. Recommendation: The Partnership should work with its external accounting firm so that it can submit its audited financial statements and single audit to the federal audit clearinghouse no later than the statutory reporting deadline. Management?s Response: Management?s response to the finding is discussed in the attached Corrective Action Plan.

Finding 2022-003 ? Significant Deficiency Assistance Listing: 93.591, Family Violence Prevention and Services/State Domestic Violence Coalitions Federal Grantor: U.S. Department of Health and Human Services Compliance Requirement: Other Condition: Expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.510(b) states, ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with ?200.502 Basis for determining Federal awards expended.? Internal controls over the SEFA should be in place to ensure accrual basis expenses incurred under federal programs are appropriately reported as expenses on the SEFA and are appropriately reported as revenue in the financial statements prior to the single audit. Cause: The Partnership failed to prepare its Audited Financial Statements and SEFA in a timely manner due to the loss of its key accounting staff near the single audit deadline and the time it took to hire a contract accounting firm to prepare for the financial statement and single audit. Also, some expenses reported on the SEFA was not reported in the general ledger grouping for ?funders? used to separate revenues and expenses for the federal grants and were instead reported in the grouping used for unallocated operating expenses. Effect: Adjustments were needed to properly report expenses on the SEFA and make the expenses agree to federal revenues in the financial statements. If expenses are not properly reported on the SEFA prior to the start of the single audit, the auditor could omit expenses for testing or select the wrong program for testing as a major program during the single audit, which would result in the Partnership?s single audit not complying with audit standards. Recommendation: The Partnership should work with its external accounting firm to ensure the SEFA is complete and accurate and expenses agree to federal revenues reported and ensure revenues and expenses for each federal grant are included in the appropriate grouping code for the grant so revenues and expenses claimed are accounted for separately in the general ledger. Management?s Response: Management?s response to the finding is discussed in the attached Corrective Action Plan.

Finding 2022-004 ? Significant Deficiency Assistance Listing: 93.591, Family Violence Prevention and Services/State Domestic Violence Coalitions Federal Grantor: U.S. Department of Health and Human Services Compliance Requirement: Reporting Condition: The Partnership did not submit its annual performance progress reports (PPR) and Federal Financial Reports (SF-425) for the years ended September 30, 2021 as of the required due date of 90 days after the September 30 year-end for three of the four individual grants sampled under the program. Criteria: 42 U.S.C ?10411(g) requires that award recipients submit annual (PPR) and SF-425 reports to the Department of Health and Human Services within 90 days following the end of each year ending September 30. Cause: The reports were filed after the required due date due to the loss of its key accounting staff during the fiscal year and the need to train new staff to prepare the reports. Effect: The Partnership could jeopardize federal funding due to non-compliance. Recommendation: The Partnership should strengthen its internal control procedures over reporting to ensure that all required reports are prepared and submitted in a timely manner. Multiple staff should be trained to prepare the reports in case of staff turnover or other circumstances. A summary of required reports and required due dates should be prepared using the terms and conditions of each grant to facilitate this process. The Schedule of Expenditures of Federal Awards schedule provided during the audit could be updated to include this information since it already includes program names, funder numbers used in the GL, period of performance and other information for each grant that would be useful to prepare the reports. Management?s Response: Management?s response to the finding is discussed in the attached Corrective Action Plan.