Criteria: 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 200.512 of the Uniform Guidance states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor’sreport or nine months after the end of the audit period (whichever is earlier). Condition and Context: The Authority did not complete its audit report prior to the required deadline. Cause and Effect: Due to a delay in the compiling of records related to the audit, the Authority was not in compliance with the reporting requirements. Questioned costs: None Repeat finding: Yes Recommendation: We recommend that the Authority complete its audits and submit the required reports by the deadline. Views of responsible officials of the auditee: Management agrees with the finding and the auditors’ recommendation. See Management’s full response in the Corrective Action Plan at the end of this report.
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditor or nine months after the end of the audit period. Condition: As of February 19, 2025, the fiscal year 2023 reporting package and data collection form had not been submitted to the Federal Audit Clearinghouse. Cause: The City’s fiscal year 2023 audit was not completed by nine months after the end of the audit period. Effect: The City is out of compliance with 2 CFR 200.512(a). Recommendation: Procedures should be developed to ensure the single audit reporting package and data collection form are filed by the due date. Response: The City has developed a schedule and timeline to ensure timely filing of the single audit reporting package and data collection form.
2023-005 — Single Audit Report Submission – Material Weakness in Internal Control Over Compliance and Noncompliance (Repeat of finding 2022-003 and 2021-001) Federal program information: Funding agencies: U.S. Department of Interior and U.S. Department of Education Titles: Assistance to Tribally Controlled Community Colleges; Higher Education Institutional Aid; and Education Stabilization Fund ALN Number: 15.027, 84.031, and 84.425 Award years: Various Criteria: The Uniform Guidance 2 CFR 200.512 (a) requires the audit package and data collection from be submitted 30 days after receipt of the auditor’s report or 9 months after the end of the fiscal year, whichever comes first. Condition: The College’s fiscal year 2023 single audit reporting package was not submitted within nine months after the end of the audit period. Questioned Costs: N/A Cause: The College did not have appropriate internal control policies and procedures in place to ensure accounting records and financial statements were reconciled timely and the audit conducted to meet compliance requirements. Effect: The single audit reporting package was submitted after the required reporting time period. Auditor’s Recommendations: To ensure compliance with the Uniform Guidance, the College should prepare accurate, complete, and timely financial statements and ensure an audit is performed to ensure the timely submission of the single audit reporting package. Management’s Response: Management has implemented policies and procedures to ensure the timely submission of single audit reporting package.
2023-005 — Single Audit Report Submission – Material Weakness in Internal Control Over Compliance and Noncompliance (Repeat of finding 2022-003 and 2021-001) Federal program information: Funding agencies: U.S. Department of Interior and U.S. Department of Education Titles: Assistance to Tribally Controlled Community Colleges; Higher Education Institutional Aid; and Education Stabilization Fund ALN Number: 15.027, 84.031, and 84.425 Award years: Various Criteria: The Uniform Guidance 2 CFR 200.512 (a) requires the audit package and data collection from be submitted 30 days after receipt of the auditor’s report or 9 months after the end of the fiscal year, whichever comes first. Condition: The College’s fiscal year 2023 single audit reporting package was not submitted within nine months after the end of the audit period. Questioned Costs: N/A Cause: The College did not have appropriate internal control policies and procedures in place to ensure accounting records and financial statements were reconciled timely and the audit conducted to meet compliance requirements. Effect: The single audit reporting package was submitted after the required reporting time period. Auditor’s Recommendations: To ensure compliance with the Uniform Guidance, the College should prepare accurate, complete, and timely financial statements and ensure an audit is performed to ensure the timely submission of the single audit reporting package. Management’s Response: Management has implemented policies and procedures to ensure the timely submission of single audit reporting package.
