FAC Explorer

Finding 392523 (2023-004)

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Requirement
L
Questioned Costs
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Year
2023
Accepted
2024-04-08
Audit: 302847
Organization: South County Mental Health Center, Inc. (FL)
Auditor: Keefe McCullough

AI Summary

  • Core Issue: The Organization missed key deadlines for submitting financial reports as required by federal guidelines and the pass-through agency.
  • Impacted Requirements: Reports must be submitted within 30 days of the auditor's report or by March 31, 2024, and annual financial statements are due by December.
  • Recommended Follow-up: Management should evaluate staffing in the finance department and consider hiring, reorganizing, or using subcontractors to improve compliance.

Finding Text

Criteria: Per Uniform Guidance 2 CFR 200.512(a), the data collection form and the reporting package shall be submitted to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor's report, or nine months after the end of the Organization’s fiscal year – due by March 31, 2024. In addition, the pass‐through agency requires a copy of the annual audited financial statements and supplementary information by December, after the end of the Organization’s fiscal year end. Condition: The Organization did not comply with these required due dates. Cause: The Organization had significant challenges with the unexpected departure of key personnel in its Finance Department. Effect: The Organization is not following the federal compliance requirement and pass‐through agency deadlines for financial reporting. Recommendation: We recommend that management assesses the staffing needs of the accounting/finance department and plans for increasing capacity through hiring, reorganizing the current responsibilities, or seeking external subcontractors. Questioned Costs: None.

Corrective Action Plan

Action Taken: A perfect storm of the CFO vacancy (however the organization believed the CFO was coming back soon). It was believed the Controller could handle a short period of absence from the CFO. The extended delay of hiring a competent CFO proved too taxing on the Controller which contributed to the Controller’s resignation. A third‐party software conversion in March 2023, a payroll conversion which began in August 2023, and recent turnover of staff in the A/P and A/R positions had placed an enormous load on the controller’s position which is the reason for the late audit and other reports. None of the above is currently an issue and the necessary functions of the accounting and finance areas are performing in a timely manner with the understanding that areas requiring additional analyzes and training will be addressed as we progress into the future. Future reports and audits will be performed in a timely manner.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.958 Block Grants for Community Mental Health Services $4.51M
93.788 Opioid Str $135,000
93.959 Block Grants for Prevention and Treatment of Substance Abuse $50,531
10.555 National School Lunch Program $38,117
10.558 Child and Adult Care Food Program $2,857