Finding 403143 (2021-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-06-27
Audit: 310266
Organization: Consumer Directed Choices, Inc. (NY)

AI Summary

  • Core Issue: CDChoices failed to submit the Single Audit Report on time as required by 2 CFR 200.512.
  • Impacted Requirements: The organization did not complete an independent audit within the mandated timeframe.
  • Recommended Follow-Up: Management should establish internal controls to ensure timely audits in the future.

Finding Text

2021-001: Single Audit Report Submission Criteria or specific requirement (including statutory, regulatory, or other citation): In accordance with 2 CFR 200.512, CDChoices was required to complete and submit the data collection form within the earlier of 30 days after receipt of the auditor’s report, or nine months after the end of the audit period. Condition and Context: CDChoices did not obtain an independent audit within the required period for submission. Cause: Lack of internal controls to ensure an independent audit was completed timely. Effect or Potential Effect: CDChoices did not comply with the requirements of 2 CFR 200.512. Recommendation: Management should develop and implement internal controls to ensure completion of a timely audit should the need for such arise in the future. Views of Responsible Officials: As noted in the corrective action plan, management agrees with this finding

Corrective Action Plan

CDChoices was under the assumption that the guidelines for a single audit were based on Federal expenditures of greater than $750,000. CDChoices management reached out to our former auditors, as well as the Health Resources and Service Administration, and the Federal Audit Clearinghouse for clarification as to the requirement for a single audit based on the receipt of the Provider Relief Funding rather than Federal expenditures and were told that a single audit was only required if an organization spent more than $750,000 in a calendar year. We now know that the requirement for Provider Relief Funding is based on the receipt of the funds in a year. Should CDChoices receive federal funding in the future, the Controller, Brian Frasier, will research deadlines for submission and implement procedures to ensure the completion of a timely audit. This action will be completed should CDChoices receive federal funding in the future

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 979585 2021-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $823,173