Finding No. 2023-001: Prior Year Reporting Package and Data Collection Not Filed Timely a. The Windham Housing Development Fund Company, Inc. December 31, 2022 reporting package and data collection form was not filed with the Federal Audit Clearinghouse on time. b. Criteria: 2 CFR section 200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. c. Effect of condition: The effect is that the project would not be considered a "Low Risk Auditee" for at least the fiscal years ending December 31, 2023 and December 31, 2024. This designation will require the auditor to audit at least 40% of the project's programs as Major programs until such time that the project may be considered a “Low Risk Auditee” again. d. Cause of condition: The reporting package and data collection form was submitted to the Federal Audit Clearinghouse 171 days late due to a delay in receiving audit evidence. The form was submitted on March 19, 2024. e. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. f. Views of responsible officials and planned corrective actions: Windham Housing Development Fund Company, Inc agrees with the finding and the auditor’s recommendations have been adopted.
Finding No. 2023-001: Prior Year Reporting Package and Data Collection Not Filed Timely a. The Kamargo Housing Development Fund Company, Inc. December 31, 2022 reporting package and data collection form was not filed with the Federal Audit Clearinghouse on time. b. Criteria: 2 CFR section 200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. c. Effect of condition: The effect is that the project would not be considered a "Low Risk Auditee" for at least the fiscal years ending December 31, 2023 and December 31, 2024. This designation will require the auditor to audit at least 40% of the project's programs as Major programs until such time that the project may be considered a “Low Risk Auditee” again. d. Cause of condition: The reporting package and data collection form was submitted to the Federal Audit Clearinghouse late due to management not monitoring CPA firm to enter data in data collection form as agreed upon resulting in a late filing. The form is pending management obtaining the unique entity ID assigned. e. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. f. Views of responsible officials and planned corrective actions: Kamargo Housing Development Fund Company, Inc. agrees with the finding and the auditor’s recommendations have been adopted.
Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Project's December 31, 2022 financial statement audit was not submitted to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the auditor's report. Cause Management within the Project erroneously did not authorize submission of the financial statements to the Federal Audit Clearinghouse, thus the financial statements were not submitted to the Federal Audit Clearinghouse within the nine-month or 30-day window. Effect of Condition The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.
Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Project's December 31, 2022 financial statement audit was not submitted to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the auditor's report. Cause Management within the Project erroneously did not authorize submission of the financial statements to the Federal Audit Clearinghouse, thus the financial statements were not submitted to the Federal Audit Clearinghouse within the nine-month or 30-day window. Effect of Condition The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.
Statement of Condition The Project's December 31, 2022, financial statement audit was not submitted to the Federal Audit Clearinghouse. Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Cause Management was unaware of the criteria within Uniform Guidance to submit the audit to the Federal Audit Clearinghouse. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Reporting Views of Responsible Officials Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.
Statement of Condition The Project's December 31, 2022, financial statement audit was not submitted to the Federal Audit Clearinghouse. Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Cause Management was unaware of the criteria within Uniform Guidance to submit the audit to the Federal Audit Clearinghouse. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Reporting Views of Responsible Officials Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.
Statement of Condition The Project's December 31, 2022, financial statement audit was not submitted to the Federal Audit Clearinghouse. Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Cause Management was unaware of the criteria within Uniform Guidance to submit the audit to the Federal Audit Clearinghouse. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Reporting Views of Responsible Officials Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.
Finding reference number: #2023-001 Statement of condition #2023-001: The Corporation did not submit the Data Collection Form (SF-SAC) for the year ended December 31, 2022 to the Office of Management and Budget (OMB) in a timely manner as required by Uniform Guidance section 2 CFR 200.512. Criteria: Uniform Guidance section 2 CFR 200.512 requires that Data Collection Form be submitted to OMB within the earlier of 30 days after the date of the auditor's report, or nine months after the end of the audit period. Effect or potential effect: The Corporation was not in compliance with Uniform Guidance. Cause: The Corporation did not file the Data Collection Form by July 28, 2023, thirty days after the date of the auditor's report, due to administrative delays. Recommendation: The Corporation should submit all future Data Collection Forms in the required time frame. Completion Date: August 28, 2023 Reporting views of responsible officials: Agree. Management concurs with the finding and the auditor's recommendation. On August 29, 2023, the Data Collection Form was submitted to OMB. No further action is required and the finding is resolved.
