Finding 1161622 (2023-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-10-29

AI Summary

  • Core Issue: The organization failed to complete and submit the single audit and data collection package on time for the years ending September 30, 2023, and September 30, 2024.
  • Impacted Requirements: This delay violates the Uniform Guidance requirement to submit audits within 9 months after the fiscal year end.
  • Recommended Follow-Up: Improve financial reporting processes to ensure timely completion and submission of audits to meet compliance standards.

Finding Text

Criteria: As required under the Uniform Guidance, the single audit and data collection reporting package are required to be submitted to the Federal Audit Clearinghouse within 9 months after the end of the audit period. Condition: For the years ended September 30, 2022, September 30, 2023, and September 30, 2024 the financial statement audit and single audit were not scheduled or completed in a timely manner. As a result, the single audit and data collection reporting package were not completed or submitted to Federal Audit Clearinghouse in accordance with the requirements for Reporting under the Uniform Guidance.Cause: The commencement of the 2022 and 2023 audit of the Organization was delayed primarily due to budgetary constraints, difficulty in identifying and engaging an audit firm capable of completing the single audit and due to the fact that the 2021 audit and 2022 audit were required to be completed before the 2023 audit could commence. The audit for 2023 was not completed and issued until November 20, 2024, As a result, the audit firm was not engaged until December 19, 2024 to complete the financial statement and single audit for the year ended September 30, 2023. The Organization was not fully prepared for the audit until mid-April 2024, and due to other previously scheduled client engagements and other scheduling difficulties, the audit firm was unable to fully complete work on the 2023 audit until October 2025. Effect: The financial statements and single audit were not completed in a timely manner and AIRS is not in compliance with the required timing of submission of the single audit and data collection package to the Federal Audit Clearinghouse as required under the Uniform Guidance for years ended September 30, 2023 and September 30, 2024. Questioned Costs: None reported Repeat Finding from Prior Year: Yes. Recommendation: AIRS should improve its financial reporting process and procedures to ensure that it completes financial statement and single audits in a timely and efficient manner and ensure that its financial statements, single audit and data collection package are completed and properly submitted to the Federal Audit Clearinghouse within the required 9 months after fiscal year end as required by the Uniform Guidance.

Corrective Action Plan

AIRS will ensure completion in an efficient and timely manner the submission of the Audit within the required 9 months after fiscal year end as required by the Uniform Guidance and will work with the audit firm to develop a schedule to ensure that future audits and single audits are completed timely, and that data collection reporting package is submitted to the Federal Audit Clearinghouse by the due date for the year ended September 30, 2025, and future years.

Categories

Reporting

Other Findings in this Audit

  • 1161623 2023-005
    Material Weakness Repeat
  • 1161624 2023-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.567 REFUGEE AND ENTRANT ASSISTANCE VOLUNTARY AGENCY PROGRAMS $895,814
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $705,875
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $593,251
93.576 REFUGEE AND ENTRANT ASSISTANCE DISCRETIONARY GRANTS $341,963
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $27,494