Finding Text
Finding 2024-001: Reporting - Late Submission
Information on the Federal Programs: Assistance Listing Number 21.027-Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury and Assistance Listing Number 14.251-Economic Development Initiative, Community Project Funding, and Misc. Grants, U.S. Department of Housing and Urban Development
Compliance Requirements: Reporting
Type of Finding: Noncompliance
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance or 2 CFR Part 200), Subpart F , requires single audit reporting to be submitted to the Federal Audit Clearinghouse within 30 days of receiving the completed reports or nine months after the entity's fiscal year end, whichever comes first.
Condition: The June 30, 2024 and 2023 single audit reports were not submitted to the Federal Audit Clearinghouse on a timely basis.
Cause: Insufficient staffing and turnover in key management roles caused delays to the start of the audits.
Effect: Failure to submit the necessary audit reports on a timely basis can lead to delayed or suspended funding
and Organization will not be classified as a low-risk auditee in future years.
Questioned Costs: None
Context: The Organization has experienced significant growth over the past two years that has lead to difficulties in retaining staff. The noncompliance is isolated to June 30, 2024 and 2023 as management has complied with other reporting criteria on its federal awards.
Recommendation: Management should contract with experienced consultants to support timely reporting of all federal awards when Organization personnel are unable to meet the criteria.
Responsible Official's Response: Management of La Raza Services, Inc. dba Servicios de La Raza, Inc. concurs with the audit finding. In January 2025, management contracted with experienced consultants to support timely reporting of federal grants in the future.