Finding reference number: #2023-001 Statement of condition #2023-001: The Corporation did not submit the Data Collection Form (SF-SAC) for the year ended December 31, 2022 to the Office of Management and Budget (OMB) in a timely manner as required by Uniform Guidance section 2 CFR 200.512. Criteria: Uniform Guidance section 2 CFR 200.512 requires that Data Collection Form be submitted to OMB within the earlier of 30 days after the date of the auditor's report, or nine months after the end of the audit period. Effect or potential effect: The Corporation was not in compliance with Uniform Guidance. Cause: The Corporation did not file the Data Collection Form by July 28, 2023, thirty days after the date of the auditor's report, due to administrative delays. Recommendation: The Corporation should submit all future Data Collection Forms in the required time frame. Completion Date: August 28, 2023 Reporting views of responsible officials: Agree. Management concurs with the finding and the auditor's recommendation. On August 29, 2023, the Data Collection Form was submitted to OMB. No further action is required and the finding is resolved.
2023-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program COVID-19 Coronavirus State and Local Fiscal Recovery Funds - ALN 21.027 Criteria Per the Uniform Guidance 2 CFR 200.512, management is responsible for the preparation and submission of expenditure reports detailing costs allocated to specific federal grants, for each funding agency. Condition/Cause During the audit, we noted that the client submitted the same expenditure report to two different pass through agencies for federal funding received for a capital project. One of the grants did not include a reporting template and the overall costs of the project exceeded the total of grant funds allocated to the Organization. The Organization did not have proper controls in place to approve and allocate specific costs to each of the agencies through the reporting process. Effect The report submitted to the funding agency had incorrect costs included. Questioned Costs None. Context We examined the monthly reports submitted to two of the local government funders and noted the same expenses were reported to both funding agencies. The Organization submitted revised reports to each funder which were approved prior to the end of the audit. Repeat Finding No. Recommendation The Organization should review and update policies and procedures, as needed, to ensure that appropriate procedures and controls are in place for properly reporting tracked costs to the funding agencies. This should include identifying the individual responsible for review and approval of expenditure reports to ensure that tracked costs are property reported to the funding agencies. Management Response See corrective action plan included in this report package.
2023-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program COVID-19 Coronavirus State and Local Fiscal Recovery Funds - ALN 21.027 Criteria Per the Uniform Guidance 2 CFR 200.512, management is responsible for the preparation and submission of expenditure reports detailing costs allocated to specific federal grants, for each funding agency. Condition/Cause During the audit, we noted that the client submitted the same expenditure report to two different pass through agencies for federal funding received for a capital project. One of the grants did not include a reporting template and the overall costs of the project exceeded the total of grant funds allocated to the Organization. The Organization did not have proper controls in place to approve and allocate specific costs to each of the agencies through the reporting process. Effect The report submitted to the funding agency had incorrect costs included. Questioned Costs None. Context We examined the monthly reports submitted to two of the local government funders and noted the same expenses were reported to both funding agencies. The Organization submitted revised reports to each funder which were approved prior to the end of the audit. Repeat Finding No. Recommendation The Organization should review and update policies and procedures, as needed, to ensure that appropriate procedures and controls are in place for properly reporting tracked costs to the funding agencies. This should include identifying the individual responsible for review and approval of expenditure reports to ensure that tracked costs are property reported to the funding agencies. Management Response See corrective action plan included in this report package.
