Finding 1206101 (2023-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-04-08
Audit: 398055
Organization: Future Ready Five (OH)
Auditor: GBQ PARTNERS LLC

AI Summary

  • Core Issue: One monthly invoice was submitted late, and no program report was submitted for December 2023, leading to noncompliance with grant requirements.
  • Impacted Requirements: Monthly invoicing must be submitted within 15 days of month-end, and a monthly program report is required under the subaward agreement.
  • Recommended Follow-Up: Ensure all invoices and reports are submitted on time, and seek formal amendments for any exceptions to grant requirements to reduce compliance risks.

Finding Text

Reference Number: 2023-03 Finding: Finding Type: Noncompliance with Major Program Requirements Title and ALN of Federal Program: 21.027 - Coronavirus State and Local Fiscal Recovery Funds Criteria or Specific Requirement: L. Reporting – Franklin County Department of Job and Family Services (the pass-through grantor) requires submission of monthly invoicing within 15 calendar days of each month-end. Additionally, a program report is required to be submitted monthly under the subaward agreement. Condition: One monthly invoice was identified as being submitted to the pass-through grantor after the deadline. No monthly program report was submitted for December 2023. Cause: Resource constraints and lack of timeliness in the Organization’s cost reconciliation process. The requirement to submit the monthly program report was informally waived by the pass-through grantor. Effect or Potential Effect: Failure to submit reports timely causes the Organization to be out of compliance with grant requirements. Questioned Costs: None. Identification as a Repeat Finding: N/A – this was not reported as a finding in the prior audit report. Context: Of two monthly invoices selected for testing, one was identified as being submitted to the pass-through grantor after the required 15-calendar day timeframe. No monthly program report was submitted for December 2023. Recommendation: All requested invoices and reports should be submitted in accordance with the grant requirements outlined in the underlying agreement. Though the pass-through grantor provided informal extensions and/or a waiver of requirements, we recommend the Organization obtain formal amendments for any exceptions from grant provisions to minimize the risk of uncertainty. Views of Responsible Officials: Management agrees with the finding and recommendation.

Corrective Action Plan

Reference Number: 2023-03 Finding Type: Noncompliance with Major Program Requirement Description of Finding: Franklin County Department of Job and Family Services (the pass-through grantor) requires submission of monthly invoicing within 15 calendar days of each month-end. Additionally, a program report is required to be submitted monthly under the subaward agreement. One monthly invoice was identified as being submitted to the pass-through grantor after the deadline. No monthly program report was submitted for December 2023. The reason for the finding is resource constraints and lack of timeliness in the Organization’s cost reconciliation process. The requirement to submit the monthly program report was informally waived by the pass-through grantor. Failure to submit reports timely causes the Organization to be out of compliance with grant requirements. Statement of Concurrence: Management agrees with the finding. Corrective Action: The pass-through grantor informally granted that invoices and program reports be submitted quarterly. The pass-through grantor has since provided formal documentation to the auditors that it has allowed invoices and program reports to be submitted quarterly. Completion Date: February 2026 Name of Contact Person: Maureen Thomas Chief Financial Officer 917-405-7185 maureen@frfive.org

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1206099 2023-001
    Material Weakness Repeat
  • 1206100 2023-002
    Material Weakness Repeat
  • 1206102 2023-004
    Material Weakness Repeat
  • 1206103 2023-005
    Material Weakness Repeat
  • 1206104 2023-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.03M