Finding 1090174 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-12-10

AI Summary

  • Core Issue: The Organization is struggling to deliver timely financial reports due to increased workload, staffing shortages, and illness.
  • Impacted Requirements: Timely financial reporting is essential for effective oversight and compliance with grant budgets, risking over-expenditure and disallowed expenses.
  • Recommended Follow-Up: Implement measures to improve the timeliness of financial reporting to enhance oversight and meet funding agency expectations.

Finding Text

Statement of condition: The Organization has been challenged in recent years to provide for the timely reporting of financial activities to its Board of Directors and management. More recently, as a result of the increases to the workload, staffing challenges, and illness, the timeliness of the financial reporting has further deteriorated. Criteria: Timely financial reporting is a critical internal control feature for the Board and management to provide for proper oversight of program operations. Further, many of the Organization’s grants and contracts have accountability to an approved budget from the funding source. As management’s ability to monitor actual expenditures to date related to particular funding sources is limited, there is significant risk of over expenditure and disallowance of expense. Cause of condition: Financial and program staff medical leaves and staffing challenges. Effect of condition and context: This may allow for misstatement of operating results and possible disallowance of expenditures under certain grants and contracts because of an inability to substantiate the appropriateness and allowability of the expenditure. The inability to provide timely financial reporting may also unfavorably impact the funding agency’s performance metrics when assessing the Organization’s capacity to deliver competitive grants. Recommendation: We strongly suggest the Organization provide for more timely financial reporting.

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 513727 2023-001
    Significant Deficiency
  • 513728 2023-001
    Significant Deficiency
  • 513729 2023-001
    Significant Deficiency
  • 513730 2023-001
    Significant Deficiency
  • 513731 2023-001
    Significant Deficiency
  • 513732 2023-001
    Significant Deficiency
  • 513733 2023-001
    Significant Deficiency
  • 513734 2023-001
    Significant Deficiency
  • 513735 2023-001
    Significant Deficiency
  • 513736 2023-001
    Significant Deficiency
  • 513737 2023-001
    Significant Deficiency
  • 1090169 2023-001
    Significant Deficiency
  • 1090170 2023-001
    Significant Deficiency
  • 1090171 2023-001
    Significant Deficiency
  • 1090172 2023-001
    Significant Deficiency
  • 1090173 2023-001
    Significant Deficiency
  • 1090175 2023-001
    Significant Deficiency
  • 1090176 2023-001
    Significant Deficiency
  • 1090177 2023-001
    Significant Deficiency
  • 1090178 2023-001
    Significant Deficiency
  • 1090179 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $21.23M
93.575 Child Care and Development Block Grant $15.38M
93.568 Low-Income Home Energy Assistance $14.37M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $8.39M
93.600 Head Start $3.97M
93.569 Community Services Block Grant $678,755
17.274 Youthbuild $357,698
10.555 National School Lunch Program $195,986
93.994 Maternal and Child Health Services Block Grant to the States $135,426
10.569 Emergency Food Assistance Program (food Commodities) $84,489
14.881 Moving to Work Demonstration Program $83,667