Finding 1161845 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-11-04

AI Summary

  • Core Issue: MAVI missed the deadline for submitting its Single Audit Report due to staff turnover and a transition to a new accounting system.
  • Impacted Requirements: Compliance with OMB Uniform Guidance was not met, affecting timely reporting and internal control functions.
  • Recommended Follow-Up: Ensure ongoing training for accounting staff on the MIP system and monitor compliance with audit submission deadlines.

Finding Text

REPORTABLE CONDITION Compliance Finding Reporting Requirements: Movimiento Alcance Vida Independiente, Inc. (MAVI) did not comply with the due date for its Single Audit Report submission to the Federal Audit Clearinghouse (FAC), as required by the Office of Management and Budget (OMB) Uniform Guidance. Questioned Cost: None Cause: MAVI experienced a turnover of its accounting personnel, key accounting officer and at its top level management during the year. At the same time MAVI had switched its accounting system from SAGE to MIP, and neither exiting nor new accounting staff were knowledgeable with the system, delaying accounting process. Effect: Reporting procedures to complete internal control functions were not made on a timely basis, including bank reconciliations, general accounting trial balances, financial statements, budgeting reporting, and compliance with Single Audit submission to the Federal Audit Clearinghouse. Recommendation: Provide management and accounting personnel with additional training related to the new implemented MIP accounting system. Institution Comments: MAVI’s management acknowledges the reported finding and has taken corrective measures to ensure future compliance with Federal Audit requirements. Accounting staff changes have been addressed, and additional training on the newly implemented MIP system is being provided to strengthen internal controls and improve the preparation of financial reports. Both the new accounting staff and executive director participated in trainings offered by MIP contractors on April 4, 2025. In addition, MAVI has contacted with local specialized contractors in PR, JLB Group, who can provide technical assistance in spanish, should further needs arise. The existing accounting staff member is now familiarized with the system, so processes are proceeding in a timely fashion. Any new hired staff will be appropriately trained

Corrective Action Plan

Subject: Corrective Action Plan MAVI Finding Reference: Federal Award Findings and Questioned Costs - Reporting Requirements Audit Period: Year Ended September 30, 2024 This Corrective Action Plan has been developed by Movimiento para el Alcance de Vida Independiente (MAVI) in response to the findings identified in the Single Audit Report for the fiscal year ended September 30, 2024. The plan outlines specific measures that the organization is implementing to address the noted deficiencies related to federal reporting requirements, particularly the late submission of the audit report to the Federal Audit Clearinghouse (FAC). MAVI is committed to maintaining full compliance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as well as strengthening its internal controls and financial reporting practices. This plan includes detailed corrective actions, responsible personnel, completion timelines, and current status updates to ensure accountability and transparency. The goal of this corrective action plan is to prevent future occurrences, enhance internal processes, and ensure timely and accurate reporting of all federally funded programs managed by the organization.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1161839 2024-001
    Material Weakness Repeat
  • 1161840 2024-001
    Material Weakness Repeat
  • 1161841 2024-001
    Material Weakness Repeat
  • 1161842 2024-001
    Material Weakness Repeat
  • 1161843 2024-001
    Material Weakness Repeat
  • 1161844 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.432 ACL CENTERS FOR INDEPENDENT LIVING $934,439
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $293,353
93.630 DEVELOPMENTAL DISABILITIES BASIC SUPPORT AND ADVOCACY GRANTS $263,759
93.369 ACL INDEPENDENT LIVING STATE GRANTS $223,700
96.008 SOCIAL SECURITY - WORK INCENTIVES PLANNING AND ASSISTANCE PROGRAM $188,982
93.433 ACL NATIONAL INSTITUTE ON DISABILITY, INDEPENDENT LIVING, AND REHABILITATION RESEARCH $66,462
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $35,890