Finding 59140 (2022-004)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2023-04-20

AI Summary

  • Core Issue: The organization missed the deadline for submitting the 2021 Single Audit reporting package and data collection form to the Federal Audit Clearinghouse.
  • Impacted Requirements: Compliance with 2 CFR section 200.512 of the Uniform Guidance, which mandates timely submission of audit reports.
  • Recommended Follow-Up: Aim to finalize year-end reconciliations within 3-4 months to ensure timely completion of future audits and submissions.

Finding Text

Finding 2022-004: Financial Reporting Timeliness (Uniform Guidance Compliance) Criteria In accordance with 2 CFR section 200.512 of the Uniform Guidance, the audit must be completed and the data collection form and reporting package must be submitted to the Federal Audit Clearinghouse 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. Condition The 2021 Single Audit reporting package and data collection form have not been submitted to the Federal Audit Clearinghouse by the deadline of March 31, 2023. Cause This is the first year the Organization has been subject to the Uniform Guidance reporting requirements. Effect The filing of the Single Audit Reporting package and data collection form is past the due date. Recommendation We recommend the Organization strive to close the year with properly prepared reconciliations within 3 - 4 months after year-end in order to complete the annual financial audit timely. Views of Responsible Officials The Organization agrees with the auditor's findings. We will coordinate in advance of the audit to make sure we have had our processes reviewed and confirmed to be in compliance with the Uniform Guidance, as well as, have ledgers, bank reconciliations, invoices and receipts properly organized. We will engage the auditor early as well to make sure we are on a path to submit documentation to the Federal Audit Clearinghouse before March 31, 2024.

Corrective Action Plan

Finding 2022-004: Financial Reporting Timelines (Uniform Guidance Compliance) The Accounting Officer will coordinate in advance of the audit to make sure we have had our processes reviewed and confirmed to be in compliance with the Uniform Guidance Compliance, as well as, have ledgers, bank reconciliations, invoices and receipt properly organized. We will engage the Auditor early as well to make sure we are on a path to submit documentation to the Federal Audit Clearing House before March 31, 2023. To address these findings and ensure compliance with Title 2 requirements, Habitat for Humanity Yuba/Sutter will implement the following corrective action plan: 1. Operationalize the Grants Management Standards ? Habitat for Humanity Yuba/Sutter will conduct a comprehensive review of its current grants management policies and procedures to identify any gaps or deficiencies in compliance with Title 2 requirements. ? The organization will update its grants management policies and procedures to align with Title 2 regulations, including documentation requirements, financial management, reporting, and record keeping. ? Habitat for Humanity Yuba/Sutter will provide training and resources to its staff involved in grants management to ensure they are knowledgeable about the updated policies and procedures. ? The organization will establish a system for ongoing monitoring and internal audits to ensure compliance with grants management standards, and make necessary adjustments as needed. 2. Establish a Robust Marketplace of Modern Solutions ? Habitat for Humanity Yuba/Sutter will conduct a thorough review of its current marketplace of solutions, including vendors, software, and technologies used in its operations. ? The organization will identify opportunities to modernize its systems and processes to enhance efficiency, streamline operations, and ensure compliance with Title 2 requirements. ? Habitat for Humanity Yuba/Sutter will develop a plan to implement modern solutions, including budgeting, procurement, and implementation timelines. ? The organization will establish a process for ongoing evaluation and monitoring of the effectiveness of the modern solutions implemented, and make necessary adjustments as needed. 3. Manage Risk ? Habitat for Humanity Yuba/Sutter will conduct a comprehensive risk assessment to identify potential risks associated with grants management and compliance with Title 2 requirements. ? The organization will develop and implement risk mitigation strategies, including internal controls, monitoring mechanisms, and contingency plans. ? Habitat for Humanity Yuba/Sutter will establish a system for ongoing risk management, including regular risk assessments and reviews, and updates to risk mitigation strategies as needed. ? The organization will ensure that all staff involved in grants management are aware of the risk mitigation strategies and trained on how to implement them effectively. 4. Achieve Program Goals and Objectives ? Habitat for Humanity Yuba/Sutter will review and align its program goals and objectives with the requirements of Title 2. ? The organization will develop a comprehensive plan to ensure that its programs are designed, implemented, and evaluated in accordance with Title 2 guidelines, including outcome measurement, data collection, and reporting. ? Habitat for Humanity Yuba/Sutter will establish regular monitoring and reporting mechanisms to track progress towards program goals and ensure compliance with Title 2 requirements. ? The organization will provide training and resources to its staff involved in program management to ensure they are knowledgeable about the updated program goals and objectives and the requirements of Title 2.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $580,313
14.231 Emergency Solutions Grant Program $48,725
93.569 Community Services Block Grant $46,786
14.218 Community Development Block Grants/entitlement Grants $30,000
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $6,960