Audit 355577

FY End
2023-12-31
Total Expended
$926,048
Findings
32
Programs
5
Year: 2023 Accepted: 2025-05-06

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
559681 2023-001 Material Weakness - ABCEHLM
559682 2023-002 Significant Deficiency - ABCEHLM
559683 2023-001 Material Weakness - ABCEHLM
559684 2023-002 Significant Deficiency - ABCEHLM
559685 2023-001 Material Weakness - ABCEHLM
559686 2023-002 Significant Deficiency - ABCEHLM
559687 2023-001 Material Weakness - ABCEHLM
559688 2023-002 Significant Deficiency - ABCEHLM
559689 2023-001 Material Weakness - ABCEHLM
559690 2023-002 Significant Deficiency - ABCEHLM
559691 2023-001 Material Weakness - ABCEHLM
559692 2023-002 Significant Deficiency - ABCEHLM
559693 2023-001 Material Weakness - ABCEHLM
559694 2023-002 Significant Deficiency - ABCEHLM
559695 2023-001 Material Weakness - ABCEHLM
559696 2023-002 Significant Deficiency - ABCEHLM
1136123 2023-001 Material Weakness - ABCEHLM
1136124 2023-002 Significant Deficiency - ABCEHLM
1136125 2023-001 Material Weakness - ABCEHLM
1136126 2023-002 Significant Deficiency - ABCEHLM
1136127 2023-001 Material Weakness - ABCEHLM
1136128 2023-002 Significant Deficiency - ABCEHLM
1136129 2023-001 Material Weakness - ABCEHLM
1136130 2023-002 Significant Deficiency - ABCEHLM
1136131 2023-001 Material Weakness - ABCEHLM
1136132 2023-002 Significant Deficiency - ABCEHLM
1136133 2023-001 Material Weakness - ABCEHLM
1136134 2023-002 Significant Deficiency - ABCEHLM
1136135 2023-001 Material Weakness - ABCEHLM
1136136 2023-002 Significant Deficiency - ABCEHLM
1136137 2023-001 Material Weakness - ABCEHLM
1136138 2023-002 Significant Deficiency - ABCEHLM

Contacts

Name Title Type
T7VFHY3LMP73 Huma Babak Ebadi Auditee
9702177493 Bennie Lewis Auditor
No contacts on file

Notes to SEFA

Title: Indirect Cost Rate Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Did not use De Minimus cost rate The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.
Criteria: Internal controls over financial reporting include the ability to timely reconcile general ledger accounts and produce accurate and timely financial statements in accordance with generally accepted accounting principles (GAAP) to ensure that useful information is available to management and those charged with governance. Condition: The internally generated trial balance provided for the audit did not include certain adjusting entries. Material audit adjustments were required to correct the balances in net assets with and without donor restrictions, grants receivable, deferred revenue, and revenues Effect: Without fully analyzing and accurately recording transactions, information provided to management or the board of directors may not be accurate. Recommendation: The Organization should evaluate its revenue recognition policy and update them to be in line with GAAP. Views of responsible officials and planned corrective actions: Management acknowledges that adjustments to deferred revenue, receivables, and revenue were required.
Criteria: The Organization has grant agreements from the government with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December 31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse (the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the Organization’s year-end. Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end. Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved. Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government. Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.