Finding 41428 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: The Organization failed to conduct required Single Audits for federal funding exceeding $750,000 in previous years.
  • Impacted Requirements: Non-compliance with 2 CFR 200, which mandates audits for entities receiving significant federal awards.
  • Recommended Follow-Up: The Organization should review all federal awards and ensure compliance with Single Audit requirements moving forward.

Finding Text

Finding 2022-002: U.S. Department of Justice - Crime Victim Assistance No. 16.575 Reporting, Material Weakness Criteria: 2 CFR 200 requires that a non-Federal entity that expends $750,000 or more during the non-Federal entity?s fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of Subpart F-Audit Requirements of the Unform Guidance, issued pursuant to the Single Audit Act Amendment of 1996. Condition: The Organization?s federal funding exceeded $750,000 in previous years but did not comply with 2 CFR 200 which requires a Single Audit and Data Collection Form to be completed and submitted to the Federal Audit Clearing House. Effect: The Organization has not complied with the Single Audit compliance requirements in previous years when their federal funding expended was over the threshold. Questioned Costs: None. Context: During our financial and Single Audit procedures in 2022, we noted the Organization?s federal funding expended in previous years exceeded the threshold requiring a Single Audits and none were performed. Cause: The Organization was not aware that a Single Audit was required to be conducted in previous years. Recommendation: We recommend the Organization review all Federal awards in their entirety to its complying with the Single Audit compliance requirements when accepting federal funding. Response: The Organization is currently reviewing the revenue recognition in prior years to attempt to identify which fiscal years met the threshold requiring a single audit. When the scope of the issue is fully identified, the Organization will reach out to the impacted funding agencies. The cost of performing those audits will be material to Organization?s annual budget, but we will take any steps recommended by the funding agencies.

Corrective Action Plan

Finding 2022-002: U.S. Department of Justice ? Crime Victim Assistance - Assistance Listing No. 16.575. Reporting, Material Weakness Auditor Recommendation: During the December 31, 2022 Financial and Federal Single Audit procedures, it was noted that the Organization?s federal funding expenditures in prior years exceeded the threshold requiring a single audit and none were performed. Corrective Action: The Organization is currently reviewing the revenue recognition in prior years to attempt to identify which fiscal years met the threshold requiring a single audit. When the scope of the issue is fully identified, the Organization will reach out to the impacted funding agencies. The cost of performing those audits will be material to the Organization?s annual budget, but we will take any steps recommended by the funding agencies. Responsible Contact: Lisa Van der Veer (303) 449-8623 ext 124 lisav@safehousealliance.org Responsible Party: CEO & Finance Director Anticipated Completion Date: November 15, 2023 (all funding agencies contacted, any required prior year audits deadline tbd)

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 617870 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $573,553
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $177,193
93.136 Injury Prevention and Control Research and State and Community Based Programs $93,533
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $81,109
93.542 Health Promotion and Disease Prevention Research Centers: Pphf - Affordable Care Act Projects $65,108
93.558 Temporary Assistance for Needy Families $23,690
21.027 Coronavirus State and Local Fiscal Recovery Funds $11,969