Finding 1226428 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-13

AI Summary

  • Core Issue: A federal award was missing from the Schedule of Expenditures of Federal Awards (SEFA), leading to an understatement of $177,500.
  • Impacted Requirements: Compliance with federal reporting standards (2 CFR §200.502) was not met due to inadequate procedures for identifying all federal awards.
  • Recommended Follow-Up: Implement formal federal grant management policies to improve tracking and reporting of all federal awards and funding changes.

Finding Text

2025 – 001 Completeness of schedule of expenditures of federal awards (Significant Deficiency) Criteria: Federal awards are required to be reported on the Schedule of Expenditures of Federal Awards (SEFA) whenexpenditures are incurred (2 CFR §200.502). Condition: The Organization received a federal award that was not included on the original version of the SEFA provided to us in conjunction with the audit. Cause: The Organization did not have adequate procedures in place to identify all federal awards and ensure they were properly reflected on the SEFA. Effect: Federal award expenditures were initially understated on the 2025 SEFA by $177,500. Recommendation: The Organization should strengthen its process of reviewing amendments to contracts to ensure funding changes are properly identified and tracked. Views of Responsible Officials: Management acknowledges the finding and corrected the 2025 SEFA to include the omitted award expenditures. The Organization’s Controller will implement formal federal grant management policies and procedures to ensure all federal awards are properly identified, tracked, and reported on the SEFA in accordance with 2 CFR §200.502, including noting funding source changes year to year.

Corrective Action Plan

Corrective Action Plan FINDING - 2025-001 - Federal Award Program Name: 93.958 Senior Services Criteria: Federal awards are required to be reported on the Schedule of Expenditures of Federal Awards (SEFA) when expenditures are incurred (2CFR Part 200). Condition: The Organization had a federal award received in a prior year that was not originally included on the SEFA. Cause of Condition: The Organization did not have adequate procedures in place to identify all federal awards and ensure they were properly reflected on the SEFA. Potential Effect of Condition: The Organization’s federal award expenditures not being included in the audited SEFA. Views of Responsible Officials: Management has acknowledged the finding and added the award expenditures to the SEFA. Corrective Action: The Controller will implement formal federal grant management policies and procedures to ensure all federal awards are properly identified, tracked, and reported on the SEFA in accordance with 2 CFR Section 200.502. Key actions include: - Developing and implementing a written federal grant and loan management policy, subject to Board approval. - Establishing and maintaining a centralized electronic repository of all federal grant and loan documentation, including key award details necessary for SEFA reporting. - Providing training to accounting and program staff responsible for identifying and tracking federal awards. - Performing quarterly reviews of the federal awards repository to ensure completeness and accuracy of information used in SEFA preparation. - The Controller will perform quarterly reviews, and the CFO will review and approve the completeness of the federal awards listing. Procedures will be implemented immediately and in place for the next SEFA reporting cycle.

Categories

Reporting Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $1.00M
93.150 PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS (PATH) $355,576
14.267 CONTINUUM OF CARE PROGRAM $226,867
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $177,500