Finding 480260 (2023-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-08-01
Audit: 316492
Auditor: Marcum LLP

AI Summary

  • Core Issue: The reporting package and data collection form were submitted late, violating the Uniform Guidance deadlines.
  • Impacted Requirements: Timely submission is crucial for compliance with federal reporting standards, affecting all federal programs managed by Human Relations Area Files, Inc.
  • Recommended Follow-Up: Management should enhance staffing and oversight in finance to ensure timely completion of accounting records and reporting packages.

Finding Text

Finding 2023-002 – Material Weakness – Late Submission of Reporting Package and Data Collection Form – National Science Foundation – Social, Behavioral, and Economic Sciences (CFDA # 47.075) Department of Defense – The University of Texas Health Science Center of Houston pass through – Basic Scientific Research (CFDA # 12.431) Criteria – The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. Condition – The Federal reporting deadline for the Single Audit Reporting Package was March 31, 2024; however, Human Relations Area Files, Inc. did not issue its Single Audit Reporting Package on time. Cause – Due to employee staffing constraints and lack of a higher level of supervisory or review function in the finance and accounting department, the accounting records were not completed in a timely manner. Effect of Potential Effect – The late submission of the reporting package affects all Federal programs administered by Human Relations Are Files, Inc. This finding is a material weakness in internal control over compliance and noncompliance with the Uniform Guidance. Untimely reports can prevent the Organization’s funders to make appropriate decisions regarding the Organization’s programs. Questioned Costs – None. Context – The Schedule of Expenditures of Federal Awards was not completed in a timely manner causing the audit to be delayed and late. Recommendation – Management should make the proper changes to its finance functions to ensure it has sufficient staffing resources to keep its accounting records up to date for its federal programs. Views of Responsible Officials – See Corrective Action Plan.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 480259 2023-002
    Material Weakness
  • 480261 2023-002
    Material Weakness
  • 480262 2023-003
    Material Weakness
  • 480263 2023-003
    Material Weakness
  • 480264 2023-003
    Material Weakness
  • 1056701 2023-002
    Material Weakness
  • 1056702 2023-002
    Material Weakness
  • 1056703 2023-002
    Material Weakness
  • 1056704 2023-003
    Material Weakness
  • 1056705 2023-003
    Material Weakness
  • 1056706 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
47.075 Social, Behavioral, and Economic Sciences $457,097
12.431 Basic Scientific Research $298,884