Finding 400679 (2023-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-06-12
Audit: 308734
Organization: Aloun Foundation Inc. (HI)

AI Summary

  • Core Issue: The Project failed to submit its December 31, 2022 financial audit to the Federal Audit Clearinghouse within the required 30 days.
  • Impacted Requirements: This non-compliance violates Uniform Guidance 2 CFR 200.512(a), which mandates timely submission of financial audits.
  • Recommended Follow-Up: Implement new policies and procedures to ensure future audits are submitted on time; management is already taking steps to address this issue.

Finding Text

Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Project's December 31, 2022 financial statement audit was not submitted to the Federal Audit Clearinghouse within 30 calendar days after the receipt of the auditor's report. Cause Management within the Project erroneously did not authorize submission of the financial statements to the Federal Audit Clearinghouse, thus the financial statements were not submitted to the Federal Audit Clearinghouse within the nine-month or 30-day window. Effect of Condition The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.

Corrective Action Plan

Name of auditee: Aloun Foundation Inc. Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: January 1, 2023 through December 31, 2023 CAP prepared by: Name: Craig Watase Position: President Telephone: (808) 735-9099 Finding 2023-001 Comments: Management agrees with the finding. Actions: Management will implement policies and procedures to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Anticipated completion date: March 31, 2024

Categories

Reporting

Other Findings in this Audit

  • 400680 2023-001
    Significant Deficiency
  • 977121 2023-001
    Significant Deficiency Repeat
  • 977122 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.18M
10.427 Rural Rental Assistance Payments $231,636