2023-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program COVID-19 Coronavirus State and Local Fiscal Recovery Funds - ALN 21.027 Criteria Per the Uniform Guidance 2 CFR 200.512, management is responsible for the preparation and submission of expenditure reports detailing costs allocated to specific federal grants, for each funding agency. Condition/Cause During the audit, we noted that the client submitted the same expenditure report to two different pass through agencies for federal funding received for a capital project. One of the grants did not include a reporting template and the overall costs of the project exceeded the total of grant funds allocated to the Organization. The Organization did not have proper controls in place to approve and allocate specific costs to each of the agencies through the reporting process. Effect The report submitted to the funding agency had incorrect costs included. Questioned Costs None. Context We examined the monthly reports submitted to two of the local government funders and noted the same expenses were reported to both funding agencies. The Organization submitted revised reports to each funder which were approved prior to the end of the audit. Repeat Finding No. Recommendation The Organization should review and update policies and procedures, as needed, to ensure that appropriate procedures and controls are in place for properly reporting tracked costs to the funding agencies. This should include identifying the individual responsible for review and approval of expenditure reports to ensure that tracked costs are property reported to the funding agencies. Management Response See corrective action plan included in this report package.
Finding 2023-002 – Filing of Single Audit Reporting Package Federal Program – Section 8 Housing Assistance Payments Program Assistance Listing Number – 14.195 Significant Deficiency Category of Finding – L – Reporting Criteria - Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition - LEUTHC did not submit the Single Audit Reporting Package for the year ended December 31, 2022 within nine months after the end of the audit period (September 30, 2023). Effect - Failure to submit the required Single Audit Reporting Package timely automatically results in LEUTHC not qualifying for low-risk auditee status for the subsequent year’s single audit. Cause - The Single Audit Reporting website was updated in 2022 and 2023 and a new unique entity identification number was required to be created. LEUTHC did not file for a unique entity identification number in an appropriate time to submit the report. Recommendation - We recommend LEUTHC develop, document, and implement policies and procedures for timely submission of the Single Audit Reporting Package. Auditee’s comments and response - LEUTHC will designate an individual in management to document financial statement preparation processes to ensure timely submission of the Single Audit Reporting Package. The 2022 Single Audit Reporting Package was filed in July 2024. Status - Resolved
Finding reference number: 2023-001 CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016) Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-001: The Corporation did not file the data collection form SF-SAC for the audited financial statements for the year ended December 31, 2022, with the federal audit clearing house in a timely manner, as required by 2 CFR 200.512. Criteria: Pursuant to 2 CFR 200.512, the Corporation is required to submit data collection form SFSAC with the federal audit clearing house within nine months after the end of the audit period. Effect: The Corporation is not in compliance with federal reporting standards. Cause: Management oversight on final certification of the data collection form SF-SAC. Recommendation: Management should submit data collection form SF-SAC as required by 2 CFR 200.512. Completion date: January 4, 2024 Management's response: Agree. Management filed form SF-SAC on January 4, 2024.
Finding reference number: 2023-001 CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016) Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2023-001: The Corporation did not file the data collection form SF-SAC for the audited financial statements for the year ended December 31, 2022, with the federal audit clearing house in a timely manner, as required by 2 CFR 200.512. Criteria: Pursuant to 2 CFR 200.512, the Corporation is required to submit data collection form SFSAC with the federal audit clearing house within nine months after the end of the audit period. Effect: The Corporation is not in compliance with federal reporting standards. Cause: Management oversight on final certification of the data collection form SF-SAC. Recommendation: Management should submit data collection form SF-SAC as required by 2 CFR 200.512. Completion date: January 4, 2024 Management's response: Agree. Management filed form SF-SAC on January 4, 2024.
