Audit 371485

Criteria: As required under the Uniform Guidance, the single audit and data collection reporting package are required to be submitted to the Federal Audit Clearinghouse within 9 months after the end of the audit period. Condition: For the years ended September 30, 2022, September 30, 2023, and September 30, 2024 the financial statement audit and single audit were not scheduled or completed in a timely manner. As a result, the single audit and data collection reporting package were not completed or submitted to Federal Audit Clearinghouse in accordance with the requirements for Reporting under the Uniform Guidance.Cause: The commencement of the 2022 and 2023 audit of the Organization was delayed primarily due to budgetary constraints, difficulty in identifying and engaging an audit firm capable of completing the single audit and due to the fact that the 2021 audit and 2022 audit were required to be completed before the 2023 audit could commence. The audit for 2023 was not completed and issued until November 20, 2024, As a result, the audit firm was not engaged until December 19, 2024 to complete the financial statement and single audit for the year ended September 30, 2023. The Organization was not fully prepared for the audit until mid-April 2024, and due to other previously scheduled client engagements and other scheduling difficulties, the audit firm was unable to fully complete work on the 2023 audit until October 2025. Effect: The financial statements and single audit were not completed in a timely manner and AIRS is not in compliance with the required timing of submission of the single audit and data collection package to the Federal Audit Clearinghouse as required under the Uniform Guidance for years ended September 30, 2023 and September 30, 2024. Questioned Costs: None reported Repeat Finding from Prior Year: Yes. Recommendation: AIRS should improve its financial reporting process and procedures to ensure that it completes financial statement and single audits in a timely and efficient manner and ensure that its financial statements, single audit and data collection package are completed and properly submitted to the Federal Audit Clearinghouse within the required 9 months after fiscal year end as required by the Uniform Guidance.

Criteria: A non-federal entity is required to have certain written policies and procedure in compliance with Uniform Guidance and must comply with the procurement standards as described in 2 CFR 200.318 through 2 CFR 200.327. Condition: AIRS does not appear to have created written purchasing or procurement policies and procedures as required by 2 CFR 200.318(a). Since AIRS is an affiliate organization of the Ethiopian Community Development Council (ECDC), it appears that the relationship between AIRS and ECDC meets the “affiliate” requirement under 2 CFR 200.318 (c) (2). It does appear that AIRS has created written standards of conduct covering organizational conflicts of interest. Cause: Management has not created or maintained certain written policies and procedures as required under 2 CFR 200.318. Effect: AIRS is not in compliance with certain written policies and procedures as required under 2 CFR 200.318. Questioned Costs: None reported. Repeat Finding from Prior Year: Yes. Recommendation: In response to Finding 2021-006 during the audit for the year ended September 30, 2021, management has started the process of creating, updating and revising its written policies and procedures. I commend management for their efforts. However, I strongly recommend that management and board complete the written procurement policies and procedures and written standards of conduct covering organizational conflicts of interest prior to start of the 2024 audit. Views of Responsible Officials: Management concurs with this audit finding.

Federal Financial Assistance Listing Number: 93.567. Questioned costs: $895,814. Criteria: The federal program requirements for the Refugee and Entrant Assistance Voluntary Agency Programs (FFA Listing No. 93.567) and the subaward agreement with the Ethiopian Community Development Council, Inc. (ECDC) requires a match of $1 of value through non-federal cash, in-kind donations and volunteer time for each $2 of grant award received (50% match). Condition: AIRS does not appear received sufficient non-federal cash, in-kind donations and volunteer time to satisfy the matching requirement for the year ended September 30, 2023. AIRS submitted repotting to ECDC documenting a total match amount received during the year ended September 30, 2023 of $217,048. However, the total award received and expended during 2023 was $895,814. Thus, the required match amount for year ended September 30, 2023 is $447,907. In addition, certain amounts included in the $217,048 match amount reported to ECDC, of approximately $135,000, did not appear to be properly supported or valued. Finally, AIRS also failed to properly record certain of the in-kind matching amounts to its financial statements during the year ended September 30, 2024 (See Finding 2023-002). Cause: AIRS did not receive or record sufficient matching amounts in order to satisfy the matching requirements of the federal award program. Effect: AIRS is not in compliance with the matching compliance requirement for the federal award. Questioned Costs: $895,814. Repeat Finding from Prior Year: No. Recommendation: I strongly recommend that management engage in discussions with both program oversight personnel at ECDC and at the US Department of Health and Human Services to determine any further actions required related to this federal program award. Views of Responsible Officials: Management concurs with this audit finding.