Finding 406202 (2022-002)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2024-07-02

AI Summary

  • Core Issue: The organization failed to submit the single audit reporting package on time, missing the deadline by twelve months due to incomplete accounting records and scheduling challenges.
  • Impacted Requirements: Noncompliance with 2 CFR 200.512, which mandates timely submission of audit data to the Federal Audit Clearinghouse.
  • Recommended Follow-Up: Hire experienced accounting staff and establish procedures to ensure timely completion and submission of future audits.

Finding Text

Noncompliance with Laws and Regulations. Criteria – Under 2 CFR 200.512, auditee must submit single audit data collection and reporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of auditor’s report or nine months after the end of audit period. Condition – Accounting records were not complete and not readily available to schedule the audit. Also, major health challenges to the Executive Director family member, and audit firm availability contributed to the scheduling delays. The single audit reporting package was submitted twelve months after the June 30, 2023, due date. Context – Management is responsible for reviewing accounting data for making necessary adjustments, and preparation of financial statements for timely audit engagement and submission to the Federal Audit Clearinghouse. Cause – this is the first Single Audit for the Organization, experienced turnover of key staff within the accounting department and their lack of understanding of the extent of Single Audit, and major health challenges to the Executive Director family member. Recommendation – We recommend that the Organization obtain appropriate experienced accounting staff, implement systems and procedures to ensure timely completion of the Single Audit and the submission of the reporting package to the Federal Clearinghouse. View of Responsible Officials and Corrective Action Plan – This is the first Single Audit for our Organization. To ensure that the Organization complies with the laws and regulations of the Single Audit, the CFO will track, review, and verify all federal and non-federal awards. The CFO will also review the closing process of the financial statements and make adjustments that are required to finalize them. The CFO will ensure that the Organization submits timely single audit data collection and reporting package to the Federal Audit Clearinghouse.

Corrective Action Plan

This is the first Single Audit for our Organization. To ensure that the Organization complies with the laws and regulations of the Single Audit, the CFO will track, review, and verify all federal and non-federal awards. The CFO will also review the closing process of the financial statements and make adjustments that are required to finalize them. The CFO will ensure that the Organization submits timely single audit data collection and reporting package to the Federal Audit Clearinghouse.

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $3.16M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $511,084
16.575 Crime Victim Assistance $177,219
16.017 Sexual Assault Services Formula Program $10,412
16.029 Office on Violence Against Women Special Projects $1,611