Audit 377878

Finding: 2024-001 Oversight of Financial Reporting Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting and timely performance of associated financial reporting functions. Condition: During the current year audit it was determined that: 1. Numerous correcting journal entries were necessary to arrive at the adjusted financial statement amounts. 2. As discussed in finding 2024-003 the financial statement audit was not timely completed. Cause: The Organization has had staffing issues during the year and last year and numerous positions were either unfilled or there was turnover resulting in inefficient operations. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2024. Recommendation: The Organization needs to devote more resources to the finance department so that adequate staffing levels can be maintained by qualified individuals. Views of Responsible Officials: See Attachment A.

Finding: 2024-002 Reporting Information in the Schedule of Expenditures of Federal Awards “SEFA” Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting to ensure that all federal awards with expenditures are identified and reported in the SEFA. Condition: During the current year audit it was determined that: 1. Numerous requests were made of management to identify the population of all Federal Expenditures, including pass thru entity and aggregation of awards by Assistance Listing Number. 2. While performing the December 31, 2024 audit it was noted that the SEFA for the December 31, 2023 audit appears to not include all expenditures for the year. Cause: The Organization has had staffing issues during the year and last year and numerous positions were either unfilled or there was turnover resulting in inefficient operations. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2024. Recommendation: The Organization needs to devote more resources to the finance department so that adequate staffing levels can be maintained by qualified individuals. Views of Responsible Officials: See Attachment A.

Finding: 2024-003 Timely Single Audit Submission Criteria: Uniform Guidance requires that the Federal Audit Clearinghouse (FAC) receive the single audit within the earlier of nine-months from year end or 30 days upon receipt of the final audit. Condition: Due to staffing issues and unforeseen circumstances, the FAC did not timely received the audited financial statements. Cause: The Organization has had staffing issues during the year and numerous positions were either unfilled or there was turnover resulting in inefficient operations. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2024. Questioned Costs: None reported Context/Sampling: Delay in submission to the FAC is due to personnel staffing issues. Repeat Finding from Prior Year: Yes Recommendation: The Organization needs to devote more resources to the finance department so that adequate staffing levels can be maintained by qualified individuals. Views of Responsible Officials: See Attachment A.