Finding 571299 (2023-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2025-07-15

Audit: 362236

Organization: Friends of the Mission (CA)

Auditor: Propp Christensen Caniglia LLP

AI Summary

Core Issue: The financial audit for 2022 was submitted late, exceeding the nine-month deadline.
Impacted Requirements: This finding violates the reporting requirements set by Uniform Guidance 2 CFR 200.512(a).
Recommended Follow-Up: Implement new policies to ensure timely submission of financial audits to the Federal Audit Clearinghouse.

Finding Text

Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name of auditee: Friends of the Mission Finding: 2023-002 Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: January 1, 2023 through December 31, 2023 CAP prepared by: Scott Thurmond, Executive Director Telephone: (916) 416-0901 Comments: Management agrees with the finding. Actions: Management will ensure that audited financial statements are submitted to the Federal Audit Clearinghouse within the required time frame.

Other Findings in this Audit

571300 2023-002

Significant Deficiency
571301 2023-002

Significant Deficiency
571302 2023-002

Significant Deficiency
571303 2023-002

Significant Deficiency
571304 2023-003

Significant Deficiency
1147741 2023-002

Significant Deficiency
1147742 2023-002

Significant Deficiency
1147743 2023-002

Significant Deficiency
1147744 2023-002

Significant Deficiency
1147745 2023-002

Significant Deficiency
1147746 2023-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
21.027	Coronavirus State and Local Fiscal Recovery Funds	$1.56M
14.218	Community Development Block Grants/entitlement Grants	$309,809