Finding Text
Item FA 2024-001 (2022-001) Material Weakness - Controls over Sub-Recipients: Statement of Condition: The Organization is new to Single Audit requirements. They did not realize when giving funds to sub-recipients, the Organization is required to monitor the funding is being used for its intended purpose. Some sub-recipients received payments in advance and there was no follow-up reporting on how the funding was spent. The Organization is also required to submit reports to the National Board on a timely basis. The final report was due to the National Board on February 28, 2025 and has not been submitted yet. Criteria - The Emergency Food and Shelter National Board Program Funding and Appliance Guidance on page 8 explains the Fiscal Agent/Fiscal Conduit - Supplemental Funding procedures required by the EFSP. Sound accounting practices demand proper controls of the funds released to sub-recipients. Questioned Costs - Unknown. Cause - The Organization is new to receiving large amount of federal funding and did not understand the federal and single audit requirements. Effect - The Organization cannot be totally sure that the funding was used for its intended purpose. Recommendation - We recommend the Organization continue its efforts to put in place follow-up procedures to ensure that proper monitoring of sub-recipients takes place and reporting procedures are in place for timely reporting. Response - Our Organization has developed a Monitoring Policy to have better oversight of our sub-recipients. The Chief Executive Officer will implement by June 30, 2025.