Finding 503600 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2023
Accepted
2024-10-24
Audit: 325788
Organization: Safequest Solano, Inc. (CA)

AI Summary

  • Core Issue: The Agency missed the deadline for submitting the required Data Collection Form (DCF) and reported inaccurate performance numbers for multiple grants.
  • Impacted Requirements: Noncompliance with federal reporting regulations, risking future funding and undermining accountability for federal expenditures.
  • Recommended Follow-Up: Implement stronger internal controls, designate a responsible party for DCF submissions, and conduct regular training and reviews to ensure compliance.

Finding Text

2023-002 Timely Submission of Single Audit Report and Inaccurate Performance Report Numbers Reported Assistance Listing Number: 16.575 Federal Agency: United States Department of Justice Federal Award Identification: Unknown Type of Finding: Material Weakness Compliance Requirement: Reporting Criteria: According to the OMB Compliance Supplement, Part 6 and 2 CFR 200.512 (a)(1), non-federal entities that expend $750,000 or more in federal awards during a fiscal year are required to submit a complete and accurate Data Collection Form (DCF) and a Single Audit report package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. The DCF is a critical element in ensuring transparency and accountability for the use of federal funds. Additionally, per the Uniform Guidance (200.302) nonfederal entities are required to maintain effective internal controls and proper records to support the financial and performance data used in reporting to federal agencies. This includes maintaining records and documentation to substantiate reported performance and financial information to ensure accuracy, completeness and reliability. Condition: The Agency did not submit the required DCF for the fiscal year ended June 30, 2023, by the required deadline. The Agency also submitted inaccurate reporting for the following grants and timeframes: DV20201438 (4th Quarter), DV22221438 (1st & 2nd Quarters), RC21321438 (3rd Quarter), and RC22331438 (2nd & 3rd Quarter). Cause of Condition: The Agency failed to appropriately monitor and assess its federal expenditures, resulting in the oversight of surpassing the threshold that necessitates a single audit. As a consequence, they have missed the deadline for submission of the required DCF. Also, the Agency's database is not locked from editing and is susceptible to changes leading to inaccuracies when regenerating the report. Counselors responsible for recording their intake numbers are not submitting their numbers on time resulting in untimely recording. The Agency does not have a formal process or procedure in place to ensure that supporting documentation and schedules used in the preparation of performance reports are retained and organized for future reference and audit purposes. Potential Effect of Condition: Failure to submit the DCF on time resulted in noncompliance with federal regulations, which could lead to the potential withholding of future federal funding or other sanctions. It also undermines the Agency's compliance status and may affect the entity's standing with grantor agencies and other stakeholders. Without proper documentation, there is an increased risk of inaccurate or incomplete performance reporting, which may lead to noncompliance with grant requirements. Additionally, the lack of substantiation for reported amounts impairs the Agency's ability to demonstrate compliance with grant objectives and may result in potential audit findings. Questioned Costs: Not quantifiable. Recommendation: We recommend that the Agency implements stronger internal controls and procedures to ensure timely submission of the DCF. This could include designating a responsible party for tracking and submitting the DCF, creating a timeline and checklist for required submissions, and conducting periodic reviews to ensure compliance with deadlines. Additionally, the Agency should provide training to relevant staff on the importance of meeting federal compliance requirements. The client has already implemented a new database system to avoid the cumbersomeness of generating accurate numbers from the old system; however, we recommend a designated employee to ensure counselors are inputting their performance numbers on time. We also recommend a quarterly review of performance numbers before they are reported. Views of Responsible Official: Management agrees with the finding and will implement corrective action.

Corrective Action Plan

SafeQuest Solano will implement stronger internal controls and procedures to ensure timely submission of the DCF. This will include designating a responsible party for tracking and submitting the DCF, creating a timeline and checklist for required submissions, and conducting periodic reviews to ensure compliance with deadlines. Additionally, SafeQuest Solano will provide training to relevant staff on the importance of meeting federal compliance requirements. SafeQuest Solano has already implemented a new database system.

Categories

Questioned Costs Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 503599 2023-001
    Material Weakness
  • 503601 2023-001
    Material Weakness
  • 503602 2023-002
    Material Weakness
  • 503603 2023-001
    Material Weakness
  • 503604 2023-002
    Material Weakness
  • 503605 2023-001
    Material Weakness
  • 503606 2023-002
    Material Weakness
  • 503607 2023-001
    Material Weakness
  • 503608 2023-002
    Material Weakness
  • 1080041 2023-001
    Material Weakness
  • 1080042 2023-002
    Material Weakness
  • 1080043 2023-001
    Material Weakness
  • 1080044 2023-002
    Material Weakness
  • 1080045 2023-001
    Material Weakness
  • 1080046 2023-002
    Material Weakness
  • 1080047 2023-001
    Material Weakness
  • 1080048 2023-002
    Material Weakness
  • 1080049 2023-001
    Material Weakness
  • 1080050 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $101,100
93.136 Injury Prevention and Control Research and State and Community Based Programs $48,955
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $26,810