Finding 419310 (2022-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-07

AI Summary

  • Core Issue: The Organization submitted the Single Audit Reporting Package and Data Collection Form late, missing the required deadline.
  • Impacted Requirements: Timely submission is mandated by the Uniform Guidance, specifically within 30 days of the auditor's report or 9 months post fiscal year-end.
  • Recommended Follow-Up: Implement recommendations from previous findings to prevent future delays and ensure compliance with submission timelines.

Finding Text

2022-004 Reporting ? Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC)Federal program and award identification: AllIdentification as a Repeat Finding: Not a repeat findingFinding:The Organization did not file its annual 2022 Single Audit and Data Collection form timely.Criteria:The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first.Condition and context:Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance.During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during September 2023 for the fiscal year ended June 30, 2022.Cause:The Organization hired a contracted CPA to assist in audit preparation. However, the CPA was unavailable due to emergency leave. As a result, the start of the audit was delayed by two months. Additionally, the matters reported in Findings 2022?001 and 2022-002 prolonged the time required to complete the audit.Sample size and population:Sampling was not applicable to this finding.Effect:Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources.Recommendation:While emergencies cannot be prevented, applying the recommendations in Findings 2022-001 and 2022-002 could help alleviate future delays.Question Costs:NoneManagement Response and Corrective Action Plan:See Corrective Action PlanContact Person:Mansour Camara, CFO

Corrective Action Plan

ULMS Corrective Action Plan for FY 21-22 Audit FindingsULMS faced significant challenges with the departure of its longtime CFO two months post fiscal year 2021. In addition, the third-party management company who had been responsible for the Partnership accounting, ceased the relationship abruptly without opportunity to smoothly transition the responsibility in-house to ULMS. Our external auditor does not prepare a Management Letter typically used to communicate with the Board of Directors and Governance issues that may not elevate to a finding. As such, significant findings are reflected in Section III ? Federal Award Findings and Questioned Costs.FY 2021 was the organization?s first single audit reporting requirement. ULMS engaged a third-party CPA to review past audit and current documents needed to commence the FY 2022 audit. However, due to an emergency there was limited independent review of documents prior to being submitted to the auditor due to time constraints. ULMS continues to strengthen its accounting team and has hired a new Controller in July 2023. The new Controller is a licensed CPA with over 30 years accounting experience and over 10 years? experience as an independent auditor for a range of organizations including non-profits. The Controller will collaborate with the CFO to ensure there is accuracy in reporting, especially for major federal programs. Finding #: 2022-004Contact Person: Mansour Camara? Management does not agree that this finding should be noted. As indicated in the beginning of the response, the auditor does not produce a management letter and as such, issues such as late submission to FAC are included as a finding instead of being included in management letter. Management had requested a September 2022 audit start date, but the auditor was only available until October 2022. The Board decided to delay the audit until a CPA could be hired in November 2022 to review the findings of previously issued audit report. The audit was rescheduled to start in December 2022 for an agreed upon March 2023 completion date. Management forwarded the audit schedules to the auditors in January 2023. The auditor further delayed the commencement of ULMS audit to focus on the audit of Urban League Village at Coleman School causing at least an additional 2-month delay. Next, the auditors waited an additional 2 months for a confirmation receipt from a grantor.Actions to be taken: Management will file the audited financials to FAC within 30 days of issuance of the financial statements. Management will ensure subsequent audits are submitted to FAC in a timely manner.

Categories

Reporting

Other Findings in this Audit

  • 419309 2022-002
    Material Weakness Repeat
  • 419311 2022-004
    Material Weakness
  • 419312 2022-004
    Material Weakness
  • 419313 2022-004
    Material Weakness
  • 419314 2022-004
    Material Weakness
  • 419315 2022-002
    Material Weakness Repeat
  • 419316 2022-002
    Material Weakness Repeat
  • 419317 2022-004
    Material Weakness
  • 419318 2022-002
    Material Weakness Repeat
  • 419319 2022-004
    Material Weakness
  • 419320 2022-004
    Material Weakness
  • 419321 2022-004
    Material Weakness
  • 419322 2022-004
    Material Weakness
  • 419323 2022-004
    Material Weakness
  • 419324 2022-004
    Material Weakness
  • 419325 2022-004
    Material Weakness
  • 419326 2022-004
    Material Weakness
  • 419327 2022-002
    Material Weakness Repeat
  • 419328 2022-004
    Material Weakness
  • 419329 2022-001
    Material Weakness Repeat
  • 419330 2022-001
    Material Weakness Repeat
  • 419331 2022-002
    Material Weakness Repeat
  • 419332 2022-002
    Material Weakness Repeat
  • 419333 2022-003
    - Repeat
  • 419334 2022-003
    - Repeat
  • 995751 2022-002
    Material Weakness Repeat
  • 995752 2022-004
    Material Weakness
  • 995753 2022-004
    Material Weakness
  • 995754 2022-004
    Material Weakness
  • 995755 2022-004
    Material Weakness
  • 995756 2022-004
    Material Weakness
  • 995757 2022-002
    Material Weakness Repeat
  • 995758 2022-002
    Material Weakness Repeat
  • 995759 2022-004
    Material Weakness
  • 995760 2022-002
    Material Weakness Repeat
  • 995761 2022-004
    Material Weakness
  • 995762 2022-004
    Material Weakness
  • 995763 2022-004
    Material Weakness
  • 995764 2022-004
    Material Weakness
  • 995765 2022-004
    Material Weakness
  • 995766 2022-004
    Material Weakness
  • 995767 2022-004
    Material Weakness
  • 995768 2022-004
    Material Weakness
  • 995769 2022-002
    Material Weakness Repeat
  • 995770 2022-004
    Material Weakness
  • 995771 2022-001
    Material Weakness Repeat
  • 995772 2022-001
    Material Weakness Repeat
  • 995773 2022-002
    Material Weakness Repeat
  • 995774 2022-002
    Material Weakness Repeat
  • 995775 2022-003
    - Repeat
  • 995776 2022-003
    - Repeat

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $8.27M
21.026 Arpa- Haf Counseling Sustainability Grant $249,949
21.027 Ulms Young Adult Shelter $214,025
21.019 Coronavirus Relief Fund $124,710
17.258 Wioa Title 1b Adult Services, Career Services Program $122,043
17.259 Wioa Py21/fy22- Title 1b Youth Services, Out-of-School $110,859
16.726 Project Ready Mentor Vi $98,113
17.261 Pathways for Youth $67,615
93.185 Cdc Vaccine Equity $41,000
99.U19 Housing Stability Counseling Program $37,128
14.316 Housing Counsing Counseling Training Program $30,022
97.024 Emergency Food and Shelter Program $13,158