FAC Explorer

Finding 39607 (2022-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-26
Audit: 37105
Organization: Friendly House, Inc. (AZ)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization failed to provide proper documentation for two out of three performance reports, despite internal reviews being conducted.
  • Impacted Requirements: Timely submission and accurate reporting of performance data as mandated by the U.S. Department of Health and Human Services.
  • Recommended Follow-up: Management should enhance internal controls and record-keeping processes to prevent future reporting errors.

Finding Text

2022-002 Reporting Noncompliance Reporting Significant Deficiency in Internal Control over Compliance U.S. Department of Health and Human Services Passed-through the Arizona Department of Economic Security Refugee and Entrant Assistance State Administered Federal Financial Assistance Listing/CFDA #93.566; ADES18-191650; October 1, 2020 to September 30, 2021 and October 1, 2021 to September 30, 2022 Criteria: The Organization is required to submit performance reports for each trimester. Reports should be submitted timely in accordance with established requirements and should be reviewed by a supervisory individual prior to submission to ensure accuracy. Condition: Eide Bailly LLP (EB) noted the following internal control issues. ? Although the reports were reviewed in accordance with the internal controls, two out of three reports tested lacked the required documentation to support the reports Cause: Based on discussions with personnel, the errors in reports are due to administrative errors. Effect: Inaccurate information may be provided to the funder regarding performance of the Organization. Questioned Costs: None reported. Context/Sampling: All three of the reports submitted during the year were selected for testing. Repeat Finding from Prior Year: Yes, 2021-002. Recommendation: We recommend the Organization?s management routinely review and consider modifications that would strengthen the internal controls surrounding the reporting process, record-keeping, and the management thereof. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

2022-002 Reporting Noncompliance Reporting Significant Deficiency in Internal Control over Compliance U.S. Department of Health and Human Services Passed-through the Arizona Department of Economic Security Refugee and Entrant Assistance State Administered Federal Financial Assistance Listing/CFDA #93.566; ADES18-191650; October 1, 2020 to September 30, 2021 and October 1, 2021 to September 30, 2022 Condition: Eide Bailly LLP (EB) noted the following internal control issues. ? Although the reports were reviewed in accordance with the internal controls, two out of three reports tested lacked the required documentation to support the reports. Management?s Response and Corrective Action Plan: ? Trimester reports are submitted on February 15, June 15, and October 15 each calendar year. ? Starting with the Trimester Report due on February 15, 2022, the Program Manager will continue the review process of the Trimester Report and maintain the required documentation which supports the report?s data. ? The Department Manager will review the Trimester Report before submission. Documentation showing this review will be maintained. ? During the review process, Management will continue to discuss ways to strengthen our current internal controls. Management will routinely review and consider any needed modifications to or implementation of new policies and procedures that would strengthen internal controls surrounding the reporting process, record-keeping, and the management thereof. ? The trimester report due on October 15, 2021 was prepared and submitted before the auditor?s noted this original finding in our prior year?s audit and before we designed a corrective action plan. ? The Arizona Department of Economic Security (DES) has determined that trimester reports are no longer a requirement for the new grant year effective October 1, 2023. The data referenced in this finding is no longer a requirement of our new grant with DES. Contact Person: Jose J. Vaquera, VP of Client Services Anticipated Completion Date: Effective on October 1, 2023, a new DES grant year, the above-mentioned trimester report is no longer required by funder.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 39608 2022-003
    Material Weakness Repeat
  • 616049 2022-002
    Significant Deficiency Repeat
  • 616050 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $727,404
93.566 Refugee and Entrant Assistance_state Administered Programs $391,870
84.044 Trio_talent Search $294,593
10.559 Summer Food Service Program for Children $235,088
16.575 Crime Victim Assistance $225,954
93.235 Affordable Care Act (aca) Abstinence Education Program $155,033
84.010 Title I Grants to Local Educational Agencies $154,151
17.270 Reintegration of Ex-Offenders $117,182
84.287 Twenty-First Century Community Learning Centers $105,016
10.553 School Breakfast Program $102,670
14.870 Resident Opportunity and Supportive Services - Service Coordinators $71,560
10.569 Emergency Food Assistance Program (food Commodities) $27,567
10.555 National School Lunch Program $26,600
84.424 Student Support and Academic Enrichment Program $19,645
84.002 Adult Education - Basic Grants to States $18,735
84.367 Improving Teacher Quality State Grants $18,509
84.027 Special Education_grants to States $15,262
84.365 English Language Acquisition State Grants $10,731
84.173 Special Education_preschool Grants $1,138