Finding 1166837 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-12-29

AI Summary

  • Core Issue: The Organization missed the deadline for submitting its single audit reporting package, filing it three months late.
  • Impacted Requirements: This delay violates 2 U.S. CFR 200.512, which mandates timely submission to the Federal Audit Clearinghouse.
  • Recommended Follow-Up: Enhance financial reporting procedures to ensure compliance with submission deadlines in the future.

Finding Text

Current Year Findings Criteria: In accordance with 2 U.S. Code of Federal Regulation (CFR) 200.512, the Organization must submit its single audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) no later than 30 days after the date of its audited financial statements or 9 months after the fiscal year end, whichever occurs earlier. Condition and Context: The federal reporting deadline for the Organization’s December 31, 2024 reporting package was September 30, 2025; however, the Organization did not issue its single audit reporting package until December 2025. Effect: Late filing has resulted in noncompliance with timely submission of financial information to grantor agencies. Cause: The Organization did not have adequate procedures to ensure a timely filing process so that it can submit its single audit reporting package to the FAC no later than nine months after fiscal-year end. Recommendation: The organization should improve its financial reporting process so that it can submit its single audit reporting package to the FAC no later than nine months after the fiscal year end. Management Response: Refer to corrective action plan.

Corrective Action Plan

Corrective Action Plan Fiscal Year 2024 Audit AYUDA, INC. Introduction AYUDA, INC. has prepared this Corrective Action Plan in response to observations identified during the Fiscal Year 2024 audit. This plan outlines management’s actions to further strengthen internal processes, enhance coordination, and support continued compliance with applicable financial and reporting requirements. The organization maintains established financial and governance practices and views the audit process as an opportunity to reinforce existing controls, clarify responsibilities, and formalize procedures that support efficiency and timeliness. The corrective actions described below are intended to enhance consistency and scalability as organizational operations continue to evolve. Finding 2: Single Audit Report Submission Timeline Condition The audit noted that the Single Audit report submission occurred later than the initially established timeframe. Contributing Factors Factors influencing this observation include: • Opportunities to initiate audit planning earlier within the fiscal cycle. • The need for more clearly defined internal timelines supporting audit coordination. • Increased audit scope and complexity requiring enhanced documentation readiness and cross-functional coordination. Corrective Action Plan 1. Early Audit Planning Management will initiate audit planning earlier in the fiscal year, including confirmation of audit timelines, documentation requirements, and key deliverables. Responsible Party: Sr. Accountant 2. Pre-Audit Readiness Procedures Standardized pre-audit preparation procedures will be followed, including advance completion of reconciliations, schedules, and supporting documentation. Responsible Party: Finance Department 3. Defined Internal Audit Timeline A formal internal audit timeline with clearly defined milestones will be established and monitored throughout the audit cycle. Responsible Party: Sr. Accountant and Executive Director 4. Ongoing Communication with Auditors Regular status check-ins with external auditors will be scheduled to monitor progress, address issues proactively, and support timely completion. Responsible Party: Finance Department 5. Resource and Capacity Planning Management will periodically assess staffing levels and workload distribution related to audit preparation to ensure adequate capacity during critical audit periods. Responsible Party: Finance Department Certification This Corrective Action Plan has been reviewed and approved by management of AYUDA, INC. Name: Miguel Chacon Title: Executive Director Date: 10/18/2025 Name: Paul Rivera Title: Sr. Accountant Date: 10/18/2025

Categories

Reporting

Other Findings in this Audit

  • 1166836 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $735,445
14.921 OLDER ADULTS HOME MODIFICATION GRANT PROGRAM $581,112
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $466,231
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $372,138
14.913 HEALTHY HOMES PRODUCTION PROGRAM $243,371
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $156,149
17.225 UNEMPLOYMENT INSURANCE $68,678
93.569 COMMUNITY SERVICES BLOCK GRANT $60,542
21.033 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND EQUITABLE RECOVERY PROGRAM (CDFI ERP) $50,000