Finding 578996 (2022-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-11-28
Audit: 4353
Organization: Arc Community Services, INC (WI)
Auditor: Wegner CPAS LLP

AI Summary

  • Core Issue: ARC failed to submit the audit within the required nine-month timeframe due to lapses in routines and management changes.
  • Impacted Requirements: The reporting requirement under Uniform Guidance was not met, which could affect compliance with federal regulations.
  • Recommended Follow-Up: Management should continue improving staffing and resources to ensure timely audits, as recent enhancements to the accounting team are promising.

Finding Text

Assistance Listing Number(s): 93.959 Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number(s): 93.788 Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants Name of Federal Agency: Department of Health and Human Services Criteria or Specific Requirement: Audits under Uniform Guidance are required to be submitted in the Federal Audit Clearinghouse within nine months of the fiscal year end. Condition and Context: ARC could not support the planning, performance and completion of the audit before 9-month period had passed. Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area. Effect or Potential Effect: The reporting requirement of Uniform Guidance is not met. Repeat Finding: No Recommendation: We recommend management continue to make the improvements in staffing and resources to ensure timely financial statement close and audit support. While staffing during the year under audit was not sufficient, it has been addressed and improved subsequent to the report date. Views of Responsible Officials: In 2023, ARC has made significant enhancements to its accounting team in both experience and depth of knowledge and has implemented processes and procedures to support planning, performing and completing the audit on time.

Categories

Reporting

Other Findings in this Audit

  • 2550 2022-002
    Significant Deficiency Repeat
  • 2551 2022-002
    Significant Deficiency Repeat
  • 2552 2022-003
    Significant Deficiency Repeat
  • 2553 2022-003
    Significant Deficiency Repeat
  • 2554 2022-004
    Significant Deficiency
  • 2555 2022-004
    Significant Deficiency
  • 2556 2022-005
    Significant Deficiency
  • 2557 2022-005
    Significant Deficiency
  • 578992 2022-002
    Significant Deficiency Repeat
  • 578993 2022-002
    Significant Deficiency Repeat
  • 578994 2022-003
    Significant Deficiency Repeat
  • 578995 2022-003
    Significant Deficiency Repeat
  • 578997 2022-004
    Significant Deficiency
  • 578998 2022-005
    Significant Deficiency
  • 578999 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $720,458
16.320 Services for Trafficking Victims $502,680
16.575 Crime Victim Assistance $438,693
93.788 Opioid Str $283,925
93.136 Injury Prevention and Control Research and State and Community Based Programs $52,059