Finding 560439 (2023-002)

Finding No. 2023-002: Significant Deficiency: Criteria: KRM is required to file the Uniform Guidance audit with the Federal Audit Clearinghouse within nine months of year-end. Statement of Condition: The Uniform Guidance audit for September 30, 2022 was completed and accepted by the Federal Audit Clearinghouse on June 11, 2024, which is more than nine months after the year-end, which was a due date of June 30, 2023. Cause of Condition: KRM provides resettlement, support, educational and legal services to refugees admitted to the United States through the State Department’s refugee admissions program. During 2022 and 2023, KRM experienced a significant increase in the number of refugees being served. The amount of refugees receiving services from KRM more than doubled, consistent with the increase in refugees entering the United States. This had a significant impact on the amount of financial assistance being passed through to KRM and the amount of time and resources necessary to process the refugees. Effect of Condition: The effect is that the compliance requirement to file timely with the Federal Audit Clearinghouse was not met. Recommendation: KRM should have future audits completed timely and filed timely with the Federal Audit Clearinghouse. Identification of Repeat Finding: The finding is a repeat of the finding noted in the audit for September 30, 2022 as finding 2022-002. Views of Responsible Officials: Management understands and accepts the recommendation as outlined in the Corrective Action Plan.