Federal Departments: Department of Housing and Urban Development Federal Program – All programs Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria: Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the Single Audit Reporting Package for the year ended December 31, 2022, within nine months after the end of the audit period (September 30, 2023). Cause: There were delays in completing the financial statement audit. As a result, the audit was not submitted until after the September 30, 2023 deadline. Effect: Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation: We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Auditee’s comments and response: The recommendation was adopted in 2023. The Organization is planning to submit the Reporting Package by September 30, 2024. Responsible party for corrective action: Brenda Lano-Wolke, Executive Director
Federal Departments: Department of Housing and Urban Development Federal Program – All programs Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria: Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the Single Audit Reporting Package for the year ended December 31, 2022, within nine months after the end of the audit period (September 30, 2023). Cause: There were delays in completing the financial statement audit. As a result, the audit was not submitted until after the September 30, 2023 deadline. Effect: Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation: We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Auditee’s comments and response: The recommendation was adopted in 2023. The Organization is planning to submit the Reporting Package by September 30, 2024. Responsible party for corrective action: Brenda Lano-Wolke, Executive Director
Federal Departments: Department of Housing and Urban Development Federal Program – All programs Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria: Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the Single Audit Reporting Package for the year ended December 31, 2022, within nine months after the end of the audit period (September 30, 2023). Cause: There were delays in completing the financial statement audit. As a result, the audit was not submitted until after the September 30, 2023 deadline. Effect: Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation: We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Auditee’s comments and response: The recommendation was adopted in 2023. The Organization is planning to submit the Reporting Package by September 30, 2024. Responsible party for corrective action: Brenda Lano-Wolke, Executive Director
Federal Departments: Department of Housing and Urban Development Federal Program – All programs Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria: Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the Single Audit Reporting Package for the year ended December 31, 2022, within nine months after the end of the audit period (September 30, 2023). Cause: There were delays in completing the financial statement audit. As a result, the audit was not submitted until after the September 30, 2023 deadline. Effect: Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation: We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Auditee’s comments and response: The recommendation was adopted in 2023. The Organization is planning to submit the Reporting Package by September 30, 2024. Responsible party for corrective action: Brenda Lano-Wolke, Executive Director
Federal Departments: Department of Housing and Urban Development Federal Program – All programs Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria: Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the Single Audit Reporting Package for the year ended December 31, 2022, within nine months after the end of the audit period (September 30, 2023). Cause: There were delays in completing the financial statement audit. As a result, the audit was not submitted until after the September 30, 2023 deadline. Effect: Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation: We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Auditee’s comments and response: The recommendation was adopted in 2023. The Organization is planning to submit the Reporting Package by September 30, 2024. Responsible party for corrective action: Brenda Lano-Wolke, Executive Director
Federal Departments: Department of Housing and Urban Development Federal Program – All programs Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria: Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the Single Audit Reporting Package for the year ended December 31, 2022, within nine months after the end of the audit period (September 30, 2023). Cause: There were delays in completing the financial statement audit. As a result, the audit was not submitted until after the September 30, 2023 deadline. Effect: Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation: We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Auditee’s comments and response: The recommendation was adopted in 2023. The Organization is planning to submit the Reporting Package by September 30, 2024. Responsible party for corrective action: Brenda Lano-Wolke, Executive Director
Federal Departments: Department of Housing and Urban Development Federal Program – All programs Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria: Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the Single Audit Reporting Package for the year ended December 31, 2022, within nine months after the end of the audit period (September 30, 2023). Cause: There were delays in completing the financial statement audit. As a result, the audit was not submitted until after the September 30, 2023 deadline. Effect: Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation: We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Auditee’s comments and response: The recommendation was adopted in 2023. The Organization is planning to submit the Reporting Package by September 30, 2024. Responsible party for corrective action: Brenda Lano-Wolke, Executive Director
Federal Departments: Department of Housing and Urban Development Federal Program – All programs Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria: Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the Single Audit Reporting Package for the year ended December 31, 2022, within nine months after the end of the audit period (September 30, 2023). Cause: There were delays in completing the financial statement audit. As a result, the audit was not submitted until after the September 30, 2023 deadline. Effect: Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation: We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Auditee’s comments and response: The recommendation was adopted in 2023. The Organization is planning to submit the Reporting Package by September 30, 2024. Responsible party for corrective action: Brenda Lano-Wolke, Executive Director