2023-005 — Single Audit Report Submission – Material Weakness in Internal Control Over Compliance and Noncompliance (Repeat of finding 2022-003 and 2021-001) Federal program information: Funding agencies: U.S. Department of Interior and U.S. Department of Education Titles: Assistance to Tribally Controlled Community Colleges; Higher Education Institutional Aid; and Education Stabilization Fund ALN Number: 15.027, 84.031, and 84.425 Award years: Various Criteria: The Uniform Guidance 2 CFR 200.512 (a) requires the audit package and data collection from be submitted 30 days after receipt of the auditor’s report or 9 months after the end of the fiscal year, whichever comes first. Condition: The College’s fiscal year 2023 single audit reporting package was not submitted within nine months after the end of the audit period. Questioned Costs: N/A Cause: The College did not have appropriate internal control policies and procedures in place to ensure accounting records and financial statements were reconciled timely and the audit conducted to meet compliance requirements. Effect: The single audit reporting package was submitted after the required reporting time period. Auditor’s Recommendations: To ensure compliance with the Uniform Guidance, the College should prepare accurate, complete, and timely financial statements and ensure an audit is performed to ensure the timely submission of the single audit reporting package. Management’s Response: Management has implemented policies and procedures to ensure the timely submission of single audit reporting package.
2023-005 — Single Audit Report Submission – Material Weakness in Internal Control Over Compliance and Noncompliance (Repeat of finding 2022-003 and 2021-001) Federal program information: Funding agencies: U.S. Department of Interior and U.S. Department of Education Titles: Assistance to Tribally Controlled Community Colleges; Higher Education Institutional Aid; and Education Stabilization Fund ALN Number: 15.027, 84.031, and 84.425 Award years: Various Criteria: The Uniform Guidance 2 CFR 200.512 (a) requires the audit package and data collection from be submitted 30 days after receipt of the auditor’s report or 9 months after the end of the fiscal year, whichever comes first. Condition: The College’s fiscal year 2023 single audit reporting package was not submitted within nine months after the end of the audit period. Questioned Costs: N/A Cause: The College did not have appropriate internal control policies and procedures in place to ensure accounting records and financial statements were reconciled timely and the audit conducted to meet compliance requirements. Effect: The single audit reporting package was submitted after the required reporting time period. Auditor’s Recommendations: To ensure compliance with the Uniform Guidance, the College should prepare accurate, complete, and timely financial statements and ensure an audit is performed to ensure the timely submission of the single audit reporting package. Management’s Response: Management has implemented policies and procedures to ensure the timely submission of single audit reporting package.
2023-005 — Single Audit Report Submission – Material Weakness in Internal Control Over Compliance and Noncompliance (Repeat of finding 2022-003 and 2021-001) Federal program information: Funding agencies: U.S. Department of Interior and U.S. Department of Education Titles: Assistance to Tribally Controlled Community Colleges; Higher Education Institutional Aid; and Education Stabilization Fund ALN Number: 15.027, 84.031, and 84.425 Award years: Various Criteria: The Uniform Guidance 2 CFR 200.512 (a) requires the audit package and data collection from be submitted 30 days after receipt of the auditor’s report or 9 months after the end of the fiscal year, whichever comes first. Condition: The College’s fiscal year 2023 single audit reporting package was not submitted within nine months after the end of the audit period. Questioned Costs: N/A Cause: The College did not have appropriate internal control policies and procedures in place to ensure accounting records and financial statements were reconciled timely and the audit conducted to meet compliance requirements. Effect: The single audit reporting package was submitted after the required reporting time period. Auditor’s Recommendations: To ensure compliance with the Uniform Guidance, the College should prepare accurate, complete, and timely financial statements and ensure an audit is performed to ensure the timely submission of the single audit reporting package. Management’s Response: Management has implemented policies and procedures to ensure the timely submission of single audit reporting package.
2023-005 — Single Audit Report Submission – Material Weakness in Internal Control Over Compliance and Noncompliance (Repeat of finding 2022-003 and 2021-001) Federal program information: Funding agencies: U.S. Department of Interior and U.S. Department of Education Titles: Assistance to Tribally Controlled Community Colleges; Higher Education Institutional Aid; and Education Stabilization Fund ALN Number: 15.027, 84.031, and 84.425 Award years: Various Criteria: The Uniform Guidance 2 CFR 200.512 (a) requires the audit package and data collection from be submitted 30 days after receipt of the auditor’s report or 9 months after the end of the fiscal year, whichever comes first. Condition: The College’s fiscal year 2023 single audit reporting package was not submitted within nine months after the end of the audit period. Questioned Costs: N/A Cause: The College did not have appropriate internal control policies and procedures in place to ensure accounting records and financial statements were reconciled timely and the audit conducted to meet compliance requirements. Effect: The single audit reporting package was submitted after the required reporting time period. Auditor’s Recommendations: To ensure compliance with the Uniform Guidance, the College should prepare accurate, complete, and timely financial statements and ensure an audit is performed to ensure the timely submission of the single audit reporting package. Management’s Response: Management has implemented policies and procedures to ensure the timely submission of single audit reporting package.
