Finding 398383 (2022-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-05-23
Audit: 307068
Organization: Farestart (WA)

AI Summary

  • Core Issue: The Organization missed the deadline for filing the 2022 Single Audit and Data Collection Form, which was due on September 30, 2023.
  • Impacted Requirements: The Uniform Guidance mandates timely submission of audit reports to the Federal Audit Clearinghouse within nine months after the fiscal year ends.
  • Recommended Follow-Up: Train staff on federal reporting requirements and create a centralized system for tracking government grants and contracts.

Finding Text

Identification as a Repeat Finding: Not a repeat finding Finding: The Organization did not file its annual 2022 Single Audit and Data Collection Form timely. Criteria: The Uniform Guidance requires submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse nine months after the end of the fiscal year. As such FareStart’s 2022 Data Collection Form was due September 30, 2023. Sample Size and Population: Sampling was not applicable to this finding. Condition and Cause: As described in Finding 2022-002, errors resulting in the misstatement and misidentification of major programs contributed to delays in audit completion. Additionally, as disclosed in Note 16, the Organization eliminated approximately 39% of its workforce 2023, which reduced its capacity to respond to audit requests in advance of the federal deadline. Effect: The Data Collection Form was submitted late. Recommendations:  Educate staff regarding federal award reporting requirements.  Maintain centralized documentation of government grants that identifies the source of funding and nature of the contract. Questioned Costs: None Management Response: Management response is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Carolyn Bardon, Senior Vice President of Finance  Develop and implement a process to ensure that all public contracts are accrued for monthly.

Corrective Action Plan

FareStart has also established protocols for monitoring and tracking key deadlines related to the submission of audit documentation, including the Single Audit Reporting Package and Data Collection Form. Management has allocated resources as necessary to ensure that audit requests are addressed promptly, even during periods of staffing transition or reduced capacity. Ongoing monitoring and evaluation will be conducted to ensure the effectiveness of these measures. Progress updates on the implementation of the corrective action plan will be provided to FareStart's management team and Board of Directors and any significant developments or challenges will be promptly communicated for appropriate guidance and decision-making. By proactively addressing the identified deficiencies and implementing robust corrective measures, FareStart is committed to strengthening its internal controls, enhancing compliance with federal program requirements, and ensuring the timely and accurate reporting of financial information.

Categories

Reporting

Other Findings in this Audit

  • 398382 2022-002
    Material Weakness Repeat
  • 398384 2022-002
    Material Weakness Repeat
  • 398385 2022-003
    Material Weakness
  • 398386 2022-003
    Material Weakness
  • 398387 2022-003
    Material Weakness
  • 974824 2022-002
    Material Weakness Repeat
  • 974825 2022-003
    Material Weakness
  • 974826 2022-002
    Material Weakness Repeat
  • 974827 2022-003
    Material Weakness
  • 974828 2022-003
    Material Weakness
  • 974829 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $181,805
21.027 Coronavirus State and Local Fiscal Recovery Funds $130,697