Finding 397709 (2023-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-05-17

Audit: 306556

Organization: Operation Care (CA)

Auditor: Richardson & Company LLP

AI Summary

Core Issue: The Organization submitted required financial reports two months late, missing the March 31, 2024 deadline.
Impacted Requirements: Compliance with federal reporting requirements under 2 CFR §200.512.
Recommended Follow-up: Ensure timely preparation and submission of financial statements to avoid future penalties and maintain eligibility for federal awards.

Finding Text

Finding 2023-002 – Significant Deficiency Federal Grantor: U.S. Department of Justice Passed-through: California Governor’s Office of Emergency Services Pass-through Grantor’s No.: Various Compliance Requirement: Reporting Condition: The Organization submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in May 2024, 2 months after it was due. Criteria: The Organization was required to submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than March 31, 2024, nine months after the fiscal year-end (2 Code of Federal Regulations §200.512). Effect: Federal awarding agencies may deny future federal awards or subject the Organization to additional cash monitoring requirements. This finding was not a result of internal control over individual federal programs and, accordingly, did not have a direct and material effect on the reporting requirements over the Organization’s major federal programs. Cause: The Organization failed to prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner due to turnover in personnel. Recommendation: The Organization needs to ensure that it can close its books and submit its audited financial statements and single audit to the federal audit clearinghouse no later than the statutory reporting deadline. Management’s Response: Management’s response to the finding is discussed in the attached Corrective Action Plan.

Corrective Action Plan

Finding Reference Number: 2023-002 Description of Finding: The Organization submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in May 2024, 2 months after it was due. Statement of Concurrence or Nonconcurrence: Operation Care agrees with the finding as stated above. Corrective Action: Operation Care will ensure that all future Audited Financial Statements and Single Audit Reports are submitted to the federal clearing house no later than March 31st of each year. If Operation Care is needing an extension, the Fiscal Director will work with the Auditors to ensure that an extension is filed so Operation Care will stay in compliance. The Fiscal Director will also cross train the Executive Director on SEFA updates and Audited Financial Statements to ensure if there is turnover in personnel, someone at Operation Care will be able to provide the proper documentation to the Auditors in a timely manner. Name of Contact Person: Ashley Carnicello, Executive Director, (209) 223-2897 ashley@operationcare.org Bruce Platt, Fiscal Director (209) 223-2897 bruce@operationcare.org Projected Completion Date: The Fiscal Director will cross train the Executive Director by the end of the Fiscal Year, June 30, 2024 to ensure timely submission of Audited Financial Statements and Single Audit Reports. In addition, the Fiscal Director and Executive Director will begin submitting requests for Auditors by September 30th of each year. This will allow Operation Care to begin the Audit process earlier, therefore making the March 31st deadline more feasible.

Other Findings in this Audit

397708 2023-001

Significant Deficiency
974150 2023-001

Significant Deficiency
974151 2023-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
16.575	Crime Victim Assistance	$63,332
97.024	Emergency Food and Shelter National Board Program	$5,085
93.671	Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services	$4,150