Adult Education-Basic Grants to States-ALN #84.002; U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Code of Federal Regulations (2 CFR section 200.512(a)(1) requires that the annual audit and data collection form be submitted no later than 9 months after the end of the audit period. Condition: The annual audit and data collection form submission are being filed after the regulatory deadlines. Context: The Center has spent greater than $750,000 of direct and indirect federal funds during its fiscal year, As a result, the Center is required to have an audit conducted under Uniform Guidance and upon completion of the audit is required to submit a reporting package to the Federal Audit Clearing House. Cause: The Center does not have controls in place to ensure that it is adhering to the timelines established in the Code of Federal Regulation. In addition, there was significant turnover in senior management at the Center during the audit period. Effect: The Center is not in compliance with the Report submission requirements. Questioned Costs: This finding does not result in questioned costs. Identification as a repeat finding: This finding is not reported as a repeated finding. Recommendations: We recommend that the Center implement procedures to ensure that the audit reports are filed within the regulatory deadlines. Views of Responsible Officials: Management has responded to this finding in the Corrective Action Plan which is part of this reporting package.
Adult Education-Basic Grants to States-ALN #84.002; U.S. Department of Education Pass-Through Entity – Pennsylvania Department of Education Criteria: The Code of Federal Regulations (2 CFR section 200.512(a)(1) requires that the annual audit and data collection form be submitted no later than 9 months after the end of the audit period. Condition: The annual audit and data collection form submission are being filed after the regulatory deadlines. Context: The Center has spent greater than $750,000 of direct and indirect federal funds during its fiscal year, As a result, the Center is required to have an audit conducted under Uniform Guidance and upon completion of the audit is required to submit a reporting package to the Federal Audit Clearing House. Cause: The Center does not have controls in place to ensure that it is adhering to the timelines established in the Code of Federal Regulation. In addition, there was significant turnover in senior management at the Center during the audit period. Effect: The Center is not in compliance with the Report submission requirements. Questioned Costs: This finding does not result in questioned costs. Identification as a repeat finding: This finding is not reported as a repeated finding. Recommendations: We recommend that the Center implement procedures to ensure that the audit reports are filed within the regulatory deadlines. Views of Responsible Officials: Management has responded to this finding in the Corrective Action Plan which is part of this reporting package.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding #2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Criteria Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end financial statements. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the forementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1). Condition During the year ended June 30, 2023, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Cause The significant delay was caused primarily due to significant turnover in personnel within the accounting/finance department and efforts related to a merger between HopePHL and Youth Service, Inc., which resulted in a backlog of recording transactions, and in reconciliations not being performed timely. Effects Not performing timely and complete monthly and year-end account reconciliations and closing procedures leads to a continually and growing backlog of transactions and journal entries that are not posted to the accounting system, which renders the accounting information ineffective for making well-informed business decisions. This has led to the expenditure of significant time and effort by many to complete the required reconciliation procedures and prevented the timely delivery of financial statements to management, board members and funders. In addition, this led to the Organization to be noncompliant with required deadlines for Uniform Guidance and Data Collection Form submission. Questions Costs None. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Views of Responsible Officials Management agrees with the finding. Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process.
Finding 2023-005: Late Reporting and Noncompliance with Reporting Requirements Federal Agencies: U.S. Department of the Treasury (SLFRF) and U.S. Department of the Interior (PILT) Pass through agency: Direct (SLFRF) and State of Alaska, Department of Commerce, Community, and Economic Development (PILT) Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) and Payments in Lieu of Taxes (PILT) Assistance Listing Numbers: 21.027 (CSLFRF) and 15.226 (PILT) Award Numbers: AK0030 (CSLFRF) and None (PILT) Award Period: 2021(CSLFRF) and 2023 (PILT) Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR part 200, subpart F, section 200.512 requires that the reporting package must be submitted within 30 calendar days after the report issuance or nine months after the end of the audit period (whichever is earlier). Condition and Context: The City did not adhere to the Uniform Guidance requirement of submitting the reporting package and Form SF-SAC within the earlier of nine months plus any extensions after year end, or 30 days after the report issuance date. Cause: Lack of internal controls over Uniform Guidance reporting requirements. Effect: The City is not in compliance with 2 CFR part 200, subpart F, section 200.512. Questioned Costs: None. Repeat Finding: Yes, this is a repeat of Finding 2022-002, and since it is a repeat finding we believe this to be a systemic issue. Recommendation: We recommend the City implement policies and procedures to ensure timely completion of its Federal Single Audit. Management Response: Management concurs with this finding. See Corrective Action Plan.
