Finding 1915 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-11-15

AI Summary

  • Core Issue: The Center missed the deadline to submit financial statements to the Federal Audit Clearinghouse.
  • Impacted Requirements: Financial statements must be submitted within nine months of the fiscal year end or thirty days of the audit report date, as per 2 CFR part 200 subpart F.
  • Recommended Follow-Up: Monitor federal expenditures closely and start the audit process in spring to meet future deadlines.

Finding Text

Condition: The Center did not submit their financial statements to the Federal Audit Clearinghouse prior to the filing deadline. Criteria: Entities subject to single audit requirements are required to submit their financial statements within nine months of the fiscal year end or thirty days of the audit report date (whichever is sooner) in accordance with 2 CFR part 200 subpart F. Cause: The Center was not previously required to file with the Federal Audit Clearinghouse under 2 CFR part 200 subpart F §200.507(c)(1) because its prior grant expenditures did not exceed the $750,000 threshold. During the course of the Center’s annual audit, the determination was made that federal funds were spent in excess of $750,000. Upon this determination, the scope of the financial audit was expanded to ensure compliance with 2 CFR part 200 Subpart F. We concluded the single audit on November 10, 2023. Effect: Submission was not made timely. Recommendation: We recommend the Center closely monitor federal expenditures and ensure accurate reporting in the future to enable earlier determination if a filing with the Federal Audit Clearinghouse is required. In addition, we recommend starting the audit process in the spring to allow ample time to comply with the nine-month deadline. Views of Responsible Officials and Planned Corrective Actions: The Center agrees that the single audit report was not timely filed. As referenced above, the Center was previously under the $750,000 threshold for the single audit requirement, but completed and submitted the single audit report once the requirement was known. The Center has provided a corrective action plan to ensure timely filing going forward.

Corrective Action Plan

Organization's Response: MCJ agrees that the single audit report was not timely filed. As referenced in the Finding, MCJ had not previously exceeded the $750,000 threshold for the single audit requirement. Moving forward, MCJ will review federal expenditures for federal awards at the close of the fiscal year to determine if the threshold for the submission of a single audit has been exceeded. Furthermore, MCJ will once again work with its auditors to schedule MCJ’s audit in order to have the audit completed and any single audit report, if necessary, filed on a timely basis.

Categories

Reporting

Other Findings in this Audit

  • 1916 2022-002
    Significant Deficiency
  • 1917 2022-003
    Significant Deficiency
  • 1918 2022-003
    Significant Deficiency
  • 1919 2022-003
    Significant Deficiency
  • 1920 2022-003
    Significant Deficiency
  • 1921 2022-003
    Significant Deficiency
  • 578357 2022-001
    Significant Deficiency
  • 578358 2022-002
    Significant Deficiency
  • 578359 2022-003
    Significant Deficiency
  • 578360 2022-003
    Significant Deficiency
  • 578361 2022-003
    Significant Deficiency
  • 578362 2022-003
    Significant Deficiency
  • 578363 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.418 Private Enforcement Initiatives $271,957
14.239 Home Investment Partnerships Program $179,456
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B (b) $150,762
14.231 Emergency Solutions Grant Program $118,885
14.416 Education and Outreach Initiatives $87,000