Finding 571645 (2023-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-07-18
Audit: 362587
Organization: Southern California Crossroads (CA)
Auditor: Guzmangray

AI Summary

  • Core Issue: The Organization did not submit its Single Audit report on time, violating Uniform Guidance requirements.
  • Impacted Requirements: Failure to submit within nine months of year-end can lead to being labeled "high risk" and incurring additional audit costs.
  • Recommended Follow-Up: Implement new policies to ensure timely audits, starting the process by July or August to align with funding partners' fiscal calendars.

Finding Text

Condition: Single Audit Report should have been submitted the earlier of 30 days after receipt of the auditor’s report or 9 months after the end of the Organization’s year end. Criteria: Uniform Guidance requires organizations that expend $750,000 and greater of federal funds to conduct a Single Audit and submit the data collection form to the Federal Audit Clearinghouse no later than nine months after year end. Cause: The Organization expended federal funds over $750,000 requiring a Single Audit to be performed. Because of the misunderstanding in the filing requirement and due to shortage of staff, the Organization failed to meet the Uniform Guidance requirement of submitting the Single Audit report nine months after year end. Effect: The Organization's Single Audit report was not submitted timely resulting in noncompliance with requirements under the Uniform Guidance (2 CFR Part 200). Furthermore, missing the deadline can lead to an organization being considered "high risk" in the following year and subject to additional testing, potentially incurring extra audit expenses. Recommendation: The Organization should implement policies and procedures that would guide personnel to prepare timely for the Single Audit, conduct the audit earlier in the year, and submit the report no later than nine months after year end. Views of Responsible Officials and Planned Corrective Actions: Given that the Organization’s accounting team is relatively small, consisting of only three staff members, the Organization has determined that initiating the audit in July-no later than August- will be the most feasible approach moving forward. This timing aligns with the fiscal year calendars of the majority of their funding partners, which will provide the Organization with an extended period to dedicate their full attention to the audit process as the new fiscal year begins. Name of Contact Person Responsible for Corrective Plan: Denise Villamil, Executive Director Anticipated Completion Date: June 30, 2025

Corrective Action Plan

Condition: Single Audit Report should have been submitted the earlier of 30 days after receipt of the auditor’s report or 9 months after the end of the Organization’s year end. Criteria: Uniform Guidance requires organizations that expend $750,000 and greater of federal funds to conduct a Single Audit and submit the data collection form to the Federal Audit Clearinghouse no later than nine months after year end. Cause: The Organization expended federal funds over $750,000 requiring a Single Audit to be performed. Because of the misunderstanding in the filing requirement and due to shortage of staff, the Organization failed to meet the Uniform Guidance requirement of submitting the Single Audit report nine months after year end. Effect: The Organization's Single Audit report was not submitted timely resulting in noncompliance with requirements under the Uniform Guidance (2 CFR Part 200). Furthermore, missing the deadline can lead to an organization being considered "high risk" in the following year and subject to additional testing, potentially incurring extra audit expenses. Recommendation: The Organization should implement policies and procedures that would guide personnel to prepare timely for the Single Audit, conduct the audit earlier in the year, and submit the report no later than nine months after year end. Views of Responsible Officials and Planned Corrective Actions: Given that the Organization’s accounting team is relatively small, consisting of only three staff members, the Organization has determined that initiating the audit in July-no later than August- will be the most feasible approach moving forward. This timing aligns with the fiscal year calendars of the majority of their funding partners, which will provide the Organization with an extended period to dedicate their full attention to the audit process as the new fiscal year begins. Name of Contact Person Responsible for Corrective Plan: Denise Villamil, Executive Director Anticipated Completion Date: June 30, 2025

Categories

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Other Findings in this Audit

  • 1148087 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $900,996
59.008 Disaster Assistance Loans $0