Federal Departments: Department of Housing and Urban Development Federal Program – All programs Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria: Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the Single Audit Reporting Package for the year ended December 31, 2022, within nine months after the end of the audit period (September 30, 2023). Cause: There were delays in completing the financial statement audit. As a result, the audit was not submitted until after the September 30, 2023 deadline. Effect: Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation: We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Auditee’s comments and response: The recommendation was adopted in 2023. The Organization is planning to submit the Reporting Package by September 30, 2024. Responsible party for corrective action: Brenda Lano-Wolke, Executive Director
Federal Departments: Department of Housing and Urban Development Federal Program – All programs Significant Deficiency & Noncompliance Category of Finding – Reporting Criteria: Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the Single Audit Reporting Package for the year ended December 31, 2022, within nine months after the end of the audit period (September 30, 2023). Cause: There were delays in completing the financial statement audit. As a result, the audit was not submitted until after the September 30, 2023 deadline. Effect: Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation: We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Auditee’s comments and response: The recommendation was adopted in 2023. The Organization is planning to submit the Reporting Package by September 30, 2024. Responsible party for corrective action: Brenda Lano-Wolke, Executive Director
2023-001: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package 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 The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2022-002
2023-001: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package 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 The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2022-002
2023-001: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package 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 The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2022-002
Category: Internal control / Compliance Condition: The December 31, 2022 Data Collection Form and Single Audit reporting package were not submitted within the established due date. Criteria: 2 CFR section 200.512 (a)(1) establishes that the audit must be completed and the reporting required by paragraph (b) (1) of this section 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. Unless restricted by Federal law or regulation, the auditee must make report copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. Cause: Information to complete the Single Audit procedures was not available within the required period. Effects: Data Collection Form and Single Audit report was not submitted in a timely manner as required by the Uniform Guidance. Questioned Costs: None Recommendations: Data Collection Form and Single Audit package shall be submitted by the established due date. Management Response: This finding was identified for the submission of the 2021 Data Collection Form, and by the time the Organization established procedures to ensure that the Data Collection Form and Single Audit report are submitted within the established due date, the due date of the 2022 audit already passed. However, the procedures will be in place for the next year’s audit to avoid the recurrence of this finding.
Category: Internal control / Compliance Condition: The December 31, 2022 Data Collection Form and Single Audit reporting package were not submitted within the established due date. Criteria: 2 CFR section 200.512 (a)(1) establishes that the audit must be completed and the reporting required by paragraph (b) (1) of this section 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. Unless restricted by Federal law or regulation, the auditee must make report copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. Cause: Information to complete the Single Audit procedures was not available within the required period. Effects: Data Collection Form and Single Audit report was not submitted in a timely manner as required by the Uniform Guidance. Questioned Costs: None Recommendations: Data Collection Form and Single Audit package shall be submitted by the established due date. Management Response: This finding was identified for the submission of the 2021 Data Collection Form, and by the time the Organization established procedures to ensure that the Data Collection Form and Single Audit report are submitted within the established due date, the due date of the 2022 audit already passed. However, the procedures will be in place for the next year’s audit to avoid the recurrence of this finding.
Category: Internal control / Compliance Condition: The December 31, 2022 Data Collection Form and Single Audit reporting package were not submitted within the established due date. Criteria: 2 CFR section 200.512 (a)(1) establishes that the audit must be completed and the reporting required by paragraph (b) (1) of this section 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. Unless restricted by Federal law or regulation, the auditee must make report copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. Cause: Information to complete the Single Audit procedures was not available within the required period. Effects: Data Collection Form and Single Audit report was not submitted in a timely manner as required by the Uniform Guidance. Questioned Costs: None Recommendations: Data Collection Form and Single Audit package shall be submitted by the established due date. Management Response: This finding was identified for the submission of the 2021 Data Collection Form, and by the time the Organization established procedures to ensure that the Data Collection Form and Single Audit report are submitted within the established due date, the due date of the 2022 audit already passed. However, the procedures will be in place for the next year’s audit to avoid the recurrence of this finding.
