Audit 359625

FY End
2024-06-30
Total Expended
$1.00M
Findings
16
Programs
6
Organization: Challenge Program, Inc. (DE)
Year: 2024 Accepted: 2025-06-24

Organization Exclusion Status:

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Contacts

Name Title Type
EE9PALCQFGA7 Andrew McKnight Auditee
3026550945 Frank Defroda Auditor
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Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Challenge Program, Inc. and is presented on the accrual basis of accounting. The information is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: Y Rate Explanation: For the year ended June 30, 2024, Challenge Program, Inc. has elected to use to 10% de minimis indirect cost rate, as permitted by the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Challenge Program, Inc. and is presented on the accrual basis of accounting. The information is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: NOTE B – INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Challenge Program, Inc. and is presented on the accrual basis of accounting. The information is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: Y Rate Explanation: For the year ended June 30, 2024, Challenge Program, Inc. has elected to use to 10% de minimis indirect cost rate, as permitted by the Uniform Guidance. For the year ended June 30, 2024, Challenge Program, Inc. has elected to use to 10% de minimis indirect cost rate, as permitted by the Uniform Guidance.

Finding Details

Criteria: According to the Delaware Division of Employment & Training, the Monthly Financial Report is due on the 12th of each month. This ensures timely reimbursement from the Department of Labor and compliance with requirements. Condition: During the audit, WGA noted that 6 of the 12 months of reporting were submitted after the 12th reporting deadline. All of the 6 late reports were submitted between the 13th and the 18th of the month. Cause: The entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Monthly Financial Report timely results in non-compliance with the Delaware Division of Employment & Training. This can lead to the loss of or decrease in funding. Moreover, it affects transparency and accountability of the entity's reporting process. Recommendation: We recommend that management implement procedures to ensure that priority is given to complete the Monthly Financial Report and submit it timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Delaware Division of Employment & Training, the Monthly Financial Report is due on the 12th of each month. This ensures timely reimbursement from the Department of Labor and compliance with requirements. Condition: During the audit, WGA noted that 6 of the 12 months of reporting were submitted after the 12th reporting deadline. All of the 6 late reports were submitted between the 13th and the 18th of the month. Cause: The entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Monthly Financial Report timely results in non-compliance with the Delaware Division of Employment & Training. This can lead to the loss of or decrease in funding. Moreover, it affects transparency and accountability of the entity's reporting process. Recommendation: We recommend that management implement procedures to ensure that priority is given to complete the Monthly Financial Report and submit it timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.
Criteria: According to the Uniform Guidance, entities are required to submit their Data Collection Form (DCF) within nine months following the end of the fiscal year. This ensures timely reporting and compliance with regulatory requirements. Condition: Because the June 30, 2024 audit is being issued in May 2025, the Data Collection Form will be filed approximately 2 months after the required submission deadline. Cause: The delay in completing the audit was due to this being the first year the entity was subject to a single audit. In addition, the entity was short-staffed for the majority of the year under audit, causing extra work for the employees. Effect: Failure to submit the Data Collection Form timely results in non-compliance with the Uniform Guidance. This can lead to potential penalties, and loss of or decreases in funding. Moreover, it affects transparency and accountability of the entity’s financial reporting process. Recommendation: We recommend that management implement procedures to ensure that documents are readily available to multiple personnel in order to complete the audit and submit the Data Collection Form timely.