Finding 565024 (2023-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2025-06-16

Audit: 358917

Organization: Rising for Justice, Inc. (DC)

Auditor: Sb & Company LLC

AI Summary

Core Issue: The Organization did not complete its audit report and data collection form within the required nine-month timeframe.
Impacted Requirements: This is a violation of 2 CFR 200.512, which mandates timely submission of audit reports and related documentation.
Recommended Follow-Up: Establish clear policies and procedures for timely audits and provide training for staff managing Federal assistance programs.

Finding Text

Finding 2023-02 Federal Assistance Listing No. 21.027 Coronavirus State and Local Fiscal Recovery Significant Deficiency and Noncompliance Over Reporting Repeat Finding: No Condition: The Organization’s single audit report and the data collection form were not completed within nine months after the end of the audit period. Criteria: Per 2 CFR 200.512: Report Submission. (a) General. (1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. Cause: The Organization’s fiscal year 2023, financial statements and Single Audit was not completed within the nine months after the end of the audit period. The Organization did not have the policies and resources in place to complete a single audit in a timely manner. Effect: Failure to submit the reporting package and data collection form within the required timeframe results in non-compliance with the Uniform Guidance reporting requirements. Questioned Costs: None. Recommendation: We recommend that the Organization creates policies and procedures to ensure that audits are started and completed in a timely fashion so the reporting package submission to the Federal government can be made in accordance with Federal guidelines. We also recommend that individuals responsible for administering Federal assistance programs with the Organization receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the Corrective Action Plan.

Corrective Action Plan

Schedule of Corrective Action Plan For the Year Ended December 31, 2023 Finding 2023-02: Significant Deficiency and Noncompliance Over Reporting Responsible Official’s Response and Corrective Action Plan Rising for Justice (RFJ) concurs with the findings. RFJ acknowledges the importance of adhering to the Federal guidelines for the submission of the reporting package within the mandated nine-month period. This finding is a result of the carry-over of certain grant funds from FY 2023 to FY 2024, as well as a transition in the organization’s accounting team. To address this, RFJ will implement the following actions: 1.Policies and Procedures Development: RFJ will create and enforce comprehensive policies and procedures to ensure that audits are initiated and completed promptly. This will include detailed timelines and checkpoints to monitor progress throughout the audit process. In addition, RFJ will adhere to a year end closing process that reconciles all significant accounts. 2.Training for Grant Administration: RFJ will provide training for individuals responsible for administering grants within RFJ. This training will cover essential aspects of grant administration, ensuring that our team is well-equipped to manage these programs efficiently and in compliance with Federal requirements. Planned Implementation Date of Corrective Action Plan June 20, 2025 Person Responsible for Corrective Action Plan ___________________________________ Chijioke Akamigbo, Executive Director April 15, 2025

Other Findings in this Audit

565023 2023-001

Significant Deficiency Repeat
1141465 2023-001

Significant Deficiency Repeat
1141466 2023-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
21.027	Coronavirus State and Local Fiscal Recovery Funds	$1.22M