Finding 521243 (2023-003)

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Requirement
L
Questioned Costs
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Year
2023
Accepted
2025-02-04
Audit: 341185
Organization: Centers for New Horizons, Inc. (IL)
Auditor: Porte Brown LLC

AI Summary

  • Issue: The audit reporting package and data collection form were not submitted on time to the FAC, violating Uniform Guidance.
  • Impact: The Organization will lose its low-risk auditee status for the next two years.
  • Next Steps: Submit the audit reporting package and data collection form promptly once the audit is completed.

Finding Text

Condition: The audit reporting package and data collection form for the year ended June 30, 2023 was not submitted to the FAC within the timeframe as required by Uniform Guidance. Criteria: The auditee is responsible for ensuring the timely submission of the audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC). Cause: Due to the transition of staff and accounting systems throughout the year, the Organization had inconsistent accounting records requiring a manual compilation of the general ledger activity during the year. Effect: The Organization will not qualify as a low-risk auditee for two years. Recommendation: The Organization should submit the audit reporting package and data collection form as soon as the audit is available. View of Responsible Officials: The Organization agrees with the finding, see corrective action plan.

Corrective Action Plan

The Organization has taken steps to address this problem by hiring additional staff in the accounting department. Additionally, the accounting and operations departments are now separate and distinct departments. This allows for the appropriate individuals to have more time to concentrate on Alternatives finances and improve the timing and accuracy of the monthly and year-end financial close. The Organization experienced substantial growth of programmatic activities which required the department to focus on ongoing maintenance and tracking. The department expects to be able to take the results of these changes and properly close out the June 30, 2024 year end.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $1.89M
14.881 Moving to Work Demonstration Program $1.76M
21.027 Coronavirus State and Local Fiscal Recovery Funds $574,600
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $573,159
10.558 Child and Adult Care Food Program $210,684
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $191,854
93.558 Temporary Assistance for Needy Families $158,951
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $148,417
17.259 Wia Youth Activities $118,312
17.258 Wia Adult Program $100,218
93.052 National Family Caregiver Support, Title Iii, Part E $90,399
93.575 Child Care and Development Block Grant $87,031
16.575 Crime Victim Assistance $74,800
17.278 Wia Dislocated Worker Formula Grants $66,710
14.218 Community Development Block Grants/entitlement Grants $43,971
93.667 Social Services Block Grant $33,140