Finding Reference #: 2022-001
Description of Finding:
Significant Deficiency in Internal Controls over Compliance.
Identification of the Federal Program: U.S. Department of Health and Human Services; CFDA 93.498
Criteria or Specific Requirement: Recipients of federal awards must establish internal c...
Finding Reference #: 2022-001
Description of Finding:
Significant Deficiency in Internal Controls over Compliance.
Identification of the Federal Program: U.S. Department of Health and Human Services; CFDA 93.498
Criteria or Specific Requirement: Recipients of federal awards must establish internal controls over reports that
are prepared and submitted.
Finding/Condition: Pursuant to the reporting requirement set forth by the Department of Health and Human
Services, the Organization is required to submit the single audit to the Federal Audit Clearinghouse within the
sooner of 30 days of the issuance of the audit report or nine months after the end of the Organization’s fiscal
year. During our reporting period, the audit was not completed and filed timely.
Corrective Action:
As of January 2023, the Organization underwent a leadership transition, including the appointment of a new
Executive Director and a restructuring of the finance team’s roles and responsibilities. This was also the
Organization’s first year subject to a Single Audit, which introduced new compliance and reporting
requirements. Although the audit was not submitted within the required timeframe, strategic steps have since
been taken to ensure full compliance moving forward. Under new leadership, a strengthened financial
management team with clearly defined responsibilities now supports our established internal controls,
enhancing our capacity to meet federal reporting standards. The Organization is currently finalizing the 2022
Single Audit and is on track to submit it by April 30, 2025.
Name of Responsible Person: Emogene Nelson, Executive Director
Projected Completion Date: Completed at time of report.
Cause: The audit filing deadline was missed due to several overlapping challenges, including the lasting
operational impacts of COVID-19, which strained financial systems and overwhelmed existing staff.
Compounding this were ongoing employee retention issues that affected continuity and capacity within the
finance team. During the same period, the Organization transitioned from a desktop-based accounting system
to an online platform, requiring specialized support to rebuild data files, ensure accuracy, and resolve reporting
issues. These factors, along with leadership transitions, contributed to the delay. The Organization has since
stabilized its financial operations and is on track to submit the 2022 Single Audit by April 30, 2025.
Questioned Cost: None