Finding 1227711 (2025-002)

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 missed deadlines for submitting 1 out of 5 required reports, violating grant compliance terms.
  • Impacted Requirements: Timeliness of report submissions is crucial for maintaining funding and ensuring informed decision-making.
  • Recommended Follow-Up: Management should implement measures to improve report submission timelines and monitor compliance closely.

Finding Text

2. Finding Number: Finding 2025-002 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 related to timeliness of submitting reports to funding agencies. b. Condition: During our audit, JGD noted that there was 1 out of 5 reports submitted outside of defined due dates. The delayed reporting, if uncorrected, might result in delays in the review and approval process on claim reimbursement and ability to make informed decisions about the future requirements on grant funding. c. Context: Recipients of Federal grants are required to comply with all terms and applicable regulations of grant agreements. d. Cause: A temporary staffing shortage impacted the Organization’s ability to timely complete and submit required federal reports, resulting in a failure of controls over compliance. e. Effect: Considered to be an other matter related to internal control over compliance. f. Recommendation: The Organization should take steps to ensure that all required reports are submitted in a timely manner. We recommend that management closely monitor areas of non-compliance.

Corrective Action Plan

2. Current Year Findings 2025-002 e. Program Name: Supportive Services for Veterans Families: CFDA 64.033 f. Criteria: Failure to comply with the grant agreement’s terms and applicable regulations: The Organization did not comply with grant compliance requirements related to timeliness of submitting reports to funding agencies. g. Condition: During our audit, JGD noted that there was 1 out of 5 reports submitted outside of defined due dates. The delayed reporting, if uncorrected, might result in delays in the review and approval process on claim reimbursement and ability to make informed decisions about the future requirements on grant funding. h. Response: Management acknowledges the finding. During the audit period, staffing transitions within the accounting department affected the timing of the monthly financial close process, which contributed to one required report being submitted after the established deadline. To address this matter, the organization has filled the Accounting Manager position and added a Senior Accountant to strengthen the overall accounting capacity and improve the timeliness of financial reporting. Management has also established a targeted 20-day monthly close process and enhanced monitoring of reporting deadlines to support timely submission of grant reports and continued compliance with funding requirements.

Categories

Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1227710 2025-001
    Material Weakness Repeat

Programs in Audit

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