Finding Text
Statement of condition:
The Organization has been challenged in recent years to provide for the timely reporting of financial activities to its funding sources; particularly the financial statement audit and major Federal program compliance in accordance with the Federal Single Audit Act. Timely financial reporting is a critical internal control feature for the Board and management to provide for prudent oversight of program operations. Further, many of the Organization’s grants and contracts have accountability to an approved budget from the funding source.
Criteria:
The State of Rhode Island, Department of Behavioral Healthcare, Developmental Disabilities, and Hospitals as well as the Federal 45 CFR 75 Subpart F, require financial and programmatic compliance reporting via an external audit within nine (9) months of the fiscal year-end.
Cause of condition:
There was a lack of clarity among the subcontractors regarding the reporting responsibilities for grant activities for the funding agencies.
Effect of condition and context:
Non-compliance with the State of Rhode Island, Department of Behavioral Healthcare, Developmental Disabilities, and Hospitals and the Federal 45 CFR 75 Subpart F reporting requirements.
Recommendation:
We recommend the Organization provide for timely audited financial and program compliance reporting consistent with the State of Rhode Island, Department of Behavioral Healthcare, Developmental Disabilities, and Hospitals as well as the Federal 45 CFR 75 Subpart F.