Finding 1216576 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-06-04
Audit: 403057
Organization: Townspeople (CA)

AI Summary

  • Core Issue: The organization failed to submit the Single Audit reporting package on time, missing the deadline by nearly two years.
  • Impacted Requirements: This delay violates 2 CFR §200.512, leading to potential increased oversight from federal agencies.
  • Recommended Follow-Up: Management should improve internal procedures, set formal timelines, assign responsibilities, and enhance communication with auditors to ensure timely submissions in the future.

Finding Text

Finding 2024-001 – Significant Deficiency in Internal Control Over Compliance – Untimely Submission of Single Audit Reporting Package Federal Program Information Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number(s): 14.235, 14.239, 14.241, 14.267 Program Name: Supportive Housing, HOME Investment Partnerships Program, Housing Opportunities for Persons with AIDS, Continuum of Care Program Type of Finding Significant Deficiency in Internal Control Over Compliance Other Matter – Reporting Criteria In accordance with 2 CFR §200.512, the auditee is required to submit the Data Collection Form and reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period. Condition The Organization did not submit the required Single Audit reporting package to the Federal Audit Clearinghouse within the required timeframe for the fiscal year ended December 31, 2024. The reporting package was submitted in June 2026. Cause Management did not have adequate procedures in place to ensure timely preparation and submission of financial information required for completion of the audit and Single Audit reporting package. Delays in providing requested financial information to the auditors, along with other unforeseen circumstances encountered during the audit process, contributed to the untimely filing.. Effect Failure to submit the Single Audit reporting package timely constitutes noncompliance with Uniform Guidance reporting requirements and may subject the Organization to increased oversight from federal agencies and pass-through programs. Questioned Costs None noted. Recommendation We recommend management strengthen internal procedures related to the preparation, review, and timely submission of financial information necessary for completion of the audit and Single Audit reporting requirements. Management should establish formal timelines, assign responsibility for monitoring reporting deadlines, and enhance communication with auditors throughout the audit process to help ensure timely filing with the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Action Management acknowledges the finding and recognizes improvements are needed in the coordination and timing of information provided during the audit process. Management plans to implement enhanced internal timelines and monitoring procedures for future audits and Single Audit submissions. Management will also work more closely with auditors throughout the engagement to help ensure all required information is provided timely and future reporting deadlines are met.

Corrective Action Plan

Management has implemented the following corrective actions: 1. Established a formal year-end closing timeline that includes deadlines for completion of the trial balance, account reconciliations, and supporting schedules. 2. Assigned responsibility to the Executive Director to monitor progress toward year-end closing milestones and ensure information is provided to the auditors on a timely basis. 3. Developed a comprehensive audit preparation checklist identifying all schedules, reconciliations, and documentation required by the auditors. 4. Scheduled pre-audit planning meetings with the auditors to establish mutually agreed-upon deadlines and identify potential issues that could delay audit completion 5. Implemented periodic status reviews during the audit process to monitor progress and address outstanding auditor requests promptly.

Categories

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 1216563 2024-001
    Material Weakness Repeat
  • 1216564 2024-001
    Material Weakness Repeat
  • 1216565 2024-001
    Material Weakness Repeat
  • 1216566 2024-001
    Material Weakness Repeat
  • 1216567 2024-001
    Material Weakness Repeat
  • 1216568 2024-001
    Material Weakness Repeat
  • 1216569 2024-001
    Material Weakness Repeat
  • 1216570 2024-001
    Material Weakness Repeat
  • 1216571 2024-001
    Material Weakness Repeat
  • 1216572 2024-001
    Material Weakness Repeat
  • 1216573 2024-001
    Material Weakness Repeat
  • 1216574 2024-001
    Material Weakness Repeat
  • 1216575 2024-001
    Material Weakness Repeat
  • 1216577 2024-002
    Material Weakness Repeat
  • 1216578 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.30M
14.235 SUPPORTIVE HOUSING PROGRAM $240,000
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $125,150
14.267 CONTINUUM OF CARE PROGRAM $119,486