Finding 504144 (2022-009)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-10-30

AI Summary

  • Core Issue: Reports were submitted late and lacked adequate documentation, violating federal regulations.
  • Impacted Requirements: Timely submission and accurate reporting of financial data in accordance with the award's terms.
  • Recommended Follow-Up: Implement controls to ensure timely reporting and proper documentation for all submitted amounts.

Finding Text

Criteria: Federal regulations award recipients to submit semi-annual and annual reports in accordance with timelines defined in the award. Amounts reported are required to be complete, accurate and prepared in accordance with the entity’s basis of accounting and be supported by financial statements and schedule of expenditures of federal awards. Condition: The Associations controls were not effective to ensure that reports were submitted timely and that amounts reported were supported by adequate documentation. • The December 31, 2022 annual SF-425 was due April 30, 2023. The report was submitted May 17, 2023. • The December 31, 2022 annual SF-425 overstated total expenditures by $8,634 for award number 10CH01204402. Questioned Costs: None. Context: Our procedures included testing four SF-429 (Real Property Status Reports) and four SF-425 (Federal Financial Report) reports that were required as part of the grant contract provisions and federal reporting requirements. Cause: The Association experienced challenges in implementing a new financial reporting system in 2021 that continued throughout the 2022 fiscal year. As a result, there was no reconciliation or support for amounts reported. Effect: Incorrect financial and non-financial data submitted via these reports may result in potential errors in analysis or other determinations by the federal grantor. This finding did not result in questioned costs since the reports were not used to request reimbursement. Recommendation: We recommend that the Association establishes controls that require timely reporting and support amounts reported. View of Responsible Officials: There is no disagreement with this audit finding.

Corrective Action Plan

Recommendation: We recommend that the Association establishes controls that require timely reporting and support amounts reported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment Fiscal staff has been trained on reporting requirements, including required supporting documentation and deliverable timelines. Root Cause At the end of 2022, the long-time fiscal director left the agency. With attrition in the fiscal department, other staff took responsibility for the reporting duty. This was complicated due to a lack of knowledge of the new software system and previous lack of all information being migrated into the new system, which contributed to pulling reports that were thought to be accurate, but were not. Prior to the deadline for this report, OCCDA reached out multiple times to OHS staff for assistance in transitioning permissions to complete the report as well as return funds. Included in these conversations was a direct request as to whether the agency should be concerned if the report was late, to which OHS responded to go through these processes and make a note in the report about the lateness. Action Taken Due to the new staff, we worked with OHS fiscal staff who instructed us to not submit until the money that was due to be returned had been received in the payment management system. Moving forward we are running accurate and timely reports that will allow us ample time to complete these report submissions. Reporting has been on time since this late submission.

Categories

Reporting

Other Findings in this Audit

  • 504141 2022-001
    Material Weakness Repeat
  • 504142 2022-007
    Significant Deficiency Repeat
  • 504143 2022-008
    Significant Deficiency
  • 504145 2022-002
    Significant Deficiency Repeat
  • 504146 2022-003
    Significant Deficiency Repeat
  • 504147 2022-004
    Significant Deficiency
  • 504148 2022-005
    Significant Deficiency
  • 504149 2022-006
    Significant Deficiency
  • 504150 2022-001
    Material Weakness Repeat
  • 504151 2022-007
    Significant Deficiency Repeat
  • 504152 2022-008
    Significant Deficiency
  • 504153 2022-009
    Significant Deficiency
  • 504154 2022-002
    Significant Deficiency Repeat
  • 504155 2022-003
    Significant Deficiency Repeat
  • 504156 2022-004
    Significant Deficiency
  • 504157 2022-005
    Significant Deficiency
  • 504158 2022-006
    Significant Deficiency
  • 504159 2022-001
    Material Weakness Repeat
  • 504160 2022-007
    Significant Deficiency Repeat
  • 504161 2022-008
    Significant Deficiency
  • 504162 2022-009
    Significant Deficiency
  • 504163 2022-002
    Significant Deficiency Repeat
  • 504164 2022-003
    Significant Deficiency Repeat
  • 504165 2022-004
    Significant Deficiency
  • 504166 2022-005
    Significant Deficiency
  • 504167 2022-006
    Significant Deficiency
  • 1080583 2022-001
    Material Weakness Repeat
  • 1080584 2022-007
    Significant Deficiency Repeat
  • 1080585 2022-008
    Significant Deficiency
  • 1080586 2022-009
    Significant Deficiency
  • 1080587 2022-002
    Significant Deficiency Repeat
  • 1080588 2022-003
    Significant Deficiency Repeat
  • 1080589 2022-004
    Significant Deficiency
  • 1080590 2022-005
    Significant Deficiency
  • 1080591 2022-006
    Significant Deficiency
  • 1080592 2022-001
    Material Weakness Repeat
  • 1080593 2022-007
    Significant Deficiency Repeat
  • 1080594 2022-008
    Significant Deficiency
  • 1080595 2022-009
    Significant Deficiency
  • 1080596 2022-002
    Significant Deficiency Repeat
  • 1080597 2022-003
    Significant Deficiency Repeat
  • 1080598 2022-004
    Significant Deficiency
  • 1080599 2022-005
    Significant Deficiency
  • 1080600 2022-006
    Significant Deficiency
  • 1080601 2022-001
    Material Weakness Repeat
  • 1080602 2022-007
    Significant Deficiency Repeat
  • 1080603 2022-008
    Significant Deficiency
  • 1080604 2022-009
    Significant Deficiency
  • 1080605 2022-002
    Significant Deficiency Repeat
  • 1080606 2022-003
    Significant Deficiency Repeat
  • 1080607 2022-004
    Significant Deficiency
  • 1080608 2022-005
    Significant Deficiency
  • 1080609 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.870 Maternal, Infant and Early Childhood Homevisiting Grant Program $107,617
93.600 Head Start $107,048
93.590 Community-Based Child Abuse Prevention Grants $28,710
10.558 Child and Adult Care Food Program $17,968