Finding 1174802 (2025-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-20
Audit: 388356
Organization: Epidaurus Dba Amity Foundation (AZ)

AI Summary

  • Core Issue: The Organization failed to submit required financial reports on time and did not use the correct cumulative data.
  • Impacted Requirements: Reports must be submitted within 45 days post-quarter and must reconcile with official accounting records, including match expenditures.
  • Recommended Follow-up: Enhance training on grant reporting requirements to ensure compliance with deadlines and reporting standards.

Finding Text

Assistance Listing Number and Title: ALN 17.270, Reentry Employment Opportunities Federal Agency: U.S. Department of Labor Federal Award Numbers: YF-39537-23-60-A-4 and 24A60PE000026-01-00 Grant period: February 1, 2023 through July 31, 2026 and July 1, 2024 to December 31, 2027 Criteria: The Uniform Guidance requires recipients to maintain accurate and complete reporting systems. Financial management systems must provide accurate, current, and complete disclosure of financial results in accordance with the requirements of the federal award and grant agreement. In addition, the grant agreement requires submission of quarterly ETA-9130 Financial Reports and quarterly narrative reports no later than 45 days after the end of each quarter. Quarterly ETA-9130 Financial Reports are required to report cumulative amounts. All reports must reconcile to official accounting records and comply with prescribed content and format requirements, which includes reporting match expenditures. Condition: The Organization did not properly submit required reports timely in compliance with the terms of the grant agreements. Cause: The Organization had a misunderstanding regarding the requirements and deadlines of the reports. Effect: The Organization was out of compliance with specific reporting requirements that are required per the grant agreements. Context: The March 2025 Quarterly ETA-9130 report was submitted three days late without an approved extension. Of the four quarters tested, this was the only instance of a late submission that had no extension period granted. The Quarterly ETA-9130 reports for September 2024, December 2024, and March 2025 were submitted using quarterly financial information rather than the required cumulative financial information. Further, one grant agreement specified match requirements, and match expenditures were not reported on the quarterly reports. Questioned costs: None Repeat Finding: No Recommendation: We recommend the Organization increase its training on grant reporting requirements to ensure timelines are met and all required elements per the grant agreements are reported. Views of responsible officials of the auditee: The Organization agrees with the findings and has implemented written procedures to ensure timely submission of reports and training of staff.

Corrective Action Plan

Condition: The Organization did not properly submit required reports timely in compliance with the terms of the grant agreements. Response: The Organization concurs with the finding. Corrective Action Plan: The Organization has implemented written procedures to ensure timely submission of reports and training of staff. Responsible Official: Gloria Meridew, Director of Finance Anticipated Completion Date: End of FY 2026

Categories

Reporting

Other Findings in this Audit

  • 1174800 2025-002
    Material Weakness Repeat
  • 1174801 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1.35M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $603,692
17.270 REENTRY EMPLOYMENT OPPORTUNITIES $192,374