Category: Internal control / Compliance Condition: The December 31, 2022 Data Collection Form and Single Audit reporting package were not submitted within the established due date. Criteria: 2 CFR section 200.512 (a)(1) establishes that the audit must be completed and the reporting required by paragraph (b) (1) of this section 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. Unless restricted by Federal law or regulation, the auditee must make report copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. Cause: Information to complete the Single Audit procedures was not available within the required period. Effects: Data Collection Form and Single Audit report was not submitted in a timely manner as required by the Uniform Guidance. Questioned Costs: None Recommendations: Data Collection Form and Single Audit package shall be submitted by the established due date. Management Response: This finding was identified for the submission of the 2021 Data Collection Form, and by the time the Organization established procedures to ensure that the Data Collection Form and Single Audit report are submitted within the established due date, the due date of the 2022 audit already passed. However, the procedures will be in place for the next year’s audit to avoid the recurrence of this finding.
Category: Internal control / Compliance Condition: The December 31, 2022 Data Collection Form and Single Audit reporting package were not submitted within the established due date. Criteria: 2 CFR section 200.512 (a)(1) establishes that the audit must be completed and the reporting required by paragraph (b) (1) of this section 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. Unless restricted by Federal law or regulation, the auditee must make report copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. Cause: Information to complete the Single Audit procedures was not available within the required period. Effects: Data Collection Form and Single Audit report was not submitted in a timely manner as required by the Uniform Guidance. Questioned Costs: None Recommendations: Data Collection Form and Single Audit package shall be submitted by the established due date. Management Response: This finding was identified for the submission of the 2021 Data Collection Form, and by the time the Organization established procedures to ensure that the Data Collection Form and Single Audit report are submitted within the established due date, the due date of the 2022 audit already passed. However, the procedures will be in place for the next year’s audit to avoid the recurrence of this finding.
14.157 - Supportive Housing for the Elderly (Section 202) U.S. Department of Housing and Urban DevelopmentFinding 2023-001 – Prior Year Reporting Package and Data Collection Not Filed Timely Criteria: In accordance with 2 CFR Section 200.512(a)(1), the audit must be completed and the data collection form reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Condition: The data collection form reporting package was filed late for the year ended December 31, 2022. Questioned Costs: $0 Effect: The effect is that the project is not considered a “Low Risk Auditee” for the years ending December 31, 2023 and December 31, 2024. This designation will require the auditor to audit at least 40% of the project’s programs as major programs until such time that the project may be considered a “Low Risk Auditee” again. Cause: The project did not apply to receive the unique entity identifier for the Federal Audit Clearinghouse in time to complete the data collection form by the due date of September 30, 2023. The form was submitted on October 5, 2023. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. View of responsible official: Westward Development, Inc. agrees with the finding and the auditor’s recommendations have been adopted.
Condition Found: The reporting package and data collection form for the 2022 audit was not filed by the September 30, 2023 deadline. Effect: Harambee was in violation of 2 CFR Section 200.512(a). Cause: Management was not aware of the need for a Unique Entity Identifier (UEI) to file the reporting package and data collection form with the FAC which uses the UEI for all single audit submissions. There was no one designated as a responsible officer to obtain a UEI from SAM.gov (System for Award Management). Criteria: Uniform Guidance and 2023 Compliance Supplement, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse by the earlier of 30 calendar days after the reports are received from the auditor, or nine months after the end of the audit period. Recommendation: Enforce the oversight control over financial reporting to ensure timely submission of the reporting package and data collection form to the FAC. View of Responsible Officials: Management understands the problem, accepts the recommendations, and will undertake the action steps detailed in the Corrective Action Plan dated September 25, 2024.
Condition Found: The reporting package and data collection form for the 2022 audit was not filed by the September 30, 2023 deadline. Effect: Harambee was in violation of 2 CFR Section 200.512(a). Cause: Management was not aware of the need for a Unique Entity Identifier (UEI) to file the reporting package and data collection form with the FAC which uses the UEI for all single audit submissions. There was no one designated as a responsible officer to obtain a UEI from SAM.gov (System for Award Management). Criteria: Uniform Guidance and 2023 Compliance Supplement, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse by the earlier of 30 calendar days after the reports are received from the auditor, or nine months after the end of the audit period. Recommendation: Enforce the oversight control over financial reporting to ensure timely submission of the reporting package and data collection form to the FAC. View of Responsible Officials: Management understands the problem, accepts the recommendations, and will undertake the action steps detailed in the Corrective Action Plan dated September 25, 2024.
