Finding 522193 (2023-002)

-
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-02-05
Audit: 341401
Organization: Hannas House (CA)

AI Summary

  • Core Issue: The Organization submitted its Single Audit reporting packages for 2022 and 2023 late, violating federal requirements.
  • Impacted Requirements: This non-compliance with 2 CFR §200.508(a) and §200.512(a) could lead to penalties and affect eligibility for federal funding.
  • Recommended Follow-Up: Strengthen internal controls over financial reporting and ensure clear communication and resource allocation to meet deadlines by January 2025.

Finding Text

Finding SA 2023-002 Reporting: Late Submission of Single Audit Reporting Package Criteria Per 2 CFR §200.508(a) and §200.512(a) of the Uniform Guidance, entities that expend $750,000 or more in federal awards in a fiscal year must arrange for an audit in accordance with 2 CFR 200.509 and submit the Single Audit reporting package to the Federal Audit Clearinghouse (FAC) no later than nine months after the end of the fiscal year or 30 days after the receipt of the audit report, whichever is earlier. Timely submission is critical to ensure compliance with federal requirements and continued eligibility for federal funding. Condition The Organization did not submit the Single Audit reporting packages for the 2022 and 2023 audits within the required reporting timeline. Cause/Effect The late submission was due to delays in the Organization’s financial closing process. This non-compliance with the Uniform Guidance may result in the imposition of penalties and/or unnecessary costs. Questioned Costs None Recommendation We recommend that the Organization strengthen its internal controls over its financial accounting and reporting process to ensure consistent compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions: The Organization’s Accounting Department, under the direction of the Chief Executive Officer, Connie Franks will ensure that there’s proactive communication, dedicated resource allocation, and regular status checks on the deadline. He should ensure everyone involved understands the deadlines and responsibilities to avoid any delays. Completion of the referenced corrective action will be implemented by January 2025.

Corrective Action Plan

The Organization’s Accounting Department, under the direction of the Chief Executive Officer, Connie Franks, will ensure that there’s proactive communication, dedicated resource allocation, and regular status checks on the deadline. He should ensure everyone involved understands the deadlines and responsibilities to avoid any delays. Completion of the referenced corrective action will be implemented by January 2025.

Categories

Allowable Costs / Cost Principles Eligibility Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 522194 2023-001
    Material Weakness
  • 522195 2023-001
    Material Weakness
  • 522196 2023-001
    Material Weakness
  • 522197 2023-001
    Material Weakness
  • 1098635 2023-002
    -
  • 1098636 2023-001
    Material Weakness
  • 1098637 2023-001
    Material Weakness
  • 1098638 2023-001
    Material Weakness
  • 1098639 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.676 Unaccompanied Children Program $6.66M
93.558 Temporary Assistance for Needy Families $71,185
93.658 Foster Care Title IV-E $57,902