Finding 1215712 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-05-27
Audit: 402364
Organization: Reimagining Justice, Inc. (NJ)

AI Summary

  • Core Issue: The reporting package and data collection form for the September 2023 audit were not submitted by the June 30, 2024 deadline, repeating a previous finding.
  • Impacted Requirements: This delay violates 2 CFR Section 200.512(a), which mandates timely submission of audit reports.
  • Recommended Follow-Up: RJI should enhance record-keeping and audit processes to ensure timely completion and submission of required documents moving forward.

Finding Text

Condition Found The reporting package and data collection form for the September 2023 audit was not filed by the June 30, 2024 deadline. This is a repeat of Finding 2022-001 from the September 2022 audit. Effect RJI was in violation of 2 CFR Section 200.512(a). Cause The Single Audit was not completed timely for several reasons, including limited financial resources, and multiple transitions in external audit providers between 2023 and 2025 including prior auditor-initiated terminations and capacity constraints. Criteria Uniform Guidance and 2022 Compliance Supplement, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse by the earlier of 30 calendar days after the reports are received from the auditor, or nine months after the end of the audit period. Recommendation RJI should ensure that its records are completed and reconciled in a timely manner, so that the Single Audit can be performed and completed on time, and the reporting package and data collection form can be submitted before the deadline. View of Responsible Officials RJI has strengthened its fiscal oversight and compliance infrastructure through the addition of dedicated finance and grants management personnel, refinement of internal controls and fiscal sponsor coordination processes, and engagement of an independent audit firm to complete the outstanding Single Audit. In addition, RJI has implemented enhanced financial monitoring procedures, standardized documentation and reconciliation practices, formalized grant closeout timelines, and established recurring internal review checkpoints to improve reporting accuracy and compliance. To support long-term sustainability and audit readiness, RJI is institutionalizing policies and continuity plans designed to ensure timely completion of all required federal and state filings, strengthen financial transparency, and reduce reliance on ad hoc processes.

Corrective Action Plan

Condition The reporting package and data collection form for the fiscal year ended September 30, 2023 were not submitted to the Federal Audit Clearinghouse by the June 30, 2024 deadline required under 2 CFR §200.512(a). This represents a repeat finding from the prior audit period. Corrective Action Plan RJI acknowledges the delayed completion and submission of the Single Audit and has implemented corrective actions designed to strengthen financial oversight, improve audit readiness, and ensure timely completion of future federal and state reporting requirements. To address the root causes identified, RJI has implemented the following corrective measures. Strengthened Financial and Grants Infrastructure RJI has expanded organizational financial capacity through dedicated finance and grants management staffing with responsibility for grant tracking, financial reconciliation, audit preparation, and compliance monitoring. Formalized Audit Preparation and Annual Compliance Calendar RJI has established a documented year-end financial close and audit readiness calendar that includes internal deadlines for monthly reconciliations, grant closeout procedures, preparation of supporting schedules, auditor request tracking, draft review periods, and Federal Audit Clearinghouse submission timelines. Enhanced Fiscal Sponsor Coordination and Governance Procedures RJI has refined communication and workflow processes with its fiscal sponsor and external financial partners by implementing recurring financial review meetings, defined responsibility matrices, and standardized documentation requirements to ensure timely access to financial records and audit support. Established Audit Continuity and Vendor Management Procedures Recognizing prior disruptions caused by auditor transitions and capacity limitations, RJI has implemented procedures to maintain continuity of audit services including earlier auditor engagement, documented deliverables and timelines, periodic status meetings, and contingency planning for audit completion. Ongoing Monitoring and Board Oversight Financial compliance status, audit progress, and reporting deadlines will be reviewed regularly by executive leadership and reported to the Board of Directors (or Finance/Audit Committee, if applicable) until all required filings are completed and sustained. Documentation and Internal Controls Enhancement RJI has strengthened record retention, reconciliation procedures, and grant documentation practices to improve the completeness and availability of records required for annual audit testing and federal reporting Anticipated Completion Date Corrective actions began implementation in November 2025 and are expected to be fully operational and incorporated into all future annual audit and federal reporting cycles beginning with FY2026 reporting requirements. Status In Progress / Partially Implemented RJI has completed staffing and process improvements and is actively implementing monitoring procedures to ensure sustained compliance with 2 CFR §200.512(a) and timely submission of future Single Audit reporting packages. Management Statement Management believes the corrective actions implemented will ensure full compliance with federal and state reporting requirements and prevent recurrence of late audit submissions. Responsible Individual Dr. Liza Chowdhury Executive Director Date: 5/26/2026

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1215711 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $725,596
16.575 CRIME VICTIM ASSISTANCE $135,293