Corrective Action Plans

MVF will implement additional training and monitoring to ensure timeliness with compliance requirements.

Recommendation: We recommend the Coalition continuously monitor its expenditures of federal funds and begin the process of engaging an Auditor in a timely manner when the Coalition is aware that it will exceed the threshold triggering a single audit. Views of Responsible Officials: Per management, they will make it a priority to be aware of all deadlines related to the submission of quarterly and annual reports for federal awards and submit these on time.

Corrective Action Plan: All federal grant revenue will be tracked with specific coding to ensure that Directors are aware of revenue accruals as they relate to minimum thresholds for single audits, and in a manner that allows for timely filing of future audits to the single audit clearing house. Monthly reconciliations will ensure that general ledger entries and account balances are updated and corrected on a timely basis, and in a manner that will allow for enough time for the audit to be completed by the deadline. Anticipated Completion Date: Completed

Recommendation: We recommend the Alliance develop a additional policies and procedures that ensure all reporting requirements are met on an annual basis. If the Alliance lacks sufficient internal resources, they should consult with an external resource to draft the procurement policy. Views of Responsible Officials: Management partially agrees. There have been instances when a report will appear for the first time on the PMS website for a period that has already closed, and it shows as delinquent. PMS is checked at least monthly for reports due soon. All of the finance team will add reminders to their calendar, so this is not repeated

Organization's Response: MCJ agrees that the single audit report was not timely filed. As referenced in the Finding, MCJ had not previously exceeded the $750,000 threshold for the single audit requirement. Moving forward, MCJ will review federal expenditures for federal awards at the close of the fiscal year to determine if the threshold for the submission of a single audit has been exceeded. Furthermore, MCJ will once again work with its auditors to schedule MCJ’s audit in order to have the audit completed and any single audit report, if necessary, filed on a timely basis.

2 CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Section 200.507 of the Uniform Guidance states that the program-specific audit shall be completed, and reporting required submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit, unless a longer period is specified in a program-specific audit guide. During 2023, we have strengthened internal controls related to review of the quarterly lost revenue calculations and reporting in the PRF reporting portal. Going forward, we will complete our audits and submit the required reports by the deadlines. We have taken appropriate steps to identify all other assistance received by quarter during the period of availability on the PRF report going forward.

View of Responsible Officials and Planned Corrective Actions: Despite Alma having a well-established accounting process in place to ensure the timely and accurate generation of financial reports, the delays in presenting schedules during this audit were influenced by unforeseen circumstances. Notably, scheduling conflicts arose due to the audit coinciding with either concurrent program reviews or audits mandated by the County, compelling Alma to prioritize accordingly. Alma is proactively adapting its infrastructure and operational framework to enhance efficiency continuously. Management expresses confidence in the effectiveness of the current plan and response, believing it will mitigate similar issues in future audits. Personnel Responsible and position: Lourdes Caracoza, CEO/President Wally Racela, Chief Financial Officer Anticipated Completion: December 31, 2023

Management of the Foundation concurs with the audit finding. When management discovered the requirement had not been met, they immediately contacted an independent auditor to perform the program-specific audit to satisfy the reporting requirements.