Finding 1227710 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-08-24
Audit: 409675
Organization: Adjoin (CA)

AI Summary

  • Core Issue: The organization failed to track administrative expenses as required by the grant agreement.
  • Impacted Requirements: Compliance with federal grant terms and regulations was not met, specifically regarding expense tracking.
  • Recommended Follow-Up: Management should continue to monitor compliance closely to prevent future issues.

Finding Text

Adjoin Schedule of Findings and Questioned Costs Year Ended December 31, 2025 Section II - Financial Statement Findings Section None noted. Section III - Federal Award Findings and Questioned Costs Section 1. Finding Number: Finding 2025-001 Program Name: Supportive Services for Veterans Families: CFDA 64.033 Pass Through Agency: N/A Type of Finding: Other matters, compliance a. Criteria: Failure to comply with the grant agreement’s terms and applicable regulations: The Organization did not comply with grant compliance requirements such as tracking administrative expenses charged to the program outside of the general ledger. b. Condition: During our audit, JGD noted Finding 2024-001 was not properly implemented until November 2025. c. Context: Recipients of Federal grants are required to comply with all terms and applicable regulations of grant agreements. d. Cause: Lack of training to accounting personnel regarding federal program compliance requirements, as well as limited management review over the classification and tracking of administrative expenses with the general ledger. e. Effect: Considered to be an other matter related to internal control over compliance. f. Recommendation: Management has taken effective action to correct tracking over administrative costs in accordance with grant agreement’s terms and regulations and no additional findings were noted in relation to finding 2024-001. We recommend that management closely monitor areas of non-compliance.

Corrective Action Plan

July 22, 2026 JGD & Associates LLP 9191 Towne Centre Drive Suite 340 San Diego, California 92122 Re: Corrective Action Plan Dear JGD & Associates LLP, The following are responses to the program audit findings from the most recent audit of Adjoin. 1. Current Year Findings 2025-001 a. Program Name: Supportive Services for Veterans Families: CFDA 64.033 b. Criteria: Failure to comply with the grant agreement’s terms and applicable regulations: The Organization did not comply with grant compliance requirements such as tracking administrative expenses charged to the program outside of the general ledger and timeliness of submitting reports to funding agencies. c. Condition: During our audit, JGD noted one compliance failure determined in Finding 2024-001 was not corrected until November 2025. As such, JGD considered this a failure of controls over compliance during the year. d. Response: Management acknowledges the finding. During the audit period, competing operational priorities, technology initiatives, and staffing transitions delayed the full implementation of corrective actions identified in the prior year. These factors also contributed to one required report being submitted after the established deadline. Corrective actions have since been completed, including the addition of dedicated technology leadership, hiring of needed accounting personnel, improved project prioritization, and enhanced monitoring of compliance deadlines. Management believes these measures strengthen internal controls and will support timely compliance with grant reporting requirements going forward.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1227711 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
64.033 VA SUPPORTIVE SERVICES FOR VETERAN FAMILIES PROGRAM $11.89M