Finding 2023-005: Late Reporting and Noncompliance with Reporting Requirements Federal Agencies: U.S. Department of the Treasury (SLFRF) and U.S. Department of the Interior (PILT) Pass through agency: Direct (SLFRF) and State of Alaska, Department of Commerce, Community, and Economic Development (PILT) Federal Programs: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) and Payments in Lieu of Taxes (PILT) Assistance Listing Numbers: 21.027 (CSLFRF) and 15.226 (PILT) Award Numbers: AK0030 (CSLFRF) and None (PILT) Award Period: 2021(CSLFRF) and 2023 (PILT) Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR part 200, subpart F, section 200.512 requires that the reporting package must be submitted within 30 calendar days after the report issuance or nine months after the end of the audit period (whichever is earlier). Condition and Context: The City did not adhere to the Uniform Guidance requirement of submitting the reporting package and Form SF-SAC within the earlier of nine months plus any extensions after year end, or 30 days after the report issuance date. Cause: Lack of internal controls over Uniform Guidance reporting requirements. Effect: The City is not in compliance with 2 CFR part 200, subpart F, section 200.512. Questioned Costs: None. Repeat Finding: Yes, this is a repeat of Finding 2022-002, and since it is a repeat finding we believe this to be a systemic issue. Recommendation: We recommend the City implement policies and procedures to ensure timely completion of its Federal Single Audit. Management Response: Management concurs with this finding. See Corrective Action Plan.
Finding 2023-002 Significant Deficiency in Internal Control over Compliance, Noncompliance - Reporting Identification of the federal program Agency Department of Transportation ALN 20.509 Program Formula Grants for Rural Areas and Tribal Transit Program Award Number 2508-20-0202 & 2508-21-0301 Award Year 2020 and 2021 Criteria or specific requirement Per 2 CFR Chapter I and Chapter II part 200 section 200.512 states that “(1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Form SF-SAC for the fiscal year ended June 30, 2023 was not filed on time. Cause The audit was not completed in time to file the form. Effect or Potential Effect The Organization was not able to file the Form SF-SAC by the required time. Questioned costs None Context The Form SF-SAC is due nine months after the fiscal year-end or within 30 days of the report date. The form for the fiscal year ended June 30, 2023 was filed late. Identification as a repeat finding Yes. This finding was reported as Finding 2022-002 in the prior audit. Recommendation We recommend CARTS implement internal control procedures to ensure timely submission of the Form SF-SAC in the future. Views of Responsible Officials Management concurs with the findings. Management will ensure timely year end closing and review of audit schedules to ensure timely reporting.
2023-006 (2022-006) – LATE DATA COLLECTION FORM Type of Finding: (G) –Instance of Non-Compliance Related to Federal Awards Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Statement of Condition Heading Home submitted the data collection form after the required due date. Context Heading Home was required to submit its data collection form for the year ended June 30, 2023, by March 31, 2024. Criteria The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause Heading Home did not submit the June 30, 2023, data collection form and reporting package by the due date due to significant program expansion and a backlog created within the administrative team. This delay also affected the preparation and completion of the fiscal year 2023 audit. Effect Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed promptly. View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.
2023-006 (2022-006) – LATE DATA COLLECTION FORM Type of Finding: (G) –Instance of Non-Compliance Related to Federal Awards Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Statement of Condition Heading Home submitted the data collection form after the required due date. Context Heading Home was required to submit its data collection form for the year ended June 30, 2023, by March 31, 2024. Criteria The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause Heading Home did not submit the June 30, 2023, data collection form and reporting package by the due date due to significant program expansion and a backlog created within the administrative team. This delay also affected the preparation and completion of the fiscal year 2023 audit. Effect Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed promptly. View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.
