Finding 508374 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-11-19

Audit: 328982

Organization: Life Management, Inc. (NJ)

Auditor: Pkf O'Connor Davies LLP

AI Summary

Core Issue: LMI's internal control process for reviewing semi-annual financial reports is ineffective, leading to late submissions.
Impacted Requirements: The reports were not properly reviewed by the Executive Director, violating grant agreement timelines.
Recommended Follow-Up: Implement internal controls to ensure timely and compliant review and submission of federal award reports.

Finding Text

Condition: Based on our audit procedures, we noted that LMI’s internal control process for reviewing and submitting the semi-annual financial reports due under the grant agreement was not working effectively. Two of the semi-annual financial reports submitted during the year under audit were not properly reviewed by the Executive Director and were submitted later than the due date. Cause: The ineffective report review process was a result of LMI not having set controls as it relates to the federal award. Repeat Finding: No Recommendation: We recommend that LMI implements certain internal control processes to ensure that reporting related to federal awards are reviewed and submitted in compliance with grant agreements. Views of Responsible Officials: See Corrective Action Plan.

Corrective Action Plan

Corrective Action Plan • A full year calendar will be constructed, reminding Barbara Havlik, Eexecutive Director of Life Management, Inc., of the dates for which reports are due with regard to Federal Grant Agreements/Awards. The calendar will also have reminders; including: o A reminder will go out to RPM developer, Joe Portelli, three weeks prior to the report due date, so that a meeting can be set up within a week to review and prepare for report submission. o A copy of the report for submission will be reviewed by Barbara Havlik and Joe Portelli two days prior to the submission date, and both parties shall retain a copy of report to be submitted. • The report will be submitted on time by Joe Portelli, according to Federal Requirements, and Barbara Havlik will check with Joe Portelli to make certain that Federal Agency was in fact received the report.

Other Findings in this Audit

1084816 2023-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
15.929	Save America's Treasures	$500,000
93.052	National Family Caregiver Support, Title Iii, Part E	$86,119
93.044	Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers	$31,053