Finding Text
Finding No.2024-002: Maintain Supporting Documentation for Required Federal Reports Assistance Listing Number: 93.566 Program Name: Refugee and Entrant Assistance State/Replacement Designee Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entity: California Rural Legal Assistance Foundation Federal Award Number: Not available in the contract Federal Award Year: November 1, 2022 – March 31, 2025 Compliance Requirement: Reporting Criteria or Specific Requirements: The Compliance Supplement requires that Quarterly Expenditure Reports be submitted for this program. Additionally, 2 CFR 200.334 requires non-federal entities to retain financial records, supporting documentation, and all other pertinent records to substantiate federal award reporting. Condition: During our testing of 24 reporting samples, we identified two (2) instances wherein Quarterly Expenditure Reports related to the grant of Council on American Islamic Relations, San Francisco Bay Area Office (CAIR-SFBA), including the evidence of submission (e.g. confirmation emails or system-generated receipts), were not available for review. Cause: Management indicated that the reports and supporting documentation could not be located. Additionally, the staff previously responsible for preparing and submitting these reports is no longer with the Organization. Effect: The absence of documented evidence may affect CAIR-CA’s ability to demonstrate compliance with the applicable federal requirements. Questioned Cost: None Recommendation: We recommend that CAIR-CA finalize and consistently implement a formal process for retaining submitted grant reports and supporting documentation. This process should include keeping submission confirmations, such as email receipts, portal confirmations, or screenshots, as well as retaining copies of the submitted reports, to provide clear evidence of timely and accurate submission for all required reports. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and has already implemented reporting procedures to include the retention of submission confirmations as part of its grant documentation. Because the organization’s first single audit in FY2023 was conducted concurrently with the FY2024 single audit, there was limited opportunity for these procedural improvements to be reflected in the FY2024 single audit testing cycle. As a result, the impact of these changes will be more fully reflected in the FY2025 single audit, which is scheduled to commence this year. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Implementation date: October 31, 2025