Finding 576515 (2022-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-10-11
Audit: 76
Organization: Chuan Teng (CA)

AI Summary

  • Core Issue: Baker Places, Inc. failed to submit the required audit package and data collection form on time, resulting in noncompliance with federal reporting requirements.
  • Impacted Requirements: The submission deadline was not met as outlined in 2 CFR 200.512, which mandates timely reporting to the Federal Audit Clearinghouse.
  • Recommended Follow-Up: Implement internal controls and designate a knowledgeable individual to oversee compliance and ensure timely submissions, while maintaining evidence of all reports.

Finding Text

2022-002 - Reporting (Material Weakness) Federal program information: Federal agency: U.S. Department of Human Health and Services Pass-through agency:: PRC Title: Housing Opportunities for Persons with AIDS ALN number: 14.241 Criteria: The OMB Uniform Guidance and contract with federal funding agency require that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements as follows: Section 2 CFR 200.512 of the Uniform Guidance states: 1. 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. Data Collection. The FAC is the repository of record for Subpart F-Audit Requirements of this Part reporting packages and the data collection form. All federal agencies, pass-through entities and others interested in a reporting package and data collection form must obtain it by accessing the FAC. Condition: The audit package and data collection form were not submitted to the Federal Audit Clearinghouse for the reporting year ended June 30, 2022, within 9 months after the audit period. Effect: Baker Places, Inc.n is deficient in its submission of the required audit reporting package and data collection form. As such, Baker Places, Inc. is noncompliant with the reporting requirements. Questioned Costs: None. Cause: Baker Places, Inc. does not have internal control procedures to ensure timely submission of a financial reports. Repeat finding: Yes Recommendation: We recommended that Baker Places, Inc. implement policies, procedures and controls to ensure compliance with the reporting requirements. Baker Places, Inc. should designate an individual that has thorough knowledge of both the program and the compliance requirements to monitor, review and approve all required reports including knowledge of reporting deadlines and ensure timely submission of all required reports to the funding agency. Evidence of submission should also be maintained as part of program documentation.

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 73 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.241 Housing Opportunities for Persons with Aids $1.20M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $460,847
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $384,108