2023-006 (2022-006) – LATE DATA COLLECTION FORM Type of Finding: (G) –Instance of Non-Compliance Related to Federal Awards Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Statement of Condition Heading Home submitted the data collection form after the required due date. Context Heading Home was required to submit its data collection form for the year ended June 30, 2023, by March 31, 2024. Criteria The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause Heading Home did not submit the June 30, 2023, data collection form and reporting package by the due date due to significant program expansion and a backlog created within the administrative team. This delay also affected the preparation and completion of the fiscal year 2023 audit. Effect Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed promptly. View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.
2023-006 (2022-006) – LATE DATA COLLECTION FORM Type of Finding: (G) –Instance of Non-Compliance Related to Federal Awards Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Statement of Condition Heading Home submitted the data collection form after the required due date. Context Heading Home was required to submit its data collection form for the year ended June 30, 2023, by March 31, 2024. Criteria The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause Heading Home did not submit the June 30, 2023, data collection form and reporting package by the due date due to significant program expansion and a backlog created within the administrative team. This delay also affected the preparation and completion of the fiscal year 2023 audit. Effect Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed promptly. View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.
2023-006 (2022-006) – LATE DATA COLLECTION FORM Type of Finding: (G) –Instance of Non-Compliance Related to Federal Awards Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Statement of Condition Heading Home submitted the data collection form after the required due date. Context Heading Home was required to submit its data collection form for the year ended June 30, 2023, by March 31, 2024. Criteria The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause Heading Home did not submit the June 30, 2023, data collection form and reporting package by the due date due to significant program expansion and a backlog created within the administrative team. This delay also affected the preparation and completion of the fiscal year 2023 audit. Effect Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed promptly. View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.
2023-006 (2022-006) – LATE DATA COLLECTION FORM Type of Finding: (G) –Instance of Non-Compliance Related to Federal Awards Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Statement of Condition Heading Home submitted the data collection form after the required due date. Context Heading Home was required to submit its data collection form for the year ended June 30, 2023, by March 31, 2024. Criteria The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause Heading Home did not submit the June 30, 2023, data collection form and reporting package by the due date due to significant program expansion and a backlog created within the administrative team. This delay also affected the preparation and completion of the fiscal year 2023 audit. Effect Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed promptly. View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.
2023-006 (2022-006) – LATE DATA COLLECTION FORM Type of Finding: (G) –Instance of Non-Compliance Related to Federal Awards Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Statement of Condition Heading Home submitted the data collection form after the required due date. Context Heading Home was required to submit its data collection form for the year ended June 30, 2023, by March 31, 2024. Criteria The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause Heading Home did not submit the June 30, 2023, data collection form and reporting package by the due date due to significant program expansion and a backlog created within the administrative team. This delay also affected the preparation and completion of the fiscal year 2023 audit. Effect Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed promptly. View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.
2023-006 (2022-006) – LATE DATA COLLECTION FORM Type of Finding: (G) –Instance of Non-Compliance Related to Federal Awards Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Statement of Condition Heading Home submitted the data collection form after the required due date. Context Heading Home was required to submit its data collection form for the year ended June 30, 2023, by March 31, 2024. Criteria The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause Heading Home did not submit the June 30, 2023, data collection form and reporting package by the due date due to significant program expansion and a backlog created within the administrative team. This delay also affected the preparation and completion of the fiscal year 2023 audit. Effect Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed promptly. View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.
2023-006 (2022-006) – LATE DATA COLLECTION FORM Type of Finding: (G) –Instance of Non-Compliance Related to Federal Awards Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Statement of Condition Heading Home submitted the data collection form after the required due date. Context Heading Home was required to submit its data collection form for the year ended June 30, 2023, by March 31, 2024. Criteria The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause Heading Home did not submit the June 30, 2023, data collection form and reporting package by the due date due to significant program expansion and a backlog created within the administrative team. This delay also affected the preparation and completion of the fiscal year 2023 audit. Effect Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed promptly. View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.
2023-006 (2022-006) – LATE DATA COLLECTION FORM Type of Finding: (G) –Instance of Non-Compliance Related to Federal Awards Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Statement of Condition Heading Home submitted the data collection form after the required due date. Context Heading Home was required to submit its data collection form for the year ended June 30, 2023, by March 31, 2024. Criteria The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause Heading Home did not submit the June 30, 2023, data collection form and reporting package by the due date due to significant program expansion and a backlog created within the administrative team. This delay also affected the preparation and completion of the fiscal year 2023 audit. Effect Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed promptly. View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.
