Finding 1172980 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-02-10

AI Summary

  • Core Issue: JFS failed to submit quarterly reports on time for multiple grants, impacting compliance.
  • Impacted Requirements: Timely reporting is crucial for cash flow and maintaining grant eligibility.
  • Recommended Follow-Up: Implement a review process and set reminders for due dates to ensure timely submissions.

Finding Text

criteria and Condition: It is JFS’s responsibility to submit quarterly reports by the 15th day following the quarter end. Management did not submit the 1st, and 3rd quarterly reports timely for the Department of Housing and Urban Development, Department of Community Affairs – Integrated Homelessness Prevention and Services Grant (14.231). In addition, management did not submit the 1st quarterly report timely for the Department of Health and Human Services, Special Programs for the Aging, Title IV And Title II Discretionary (93.048). Cause: In 2024, the CFO and the Controller were new to their roles and oversight of financial reporting and grant-management. This resulted in delays in fulfilling the grants compliance requirement. As a result, reporting packages were not submitted timely. Effect: Reimbursement of monies must be approved and accepted by the agency before reimbursements are issued, having a direct impact on JFS’s cash flow for the Integrated Homelessness Prevention and Services Grant (14.231). For the Special Programs for the Aging (93.048) non-compliance of grant requirements could result in loss of the grant. Recommendations: We recommend establishing a detailed review process to help ensure compliance with grant requirements. Management should keep reminders of due dates required for all grants and contracts to ensure timely submissions of reports.

Corrective Action Plan

JFS is in the process of hiring a new Chief Financial Officer (CFO) with pertinent experience for non-profits, governments, and billing. That person will lead the finance team to ensure best accounting and internal control practices are implemented and followed. During 2025, JFS strengthened its governance and internal control environment by implementing a centralized system for tracking all grant-related data in a single, secure location. All grant documentation is now maintained electronically within the organization’s OneDrive system, improving record retention, transparency, and audit readiness. The Finance Department established regular internal finance meetings, in addition to standing leadership meetings, to promote consistent communication, segregation of duties, and oversight across the finance function. Management continues to provide the Finance Committee of the Board with monthly financial reports; supporting ongoing fiscal monitoring and informed decision-making.

Categories

Student Financial Aid Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1172979 2024-001
    Material Weakness Repeat
  • 1172981 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $258,328
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $247,906
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $194,209
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $124,981
93.048 SPECIAL PROGRAMS FOR THE AGING, TITLE IV, AND TITLE II, DISCRETIONARY PROJECTS $110,352
94.017 AMERICORPS SENIORS SENIOR DEMONSTRATION PROGRAM (FGP) 94.017 $99,802
97.008 NON-PROFIT SECURITY PROGRAM $83,392
93.667 SOCIAL SERVICES BLOCK GRANT $70,500
93.043 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART D, DISEASE PREVENTION AND HEALTH PROMOTION SERVICES $58,458
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $31,150
93.569 COMMUNITY SERVICES BLOCK GRANT $17,879
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $9,041