Finding 1227807 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-08-25
Audit: 409777
Organization: Soledad Enrichment Action, Inc. (CA)
Auditor: BPM

AI Summary

  • Core Issue: The Organization failed to submit its Data Collection Form on time, breaching 2 CFR 200.510(a) requirements.
  • Impacted Requirements: Timely submission is crucial for compliance with federal audit standards, affecting future funding opportunities.
  • Recommended Follow-up: Enhance staffing in the accounting department to ensure timely completion of financial reports and audits.

Finding Text

Awarding Agency: U.S. Department of Health and Human Services, Pass-through from Community Health Councils, Inc. U.S Department of the Treasury, Pass-through from County of Los Angeles Department of Public Health Federal Program: Community Health Worker Outreach Initiative Coronavirus State and Local Fiscal Funds Assistance Listing Number: 93.323 and 21.027 Grant Period: July 2023 through June 2024 and July 2023 through December 31, 2024. Criteria: 2 CFR 200.510(a) requires an entity subject to a Single Audit to submit and certify its audit package and Data Collection Form within nine months of its fiscal year-end. Condition: The Organization did not submit and certify its Data Collection Form to the Federal Audit Clearinghouse within nine months of fiscal year-end. Cause and Perspective: In May 2020, SEA experienced the unexpected departure of its Chief Financial Officerduring a period of global operational disruption. As a result, SEA encountered challenges in timely fiscal year-end close due to difficulties in identifying and hiring qualified replacement staff, which contributed to delays in completing subsequent audits. Effect: The Organization has been in contact with the agency on the progress of the projects and late submission appears to have no effect at the current date on the projects or the Organization receiving new awards subsequently. Questioned Cost: None Context: Audit was started late. Repeat finding: Yes, 2022, 2023, 2024, 2025 Recommendation: We recommend that the entity continue to strive for an effective method of completing the financial information within a time frame that allows both the entity and the auditors to navigate and complete the audit within 9 months. Views of Responsible Officials: The Organization concurs with the finding. The Organization will prevent future delays of the report by now having more accounting personnel to assist in meeting the filing deadline.

Corrective Action Plan

2024-001 Late Submission of Single Audit Report Root Cause: In May of 2020 SEA unexpectedly experienced the loss of its Chief Financial Office during the midst of a global shut down. SEA was unable to close out the fiscal year in a timely manner due to challenges of identifiying and hiring qualified staff after this loss. This began a domino effect of let audits. Name of Contact Persons: Nathan Arias, President and Chief Executive Officer and Mirna Romero, Director of Opertations and Chief Financial Officer Corrective Action: Once the FY 23-24 audit is finalized, SEA will immediately begin working on the audit for FY 24-25 and are ready to diligently work on completing this audit with a new team. Proposed Completion Date: SEA will esnure that the next single audit, for fiscal year 2024-25 is completed by October 15, 2026, with plans to expedite the 2026 audit thereafter.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1227804 2024-001
    Material Weakness Repeat
  • 1227805 2024-001
    Material Weakness Repeat
  • 1227806 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $477,599
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $331,868
93.667 SOCIAL SERVICES BLOCK GRANT $136,177
16.032 ACADEMIC-BASED DRUG FIELD TESTING AND TRAINING INITIATIVE $61,074