Finding 369682 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-02-19

AI Summary

  • Core Issue: The Organization missed the deadline for submitting the annual audit and performance report, which are required for federal funding compliance.
  • Impacted Requirements: The federal grant mandates that audits and reports be submitted within specific timeframes, which were not met.
  • Recommended Follow-up: Establish a monitoring process for reporting and audit deadlines, and train staff to ensure timely submissions in the future.

Finding Text

Information on the Federal Program: Assistance Listing Number 93.676 - Unaccompanied Alien Children Program. Criteria: The federal grant requires an annual audit of non-federal entities that expend $750,000 or more of Federal Financial Assistance in a fiscal year. The annual audit must be performed by an independent auditor and the reporting package (which includes the audit report) must be submitted to the Federal Audit Clearinghouse within nine months of the entity’s fiscal year-end or within 30 days after receipt of the audit report, if earlier. In addition, the federal grant contract requires both performance reports and financial reports be submitted within prescribed deadlines. Condition and Context: The Organization failed to submit the reporting package within nine months after the Organization’s fiscal year-end. In addition, the Annual Standard Form Performance Progress Report was not submitted by the prescribed deadline. Cause: This was the Organization’s first year meeting the $750,000 threshold that triggers the annual audit requirement. It was management’s understanding that the audit report was due nine months after the end of the federal government contract, rather than the Organization’s fiscal year-end. The Annual Standard Form Performance Progress Report that was due on September 30, 2023 and which was submitted October 10, 2023 was late due to the completion, review and approval of the report taking more time than anticipated. Effect or Potential Effect: Non-compliance with reporting and audit requirements could result in draw-down restrictions or suspension of federal funds. Questioned Costs: None. Recommendation: For governmental assistance, a process should be developed to monitor reporting and audit requirements, to ensure that reports and related audits are submitted in accordance with governmental requirements. Views of Responsible Officials and Planned Corrective Actions: Management understands it is the Organization’s responsibility to file the annual audit within the nine-month timeframe from the Organization’s fiscal year-end and adhere to specific reporting requirements of federal grant contracts. Management has put additional processes in place within the chain of command to ensure that reports are submitted timely by the due date. Staff tasked with completing the reports will also be coached on the importance of drafting the reports well in advance of the due date to give time for review, approval, and submittal by management.

Corrective Action Plan

Hands of Healing Residential Treatment Center, Inc. respectfully submits the following correction action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Doeren Mayhew, 2600 North Loop West, Suite 600, Houston, TX 77092. The finding discussed below from the Schedule of Findings and Questioned Costs (the schedule) for the year ended December 31, 2022 is numbered consistently with the number assigned in the schedule. Federal Award Finding 2022-001. Corrective Action Plan: Management understands that the annual audit must be filed within nine months of the organization's year-end and adhere to specific reporting requirements of federal grant contracts. Management has put additional processes in place within the chain of command to ensure that reports are submitted timely by the due date. Staff tasked with completing the reports will also be coached on the importance of drafting reports well in advance of the due date to give time for review, approval, and submittal by management. Contact Person Responsible for Corrective Action: Mr. Victor Weetly, President. Anticipated Completion Date: The corrective action plan will be completed by February 29, 2024.

Categories

Procurement, Suspension & Debarment Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 946124 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.676 Unaccompanied Alien Children Program $1.40M
10.555 National School Lunch Program $52,374