Finding 1162700 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-11-19
Audit: 372336
Organization: Lincoln Hall (NY)
Auditor: BDO USA PC

AI Summary

  • Core Issue: Lincoln Hall failed to submit multiple required reports on time, including quarterly and annual financial reports.
  • Impacted Requirements: Non-compliance with Uniform Guidance reporting deadlines, specifically §200.328, §200.329, and §200.512.
  • Recommended Follow-Up: Management should ensure timely submission of all reports as mandated by federal guidelines to avoid repeat findings.

Finding Text

Finding Number: 2024-004 Reporting (Material Weakness) Information on Federal Program: U.S. Department of Health and Human Services ALN Number: 93.676 ALN Name: Unaccompanied Children Program Contract Period: July 1, 2023 through June 30, 2024 Criteria: In accordance with the Uniform Guidance §200.328 and §200.329, providers must submit Federal Financial Report (SF-425) and Program Progress Reports (SF-PPR) as required by the Federal Award, for which the instructions state that quarterly and semi-annual interim reports shall be submitted no later than 30 days after the end of each reporting period, and annual reports shall be submitted no later than 90 days after the end of each reporting period. Furthermore, all fields in the SF-425 form must be filled out appropriately. Additionally, in accordance with the Uniform Guidance §200.512, the Uniform Guidance report needs to be filed with the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the audit report or nine months after the end of the audit period. Condition: During our audit, we noted that one SF-PPR quarterly report, two SF-425 quarterly reports, the annual federal financial report and the Uniform Guidance report were not submitted on time. Also, one SF-PRR quarterly report tested was noted to have not been submitted. Questioned Costs: None noted. Context: This is a condition identified per review of Lincoln Hall’s compliance with reporting requirements. Effect or Potential Effect: We were able to observe and conclude that Lincoln Hall did not comply with certain quarterly and annual reporting requirements. Repeat Finding: This is a repeated finding from prior year. See Finding No. 2023-004 on the Summary Schedule of Prior Audit Findings. Cause: Timing and interpretation of the filing requirements were not met due to the turnover at Lincoln Hall. Recommendation: Management should submit reports timely as required by the Federal Award and the Uniform Guidance. Views of Responsible Officials: Lincoln Hall agrees with the finding. Lincoln Hall continues to take steps to improve this process. See Lincoln Hall’s further response to this finding as described in the accompanying management’s planned corrective actions, Appendix A.

Corrective Action Plan

Finding Number: 2024-004 Reporting (Material Weakness) Programs: Unaccompanied Children Program ALN#93.676 Contract#: 90ZU0323 & 90ZU0548 Contract Period: 07/01/23 - 06/30/24 Planned Corrective Action: The auditors noted that one SF-PPR quarterly report, two SF-425 quarterly reports, the annual federal financial report and the Uniform Guidance report were not submitted on time. Also, one SF-PRR quarterly report tested was noted to have not been submitted. Management acknowledges these items. Since that time, corrective actions have been implemented to improve timeliness, accuracy, and documentation: Management has reinforced the importance of timely filing through internal policies and incorporated review steps to verify completeness and accuracy of each report before submission. Ownership of report preparation and review responsibilities has been clearly assigned to designated Program and Finance staff. a) A centralized reporting calendar has been established, identifying all required submission deadlines under Uniform Guidance §200.328, §200.329, and §200.512. b) A standardized reconciliation template is now being used for the SF-425 to ensure all amounts reported can be tied directly to accounting records and underlying support. These improvements are designed to ensure ongoing compliance with all federal reporting requirements and to prevent recurrence of these issues in future reporting periods. Person Responsible: The Executive Director and Chief Financial Officer Completion Date: March 31, 2026 for item a) under 2024-004; November 2025 for item b) under 2024-004

Categories

Reporting

Other Findings in this Audit

  • 1162697 2024-001
    Material Weakness Repeat
  • 1162698 2024-002
    Material Weakness Repeat
  • 1162699 2024-003
    Material Weakness Repeat
  • 1162701 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.676 UNACCOMPANIED CHILDREN PROGRAM $14.23M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $74,608
10.553 SCHOOL BREAKFAST PROGRAM $36,903