Finding number: 2023-001 Federal Assistance Listing No: 14.139 Program name: Mortgage Insurance Rental Housing in Urban Renewal Areas Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: n/a Grant number: n/a Federal award year: 2023 Finding type: Significant deficiency and non-compliance Compliance requirement: Reporting Questioned costs: n/a Repeat finding: Yes Criteria: In accordance with the requirements of CFR §200.512, the audit shall be completed and the data collection form and reporting package shall be submitted to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report, or nine months after the end of the audit period. Condition: M. Carter Plaza did not electronically submit its June 30, 2022 Single Audit reporting package to the Federal Clearinghouse within the required time period. Cause: M. Carter Plaza’s 2022 accounting records were not closed in a timely matter and the audit was not completed prior to the data collection form due date. Effect: M. Carter Plaza did not comply with CFR §200.512. The late submission results in non-compliance for all federal programs. Audit Recommendation: We recommend that management implement procedures to ensure that all required reporting is submitted in a timely manner and in accordance with CFR §200.512 deadlines. Management’s Response: The organization experienced significant turnover in the Fiscal Department beginning in 2021. Work was delayed as new staff required training on processes in conjunction with working through a large backlog of work in the Department that was necessary to complete in order to prepare the Financial Statements for audit. In addition to adapting its processes in the Fiscal Department to ensure the continuance of proper separation of duties and adherence to policies and procedures during staff transitions, Management is developing procedures to hire, train, and retain Fiscal Staff to help stabilize the department to ensure the work can continue in the event of unexpected staff turnover. Management anticipates that these measures will have a positive impact on the timeliness of future audit processes.
The Uniform Guidance 2 CFR 200.512(a) requires the City's audit to be completed and submitted within nine months after the end of the audit period, or March 31, 2024. The reporting package was not submitted until May 2025. We recommend the City file the reporting package timely.
The Uniform Guidance 2 CFR 200.512(a) requires the City's audit to be completed and submitted within nine months after the end of the audit period, or March 31, 2024. The reporting package was not submitted until May 2025. We recommend the City file the reporting package timely.
The Uniform Guidance 2 CFR 200.512(a) requires the City's audit to be completed and submitted within nine months after the end of the audit period, or March 31, 2024. The reporting package was not submitted until May 2025. We recommend the City file the reporting package timely.
The Uniform Guidance 2 CFR 200.512(a) requires the City's audit to be completed and submitted within nine months after the end of the audit period, or March 31, 2024. The reporting package was not submitted until May 2025. We recommend the City file the reporting package timely.
The Uniform Guidance 2 CFR 200.512(a) requires the City's audit to be completed and submitted within nine months after the end of the audit period, or March 31, 2024. The reporting package was not submitted until May 2025. We recommend the City file the reporting package timely.
The Uniform Guidance 2 CFR 200.512(a) requires the City's audit to be completed and submitted within nine months after the end of the audit period, or March 31, 2024. The reporting package was not submitted until May 2025. We recommend the City file the reporting package timely.
The Uniform Guidance 2 CFR 200.512(a) requires the City's audit to be completed and submitted within nine months after the end of the audit period, or March 31, 2024. The reporting package was not submitted until May 2025. We recommend the City file the reporting package timely.
Finding 2023-002: Material Weakness, Late Issuance of the 2023 Single Audit Reporting Criteria/Context: Uniform Guidance 2 CFR 200.512(a) requires that each organization’s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Applicable to all assistance listing numbers (ALN’s) and federal agencies (and passthrough entities) included on the accompanying schedule of expenditures of federal awards. Condition/Finding: The Single Audit packages for the City’s fiscal years ended June 30, 2023, June 30, 2022 and June 30, 2021 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024, March 31, 2023 and September 30, 2022, respectively. The City missed the filing deadlines, making the filings for 2023, 2022 and 2021 late. Cause: The cause is the lack of effective controls over financial reporting resulting in delays in both the Financial Statement Audit and Single Audit. Effect or Potential Effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. In addition, late filings result in noncompliance with the requirements of the Uniform Guidance and makes the City ineligible for consideration as a low risk auditee under Uniform Guidance, expanding the scope and cost of the single audit. Recommendation: We recommend the City evaluate the process and design of internal controls over financial reporting, including the SEFA and SESA, in order to ensure readiness for the audit and to avoid late filing of the data collection form. Views of Responsible Officials: Management agrees with the finding. Questioned Costs: None Context: The June 30, 2023, 2022 and 2021 Single Audit packages.
