Finding 570984 (2024-001)

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Requirement
L
Questioned Costs
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Year
2024
Accepted
2025-07-10
Audit: 361911
Organization: Favor, Inc. (CT)

AI Summary

  • Core Issue: The federal single audit report was submitted late, missing the March 31, 2025 deadline.
  • Impacted Requirements: Management must ensure timely submission of audit reports for expenditures over $750,000.
  • Recommended Follow-Up: Start the audit process earlier to prevent future delays.

Finding Text

Finding No. 2024-001: Reporting Requirements Criteria : Management is responsible for submitting a federal single audit report by March 31, 2025, for each year where the expenditures exceed $750,000. Condition: For the year ended June 30, 2024, the federal single audit report was not issued until after the deadline of March 31, 2025.Questioned Costs: None noted. Cause: Due to turnover at the organization, as well as the hiring of a new bookkeeper and audit firm, the audit timeline was extended. Effect: The federal single audit was filed after the deadline. Context: The audit work extended beyond the federal single audit deadline du3 to delays in starting the audit work because of turnover and prior year audit delays. Repeat Finding: No Recommendation: We recommend that FAVOR, Inc. begin the audit earlier in order to avoid this issue going forward. Views of Responsible Officials: Management concurs with the finding and notes that the Organization has hired the appropriate staff and service organizations to complete the audit in a timely manner.

Corrective Action Plan

Close the future accounting records in a timly fashion and submit federal single audit on time.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.958 Block Grants for Community Mental Health Services $719,450
93.556 Marylee Allen Promoting Safe and Stable Families Program $50,000
93.669 Child Abuse and Neglect State Grants $31,304