Finding 10967 (2023-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-01-31

AI Summary

  • Core Issue: There is a significant weakness in internal controls over compliance for the Special Programs for the Aging, leading to missed quarterly report filings.
  • Impacted Requirements: Internal controls must ensure timely and accurate filing of reports as required by the funding agency's contract.
  • Recommended Follow-Up: Management should assess and strengthen internal controls related to major federal programs to ensure compliance with reporting obligations.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Special Programs for the Aging Assistance Listing Number: 93.048 Federal Award Identification Number and Year: 90MPPG009 Award Period: June 1, 2022 – May 31, 2023 Type of Finding: Material Weakness in internal control over compliance and compliance Condition: For the fiscal year ended June 30, 2023, the organization did comply with the quarterly report filing requirements as stated per the contract with the funding agency. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that report filing is performed timely and accurately as stipulated per the contract. Context: During the course of our audit, we were not provided with quarterly SF-425 reports for the purposes of compliance testing. We were later informed by management that these reports were not filed with the funding agency. Although we understand many of these matters were the result of the transition in the finance department, this matter highlighted insufficient internal controls over the major federal program. Effect: The lack of controls in place over major federal programs increases the risk of noncompliance not being detected and corrected on a timely basis. Cause: For the year ended June 30, 2023, management did not have controls in place to properly and timely comply with the contract requirement of the major federal program. Recommendation: We recommend management evaluate their internal controls surrounding the major federal programs to ensure compliance with the reporting requirements of their grants. Views of responsible officials and planned corrective actions: See accompanying Corrective Action Plan for the year ended June 30, 2023.

Corrective Action Plan

Center for Advocacy for the Rights and Interests of the Elderly (CARIE) respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: Year ending June 30, 2023 The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—SINGLE AUDIT MATERIAL WEAKNESS 2023‐001 Internal Control over Compliance and Compliance (Reporting) Recommendation: We recommend management evaluate their internal controls surrounding the major federal programs to ensure compliance with the reporting requirements of their grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will create a reporting calendar with due dates to be reviewed monthly. The Finance Manager will prepare the reports and the Executive Director will review the reports prior to submission. Names of contact responsible for corrective action: Whitney Lingle, Executive Director. Planned completion date for corrective action plan: June 30, 2024. If the Department of Health and Human Services has questions regarding this plan, please call Whitney Lingle at (267) 546‐3434.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 587409 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $874,854
16.575 Crime Victim Assistance $456,983
93.324 State Health Insurance Assistance Program $94,910
93.071 Medicare Enrollment Assistance Program $43,855
93.569 Community Services Block Grant $9,278
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $5,653