Audit 403718

Schedule of Expenditures of Federal Awards - Material Weakness Criteria An accounting system and effective internal control environment should support the preparation of the grant reports in accordance with Federal compliance requirements. Condition In fiscal year 2023, the Organization accounting processes and internal controls over Federal reporting were not functioning timely to support generating complete and accurate Schedule of Expenditures of Federal Awards. Cause The Organization experienced staffing shortages and was under the impression that Federal report was guided by the revenue from grants. Effect The lack of controls and understanding over reporting requirements resulted in failure to report the Schedule of Expenditures of Federal Awards. Context The Organization’s accounting processes and internal controls over Federal reporting were not functioning properly. Recommendation We recommend that the Organization maintain appropriately trained and experienced personnel. This will ensure that the accounting processes and internal controls over Federal Reporting will be functioning properly. Management’s Response/View of Responsible Officials Management agrees with this finding and has employed a new Director of Finance.

Reporting and Annual Audit Submission - Significant Deficiency Criteria As per the Code of Federal Regulations, Section 200.512 – Report Submission, the audit must be completed and the Data Collection Form and reporting package must be submitted within the earlier of 30 calendar days after the receipt of the auditor’s report, or nine months after the end of the audit period. The due date for the audit and reporting package submission was March 31, 2024. Condition The audit, Data Collection Form and reporting package were not submitted by the due date March 31, 2024. Cause The Organization was not able to timely prepare for the audit in order for the Uniform Guidance, Data Collection Form and reporting package to be filed by the due date. Effect The audit, Data Collection Form and federal reporting package were not filed on time. Context The Organization was unable to complete the Federal Single Audit by the due date. Recommendation We recommend that all necessary efforts be taken to ensure the timely submission of the audit, Data collection Form, and reporting package. Sufficient internal controls should be designed and implemented to detect and prevent errors in reports and within the accounting system. We also recommend all necessary efforts be taken to ensure timely submission. Management’s Response/View of Responsible Officials Management agrees with this finding.