Finding 1176213 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-03-03
Audit: 390081
Organization: Rian Immigrant Center, Inc. (MA)
Auditor: NASH CPAS LLC

AI Summary

  • Core Issue: There is a material weakness in internal control due to late filings of single audits for federal awards over $750,000.
  • Impacted Requirements: Organizations must submit their single audit within 9 months post fiscal year-end to avoid penalties and maintain funding eligibility.
  • Recommended Follow-Up: The Center should establish tracking procedures for federal funds and ensure timely completion of audits to comply with OMB regulations.

Finding Text

Type of Finding: Material Weakness in Internal Control over Major Federal Program Condition: Organizations that expend $750,000 or more in federal awards during their fiscal year are required to submit their single audit 9 months after the end of the fiscal year. Effect: Failure to meet the filing deadline may result in regulatory penalties and potential impact on future funding eligibility. Cause: The delay was attributed to late filings. Criteria: According to the Office of Management and Budget (OMB) Circular A-133 (now superseded by 2 CFR Part 200), entities that expend $750,000 or more in federal awards during their fiscal year are required to have a single audit conducted to ensure compliance with federal regulations and the proper stewardship of federal funds. Recommendation: We recommend the Center review all federal awards and expenditures to ensure that all deadlines are met, including the completion of a single audit as required by OMB regulations. The Center should implement procedures to track federal funds and ensure that audit requirements are met in a timely manner for future fiscal years. View of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to monitor federal expenditures throughout the year, ensuring that thresholds triggering audit requirements are promptly identified.

Corrective Action Plan

The Center recognizes the importance of timely compliance with federal single audit requirements. To address this, in the Spring of 2024, management engaged an outsourced firm specializing in supporting non-profits to provide full-service Controller and CFO support. This firm monitors federal expenditures throughout the year, ensuring that thresholds triggering audit requirements are promptly identified. In addition, procedures have been established to track all federal awards and deadlines, with periodic compliance reviews performed by the outsourced team. This oversight will ensure that single audits are conducted when required and that federal regulations are met in a timely and accurate manner.

Categories

Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1176212 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.75M