Condition Found: The reporting package and data collection form for the 2022 audit was not filed by the September 30, 2023 deadline. Effect: Harambee was in violation of 2 CFR Section 200.512(a). Cause: Management was not aware of the need for a Unique Entity Identifier (UEI) to file the reporting package and data collection form with the FAC which uses the UEI for all single audit submissions. There was no one designated as a responsible officer to obtain a UEI from SAM.gov (System for Award Management). Criteria: Uniform Guidance and 2023 Compliance Supplement, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse by the earlier of 30 calendar days after the reports are received from the auditor, or nine months after the end of the audit period. Recommendation: Enforce the oversight control over financial reporting to ensure timely submission of the reporting package and data collection form to the FAC. View of Responsible Officials: Management understands the problem, accepts the recommendations, and will undertake the action steps detailed in the Corrective Action Plan dated September 25, 2024.
Finding 2023-004 All Assistance Listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 Finding: The Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that 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. Condition: The Single Audit package for the Authority’s year ended December 31, 2023 should have been submitted to the Federal Audit Clearinghouse by September 30, 2024. Cause: The audit was not completed until October 2024 due to resource constraints at the Authority as a result of personnel turnover and a cyber incident in 2024. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None Context: The December 31, 2023 Single Audit package. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the Authority file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.
Finding 2023-004 All Assistance Listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 Finding: The Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that 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. Condition: The Single Audit package for the Authority’s year ended December 31, 2023 should have been submitted to the Federal Audit Clearinghouse by September 30, 2024. Cause: The audit was not completed until October 2024 due to resource constraints at the Authority as a result of personnel turnover and a cyber incident in 2024. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None Context: The December 31, 2023 Single Audit package. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the Authority file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.
Finding 2023-004 All Assistance Listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 Finding: The Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that 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. Condition: The Single Audit package for the Authority’s year ended December 31, 2023 should have been submitted to the Federal Audit Clearinghouse by September 30, 2024. Cause: The audit was not completed until October 2024 due to resource constraints at the Authority as a result of personnel turnover and a cyber incident in 2024. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None Context: The December 31, 2023 Single Audit package. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the Authority file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.
Finding 2023-004 All Assistance Listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 Finding: The Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that 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. Condition: The Single Audit package for the Authority’s year ended December 31, 2023 should have been submitted to the Federal Audit Clearinghouse by September 30, 2024. Cause: The audit was not completed until October 2024 due to resource constraints at the Authority as a result of personnel turnover and a cyber incident in 2024. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None Context: The December 31, 2023 Single Audit package. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the Authority file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.
Finding 2023-004 All Assistance Listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 Finding: The Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that 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. Condition: The Single Audit package for the Authority’s year ended December 31, 2023 should have been submitted to the Federal Audit Clearinghouse by September 30, 2024. Cause: The audit was not completed until October 2024 due to resource constraints at the Authority as a result of personnel turnover and a cyber incident in 2024. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None Context: The December 31, 2023 Single Audit package. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the Authority file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.
Finding 2023-004 All Assistance Listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 Finding: The Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that 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. Condition: The Single Audit package for the Authority’s year ended December 31, 2023 should have been submitted to the Federal Audit Clearinghouse by September 30, 2024. Cause: The audit was not completed until October 2024 due to resource constraints at the Authority as a result of personnel turnover and a cyber incident in 2024. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None Context: The December 31, 2023 Single Audit package. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the Authority file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.
Finding 2023-004 All Assistance Listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 Finding: The Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that 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. Condition: The Single Audit package for the Authority’s year ended December 31, 2023 should have been submitted to the Federal Audit Clearinghouse by September 30, 2024. Cause: The audit was not completed until October 2024 due to resource constraints at the Authority as a result of personnel turnover and a cyber incident in 2024. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None Context: The December 31, 2023 Single Audit package. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the Authority file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.
