Finding 60471 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-25

AI Summary

  • Core Issue: Financial results were not ready on time, delaying the audit and SF-SAC submission.
  • Impacted Requirements: Timely filing of the SF-SAC is essential under Uniform Guidance; delays affect compliance.
  • Recommended Follow-Up: Develop and enforce procedures for timely financial reconciliation and track SF-SAC due dates to ensure compliance.

Finding Text

2022-002: Timely Financial Reporting and SF-SAC Submission Criteria ? Filing of the SF-SAC Submission timely represents a functioning financial system. Condition and Context ? Complete and accurate financial results were not available on a timely basis in order to begin the audit prior to the due date of the SF-SAC. Significant adjustments needed to be determined and posted before an accurate set of financial statements was available to complete the SF-SAC (see Finding 2022-001). Effect ? Complete and accurate financial results were not available on a timely basis in order to begin the audit prior to the due date of the SF-SAC. Recommendation ? Procedures need to be developed for the following: ? Management should implement procedures to complete and reconcile all financial information within a reasonable time period after year end. ? Management should implement a system to track the due date of the SF-SAC to ensure timely filing. Management Response Bridges to Housing Stability, Inc. has procedures to complete and reconcile all financial information within a 90-day period after year-end. Due to the Finance Manager making changes to the financial information contrary to these procedures, the information was not finalized in a timely manner. The procedures to complete and reconcile all financial information in a timely manner are being followed for FY23. This was the first year a federal audit and SF-SAC was required. If the organization meets the threshold in the future needed to file the SF-SAC, Bridges to Housing Stability?s management will ensure that all deadlines are followed and due dates are tracked. Program CFDA 21.023 Finding 2022-002 is also a finding for the major federal program as timely filing of the SF-FAC is a requirement under the Uniform Guidance.

Corrective Action Plan

Section B Financial Statement Findings (continued) Significant Deficiencies- 2022-002 Timely Financial Reporting and SF-SAC Submission Plan: Bridges has policies in place in the Finance Manual that state the year end books are to be closed no later than 90 days after the end of the fiscal year (June 30th). This policy was not followed by the Finance Manager in FY 2022. Goldin Group CPA Firm will ensure that this policy is followed for FY2023, and complete and accurate financial results are available in order to begin the audit with enough time for it to be complete prior to the due date of the SF-SAC Bridges will be diligent to track the due date of the SF-SAC to ensure timely filing going forward. Accountable Owner: Jennifer Broderick, Executive Director Target Completion Date: September 30, 2023 Action Start Date: March 1, 2023 Progress: Bridges replaced staff with more trained & skilled CPA firm in March 2023. Financial team is working to close the FY2023 by September 30, 2023. Bridges to Housing Stability will not be subject to a Single Audit for FY2023 and will not need to submit a reporting package to the Federal Audit Clearinghouse for the year. If Bridges to Housing Stability must report in future years, the deadline for filing the reporting package will be tracked and all materials completed and submitted before the deadline. Section C- Federal Award Findings and Questioned Costs Significant Deficiencies 2022-002: Timely Financial Reporting and SF-SAC Submission Program CFDA 21.023 Plan: Bridges has policies in place in the Finance Manual that state the year end books are to be closed no later than 90 days after the end of the fiscal year (June 30th). This policy was not followed by the Finance Manager in FY 2022. Goldin Group CPA Firm will ensure that this policy is followed for FY2023, and complete and accurate financial results are available in order to begin the audit with enough time for it to be complete prior to the due date of the SF-SAC The CFDA 21.023 was new to Bridges to Housing Stability, and there were issues with the reporting platform used by Bridges to Report rental Assistance to funder (Howard County DHCD). The technical issues were not solved until late in FY2023, causing delays in completion of the SEFA and filing of the SF-SAC. Bridges will be diligent to track the due date of the SF-SAC to ensure timely filing going forward. Accountable Owner: Jennifer Broderick, Executive Director Target Completion Date: September 30, 2023 Action Start Date: March 1, 2023 Progress: Bridges replaced staff with more trained & skilled CPA firm in March 2023. Financial team is working to close the FY2023 by September 30, 2023. Bridges to Housing Stability will not be subject to a Single Audit for FY2023 and will not need to submit a reporting package to the Federal Audit Clearinghouse for the year. If Bridges to Housing Stability must report in future years, the deadline for filing the reporting package will be tracked and all materials completed and submitted before the deadline.

Categories

Reporting

Other Findings in this Audit

  • 60470 2022-001
    Material Weakness
  • 60472 2022-001
    Material Weakness
  • 60473 2022-002
    Significant Deficiency
  • 636912 2022-001
    Material Weakness
  • 636913 2022-002
    Significant Deficiency
  • 636914 2022-001
    Material Weakness
  • 636915 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program (era) 2 $466,223
21.023 Emergency Rental Assistance Program $443,216
14.231 Homelessness Solutions Programs Esg-Cv 2 $251,505
14.218 Community Development Block Grants/entitlement Grants $87,967
14.231 Homelessness Solutions Program Grant $19,654