Finding 571490 (2024-011)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-07-16

AI Summary

  • Core Issue: The data collection form was not submitted by the December 31, 2024 deadline, risking a high-risk designation from granting agencies.
  • Impacted Requirements: Delays in the audit process due to complex accounting led to non-compliance with CFR 200.512, which mandates timely submission of the audit report.
  • Recommended Follow-up: The Board and management should simplify accounting processes for net assets and investments to ensure timely audits and compliance.

Finding Text

Condition: The data collection form was not available for submission by December 31, 2024, which was nine months after the Organization’s year-end. Effect: Untimely filing of the data collection form could cause granting agencies to consider the Organization high-risk. Cause: Audit was not completed in time due to delays in reconciliation by management of certain account discrepancies in net assets and beneficial interests, in turn caused by overly complex accounting for the aforementioned balances. Criteria: Per CFR 200.512 related to report submission of the data collection form, "The audit must be completed and submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit period." Recommendation: It is recommended that the Board of Directors and Management streamline processes related to accounting for net assets, investments, and beneficial interests, as well as work to simplify the accounting records to enable more clear and accurate presentation of these balances. Response: The Board and management will consult with the auditors to identify best practices to be performed to enhance the quality of the accounting processes. Note: This is a repeat finding.

Corrective Action Plan

Recommendation: It is recommended that the Board of Directors and management streamline processes related to accounting for net assets, investments, and beneficial interests, as well as work to simplify the accounting records to enable more clear accurate presentation of these balances. Corrective Action The Board and management will consult with the auditors to identify Planned: best practices to be performed to enhance the quality of the accounting processes. Anticipated The corrective action plan will be implemented by July 2025 and will Implementation have continued oversight by management and the Board of Directors. Date:

Categories

Reporting

Other Findings in this Audit

  • 1147932 2024-011
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.658 Foster Care Title IV-E $841,376
93.667 Social Services Block Grant $113,864
93.603 Adoption and Legal Guardianship Incentive Payments Program $95,933
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $81,000
93.556 Marylee Allen Promoting Safe and Stable Families Program $37,800