Finding 1914 (2022-002)

Significant Deficiency
Requirement
LP
Questioned Costs
-
Year
2022
Accepted
2023-11-15
Audit: 3317
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: The Data Collection Form was not submitted by the September 30, 2023 deadline, violating compliance requirements.
  • Impacted Requirements: Timely submission of reports as per 2 CFR § 200.512, which mandates submission within 30 days post-audit report or nine months after the audit period.
  • Recommended Follow-Up: Implement procedures for timely submissions and enhance training and succession planning to mitigate disruptions from management turnover.

Finding Text

Finding 2022-002 U.S. Department of Health and Human Services Programs: 93.914 – HIV Emergency Relief Project Grants Type of Finding: Noncompliance and Significant Deficiency Compliance Requirement: Timely Submission of Reporting Package and Data Collection Form Repeat Finding: No Condition: The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 and was not submitted by that date. Criteria: In accordance with 2 CFR § 200.512, the audit must be completed and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Cause: The Organization experienced significant turnover in key management positions during fiscal year 2022. As a result, supporting documentation for financial transactions could not be located initially and were not readily available, which delayed the financial reporting process. Effect: Because of the late submission of the audit reports, the reporting package was not made available to users in a timely manner. Questioned Costs: None. Recommendation: We recommended that the Organization develop procedures to ensure that future reporting packages are submitted within the earlier of 30 days after receipt of the auditor’s reports, or nine months after the end of the audit period. We also recommend that the Organization ensure appropriate training, knowledge transfer, and succession planning within the organization to ensure that turnover in key management positions does not cause disruption to operations or financial reporting. Management’s Response and Corrective Action Plan Management agrees with the finding. See schedule of corrective action.

Corrective Action Plan

Responsible Official’s Response and Corrective Action Plan In 2022, the Federal Award manager at Associated Black Charities departed mid-year, leading to considerable confusion among the existing management. As we transitioned into 2023, the entire management team underwent changes, resulting in the loss of crucial knowledge about the existing filing system from previous years. With the introduction of new leadership, we are now poised to implement fresh policies and procedures to address our succession planning needs. These updated protocols will outline the process for filing essential information and its specific location, ultimately expediting the audit process. Planned Implementation Date of Corrective Action December 2023 Person Responsible for Corrective Action Travis Curtis, Director of Finance

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 1913 2022-001
    Significant Deficiency
  • 578355 2022-001
    Significant Deficiency
  • 578356 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.914 Hiv Emergency Relief Project Grants $3.58M