Finding 508358 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-11-19

AI Summary

  • Core Issue: The Organization missed the deadline for submitting its single audit reporting package, filing it two months late.
  • Impacted Requirements: This delay violates 2 U.S. CFR 200.512, which mandates submission within 30 days of the audit or 9 months after the fiscal year end.
  • Recommended Follow-Up: Improve financial reporting processes to ensure timely submission of the audit package to the FAC.

Finding Text

Criteria: In accordance with 2 U.S. Code of Federal Regulation (CFR) 200.512, the Organization must submit its single audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) no later than 30 days after the date of its audited financial statements or 9 months after the fiscal year end, whichever occurs earlier. Condition and Context: The federal reporting deadline for the Organization's December 31, 2023 reporting package was September 30, 2024; however, the organization did not issue its single audit reporting package until November 2024. Effect: Late filing has resulted in noncompliance with timely submission of financial information to grantor agencies. Cause: The Organization did not have adequate procedures to ensure a timely filing process so that it can submit its single audit reporting package to the FAC no later than nine months after fiscal-year end. Recommendation: The organization should improve its financial reporting process so that it can submit its single audit reporting package to the F AC no later than nine months after the fiscal year end. Management Response: Refer to corrective action plan.

Corrective Action Plan

Finding 2: Delayed Single Audit Delivery Background: The delivery of our single audit has been delayed due to staffing challenges and the need for improved coordination. With our organization’s expansion post-pandemic, increased hiring has required administrative staff to adapt to complex compliance requirements. Corrective Actions: 1. Audit Timeline Adjustment o Action: Begin the audit process no later than April each year to allow sufficient time for completion and submission. o Responsibility: Executive Team and Audit Committee o Timeline: Adjust the audit schedule for the upcoming year immediately. 2. Training for Administrative Staff o Action: Provide targeted compliance and audit process training for administrative staff to improve their proficiency and efficiency. o Responsibility: Administration o Timeline: Start training sessions within 60 days. 3. Regular Check-ins with Auditors o Action: Schedule regular monthly check-ins with auditors to ensure alignment on timelines and address potential issues early. o Responsibility: Finance Department o Timeline: Implement monthly check-ins starting [insert date]. 4. Resource Allocation o Action: Assess and allocate additional resources to support the audit process, ensuring staff have the necessary tools and support. o Responsibility: Administration o Timeline: Complete resource assessment within 60 days. ________________________________________ Conclusion AYUDA, INC. is committed to addressing these findings with urgency and transparency. By implementing the corrective actions outlined above, we aim to strengthen our financial management and compliance processes, ensuring these issues do not recur. We appreciate the auditors' feedback and are eager to demonstrate our improvements in the upcoming audit cycle. Approval: ________________________________________ Miguel Chacon Co-Executive Director

Categories

Reporting

Other Findings in this Audit

  • 508359 2023-002
    Material Weakness
  • 1084800 2023-002
    Material Weakness
  • 1084801 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $376,080
14.239 Home Investment Partnerships Program $154,329
93.879 Medical Library Assistance $29,965
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $16,719
93.426 The National Cardiovascular Health Program $16,507