Finding 1093483 (2023-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-12-27
Audit: 334930
Organization: Methodist Services (PA)
Auditor: Eisneramper LLP

AI Summary

  • Core Issue: The Organization failed to submit required financial and performance reports on time, violating federal reporting deadlines.
  • Impacted Requirements: Timely submission is essential for compliance with federal regulations, affecting transparency and monitoring of grant activities.
  • Recommended Follow-Up: Strengthen internal controls, implement a centralized tracking system for deadlines, and assign dedicated personnel to ensure timely submissions.

Finding Text

Finding #2023-004 – Material Weakness – Reporting 93.558 Temporary Assistance for Needy Families – Out of School Time Program 93.600 Head Start Untimely Submission of Required Reports Criteria Under the Uniform Guidance (2 CFR Part 200), nonfederal entities are required to submit accurate and timely financial, performance, and other reports to federal awarding agencies as specified by the terms of the federal awards. Timely submission of these reports is essential for ensuring transparency, accountability, and proper monitoring of grant activities. Condition The Organization is required to submit quarterly financial and performance reports. The total population was eight reports and of those four were selected for testing. These financial and performance reports were not submitted to the granting agencies within the deadlines established by the terms and conditions of the federal awards. Cause The failure to submit reports on time may have been due to insufficient internal controls or inadequate procedures for tracking reporting deadlines. It may also indicate a lack of staffing resources or ineffective communication between departments responsible for preparing and submitting the reports. Effects The untimely submission of required reports can hinder the granting agencies’ ability to monitor the progress and financial management of federal awards. This increases the risk of noncompliance with federal regulations and may result in penalties, suspension of funding, or negative impacts on future funding opportunities. Questions Costs None. Perspective Four reports were selected for testing out of eight. The four reports were filed between two to six weeks late. As a result this audit finding is systemic. Statistical Sample The sample was a statistically valid sample. Repeat Finding This audit finding is not a repeat finding. Recommendation We recommend that the Organization strengthen its internal controls to ensure that all required reports are submitted to granting agencies on time. Management should implement a centralized system to track reporting deadlines and designate responsible personnel to monitor and ensure compliance with these deadlines. Additionally, periodic reviews of the reporting process should be conducted to identify any potential issues and address them proactively. Views of Responsible Officials Management agrees with the finding. The Organization agrees with this finding and has begun implementing corrective actions to ensure timely submission of required reports. The Organization is in the process of developing a reporting schedule and assigning dedicated personnel to monitor deadlines.

Categories

Reporting Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 517029 2023-001
    Material Weakness
  • 517030 2023-001
    Material Weakness
  • 517031 2023-001
    Material Weakness
  • 517032 2023-001
    Material Weakness
  • 517033 2023-001
    Material Weakness
  • 517034 2023-001
    Material Weakness
  • 517035 2023-001
    Material Weakness
  • 517036 2023-001
    Material Weakness
  • 517037 2023-002
    Material Weakness
  • 517038 2023-002
    Material Weakness
  • 517039 2023-003
    Significant Deficiency
  • 517040 2023-003
    Significant Deficiency
  • 517041 2023-004
    Material Weakness
  • 517042 2023-004
    Material Weakness
  • 1093471 2023-001
    Material Weakness
  • 1093472 2023-001
    Material Weakness
  • 1093473 2023-001
    Material Weakness
  • 1093474 2023-001
    Material Weakness
  • 1093475 2023-001
    Material Weakness
  • 1093476 2023-001
    Material Weakness
  • 1093477 2023-001
    Material Weakness
  • 1093478 2023-001
    Material Weakness
  • 1093479 2023-002
    Material Weakness
  • 1093480 2023-002
    Material Weakness
  • 1093481 2023-003
    Significant Deficiency
  • 1093482 2023-003
    Significant Deficiency
  • 1093484 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $747,818
93.600 Head Start $528,300
93.667 Social Services Block Grant $477,258
14.195 Project-Based Rental Assistance (pbra) $209,101
10.558 Child and Adult Care Food Program $87,257
14.267 Continuum of Care Program $52,641