Finding 2023-002: Material Weakness, Late Issuance of the 2023 Single Audit Reporting Criteria/Context: Uniform Guidance 2 CFR 200.512(a) requires that each organization’s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Applicable to all assistance listing numbers (ALN’s) and federal agencies (and passthrough entities) included on the accompanying schedule of expenditures of federal awards. Condition/Finding: The Single Audit packages for the City’s fiscal years ended June 30, 2023, June 30, 2022 and June 30, 2021 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024, March 31, 2023 and September 30, 2022, respectively. The City missed the filing deadlines, making the filings for 2023, 2022 and 2021 late. Cause: The cause is the lack of effective controls over financial reporting resulting in delays in both the Financial Statement Audit and Single Audit. Effect or Potential Effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. In addition, late filings result in noncompliance with the requirements of the Uniform Guidance and makes the City ineligible for consideration as a low risk auditee under Uniform Guidance, expanding the scope and cost of the single audit. Recommendation: We recommend the City evaluate the process and design of internal controls over financial reporting, including the SEFA and SESA, in order to ensure readiness for the audit and to avoid late filing of the data collection form. Views of Responsible Officials: Management agrees with the finding. Questioned Costs: None Context: The June 30, 2023, 2022 and 2021 Single Audit packages.
Finding 2023-002: Material Weakness, Late Issuance of the 2023 Single Audit Reporting Criteria/Context: Uniform Guidance 2 CFR 200.512(a) requires that each organization’s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Applicable to all assistance listing numbers (ALN’s) and federal agencies (and passthrough entities) included on the accompanying schedule of expenditures of federal awards. Condition/Finding: The Single Audit packages for the City’s fiscal years ended June 30, 2023, June 30, 2022 and June 30, 2021 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024, March 31, 2023 and September 30, 2022, respectively. The City missed the filing deadlines, making the filings for 2023, 2022 and 2021 late. Cause: The cause is the lack of effective controls over financial reporting resulting in delays in both the Financial Statement Audit and Single Audit. Effect or Potential Effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. In addition, late filings result in noncompliance with the requirements of the Uniform Guidance and makes the City ineligible for consideration as a low risk auditee under Uniform Guidance, expanding the scope and cost of the single audit. Recommendation: We recommend the City evaluate the process and design of internal controls over financial reporting, including the SEFA and SESA, in order to ensure readiness for the audit and to avoid late filing of the data collection form. Views of Responsible Officials: Management agrees with the finding. Questioned Costs: None Context: The June 30, 2023, 2022 and 2021 Single Audit packages.
Finding 2023-002: Material Weakness, Late Issuance of the 2023 Single Audit Reporting Criteria/Context: Uniform Guidance 2 CFR 200.512(a) requires that each organization’s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Applicable to all assistance listing numbers (ALN’s) and federal agencies (and passthrough entities) included on the accompanying schedule of expenditures of federal awards. Condition/Finding: The Single Audit packages for the City’s fiscal years ended June 30, 2023, June 30, 2022 and June 30, 2021 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024, March 31, 2023 and September 30, 2022, respectively. The City missed the filing deadlines, making the filings for 2023, 2022 and 2021 late. Cause: The cause is the lack of effective controls over financial reporting resulting in delays in both the Financial Statement Audit and Single Audit. Effect or Potential Effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. In addition, late filings result in noncompliance with the requirements of the Uniform Guidance and makes the City ineligible for consideration as a low risk auditee under Uniform Guidance, expanding the scope and cost of the single audit. Recommendation: We recommend the City evaluate the process and design of internal controls over financial reporting, including the SEFA and SESA, in order to ensure readiness for the audit and to avoid late filing of the data collection form. Views of Responsible Officials: Management agrees with the finding. Questioned Costs: None Context: The June 30, 2023, 2022 and 2021 Single Audit packages.