Finding 527000 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-03-14

AI Summary

  • Core Issue: The United Way of Youngstown and Mahoning Valley missed deadlines for filing the required reporting package due to delays in accounting processes.
  • Impacted Requirements: The organization failed to comply with Part 200 requirements for timely submission of the audit reporting package, which is crucial for entities with over $750,000 in federal awards.
  • Recommended Follow-Up: Management should establish formal monthly accounting procedures and controls to ensure timely financial reporting and compliance with federal award requirements.

Finding Text

FEDERAL AWARDS - The United Way of Youngstown and Mahoning Valley is responsible for the timely filing of the reporting package required under Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards which must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Statement of Criteria: An entity that exceeds $750,000 or more in federal awards expenditures during the fiscal year is required to obtain a Single Audit and file the reporting package with the Federal Audit Clearinghouse (FAC) by a specified due date. Statement of Cause: Due to personnel turnover in the Organization's accounting area during the year, account reconciliations and posting of activity was not performed in a timely manner which caused delays in obtaining the necessary information for performance of the audit. Statement of Effect: As a result of above, the audit was unable to be completed in a timely manner in order to meet the FAC filing deadlines. Recommendation: Management should formalize monthly accounting and closing procedures to ensure timely financial reporting. They should also formalize a system of procedures and controls to ensure the Organization is meeting all applicable reporting requirements as they relate to federal awards. Planned Corrective Action: See Corrective Action Plan on page 30 and 31.

Corrective Action Plan

Management is writing to outline a corrective action plan regarding the late filing of the Schedule of Expenditures of Federal Awards (SEFA). This plan aims to address the issues that led to the delay and to implement measures to prevent future occurences. 1. Identification of Issues: Review the circumstances that contributed to the late filing, including any staffing shortages, miscommunication, or unforseen challenges. 2 Immediate Actions Taken: Complete the SEFA and submit it to the appropriate federal agency. 3. Preventative Measures: Establish a timeline for the preparation and submission of the SEFA, including key milestones and deadlines. Assign specific responsibilities to team members to ensure accountability in the preparation process. Implement a checklist to verify that all necessary documentation and approvals are obtained in a timely manner. 4. Monitoring and Review: Schedule regular check-ins to monitor progress on the SEFA preparation and address any issues promptly. Conduct a review after the next filing period to assess the effectiveness of the corrective actions and make adjustments as necessary.

Categories

Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 1103442 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $940,812
84.287 Twenty-First Century Community Learning Centers $668,673
21.027 Coronavirus State and Local Fiscal Recovery Funds $124,571
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $54,000