Finding 2023-004 All Assistance Listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 Finding: The Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that 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. Condition: The Single Audit package for the Authority’s year ended December 31, 2023 should have been submitted to the Federal Audit Clearinghouse by September 30, 2024. Cause: The audit was not completed until October 2024 due to resource constraints at the Authority as a result of personnel turnover and a cyber incident in 2024. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None Context: The December 31, 2023 Single Audit package. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the Authority file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.
Finding 2023-004 All Assistance Listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 Finding: The Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that 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. Condition: The Single Audit package for the Authority’s year ended December 31, 2023 should have been submitted to the Federal Audit Clearinghouse by September 30, 2024. Cause: The audit was not completed until October 2024 due to resource constraints at the Authority as a result of personnel turnover and a cyber incident in 2024. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None Context: The December 31, 2023 Single Audit package. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the Authority file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.
Finding 2023-004 All Assistance Listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 Finding: The Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that 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. Condition: The Single Audit package for the Authority’s year ended December 31, 2023 should have been submitted to the Federal Audit Clearinghouse by September 30, 2024. Cause: The audit was not completed until October 2024 due to resource constraints at the Authority as a result of personnel turnover and a cyber incident in 2024. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None Context: The December 31, 2023 Single Audit package. Identification as a repeat finding, if applicable: Not applicable. Recommendation: We recommend the Authority file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.
Finding 2023-002 Single Audit Report Filed Late Condition: The audited financial statements were not submitted to the Federal Audit Clearinghouse by the due date of September 30, 2024. Questioned Costs: None Criteria: In accordance with 2 CFR Section 200.512, an entity expending more than $750,000 of federal funds within a fiscal year must submit the data collection form and reporting package by a due date that is the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the year end of the audit period. Cause: The late filing of the 2022 audit report led to a delayed start for the 2023 audit. As a result, the subsequent audit processes for the year ended December 31, 2023, were impacted, causing the filing for that audit to also be late. Effect: The Commission was not in compliance with Uniform Guidance, which could lead to sanctions by the funding agencies. Recommendation: We recommend the Commission establish a timely process to ensure completion of the audit by September 30 of each year. Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.
Finding 2023-001: Internal Control over Compliance Type of finding: Internal Control (material weakness) and Compliance (noncompliance) Criteria: The Report submission portion of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements (Subpart F: 2 CFR 200.512) requires that an auditee to submit the Single Audit reporting package and data collection form earlier of nine months after the end of the audit period or 30 calendar days after the Organization received the Auditors’ report. Condition: The Organization did not submit the Single Audit reporting package to the Federal Audit Clearinghouse and data collection form by the due date of September 30, 2024. Cause: The Organization does not have a system of internal control in place to perform year-end financial close and reporting in a timely manner. Effect: The Organization is not in compliance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements (Subpart F: 2 CFR 200.512). Recommendation: The Organization should strengthen its internal controls over year-end financial close and reporting with adopted policies and procedures to ensure compliance with the Report submission portion of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements section.
Data Collection Form Statement of Condition: The Single Audit was not filed within 9 months after year end as required by the Federal Audit Clearing House. Criteria: 2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearing House the earlier of 30 calendar days after the reports are received from the auditor or 9 months after the end of the reporting period. Therefore, the December 31, 2023 reporting package deadline was September 30, 2024. Statement of Cause: The Organization had some delays in providing financial information relating to new standards implemented during the year ended December 31, 2023. Statement of Effect: The Organization was not in compliance with federal guidelines. Questioned Costs: None. Perspective Information: As part of the audit process, compliance with federal guidelines is reviewed, including timely submission of the reporting package to the Federal Audit Clearing House. Identification of Repeat Finding: No Recommendation: We recommend that the Organization continue to look over new standard information when applicable and in a timely manner, to ensure that there is sufficient time to implement in time for the audit. Views of responsible officials and planned corrective actions: Brightside Up, Inc. will stay updated with any new standards and implement necessary practices to stay in compliance.