Finding 515532 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-12-18
Audit: 333268
Organization: Restoration Society, INC (NY)
Auditor: Bonadio & CO LLP

AI Summary

  • Issue: RSI missed the deadline for auditing major federal awards and submitting the Data Collection Form for 2022.
  • Requirements Impacted: Compliance with the Uniform Guidance, which mandates audits for organizations spending over $750,000 in federal funds.
  • Follow-up: Implement new policies to ensure timely completion and submission of the Data Collection Form as required.

Finding Text

Condition – RSI did not have an audit performed timely of its major federal award programs and did not timely submit a Data Collection Form to the Federal Audit Clearinghouse for the year ended December 31, 2022. Criteria – As required under the Uniform Guidance, organizations that spend more than $750,000 of federal funds are required to have an audit in accordance with the Uniform Guidance and submit a Data Collection Form through the Federal Audit Clearinghouse within the earlier of nine months after year end or 30 days after its audit opinion date. Cause – The audit under Uniform Guidance for the year ended December 31, 2022 was not completed timely due to staff turnover. Effect – RSI did not comply with reporting regulations required by the Uniform Guidance. Recommendation – We recommend RSI enact policies and procedures to ensure that the Data Collection Form be completed and submitted to the Federal Audit Clearinghouse with the required timeframe specified by the Uniform Guidance. Management’s Response – Management has initiated policies and procedures to ensure that the required reporting regarding federal expenditures is completed in accordance with the Uniform Guidance.

Corrective Action Plan

Recommendation: The auditors recommended that outsourced accounting personnel develop policies and procedures to annually engage an audit firm to perform the audit of its major federal award programs. Action Taken: Management agreed with this recommendation. Outsourced accounting personal are timely engaging auditors to perform major federal award audits.

Categories

Reporting

Other Findings in this Audit

  • 515531 2022-001
    Material Weakness
  • 1091973 2022-001
    Material Weakness
  • 1091974 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $847,432
14.231 Emergency Solutions Grant Program $410,444
93.778 Medical Assistance Program $326,100