Finding 613122 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-08-21
Audit: 34983
Organization: Esperanza United (MN)
Auditor: Mahoney

AI Summary

  • Core Issue: The Organization failed to submit the Single Audit Reporting Package by the nine-month deadline due to late audit fieldwork and communication breakdowns.
  • Impacted Requirements: Noncompliance with 2 CFR section 200.512(a) affects the Organization's eligibility for low-risk auditee status in the following year.
  • Recommended Follow-Up: Update policies for timely submissions and enhance communication with auditors to prevent future delays; expect a repeat finding for 2022 but improvements are planned for 2023.

Finding Text

2022-001 Filing of Single Audit Report Material Weakness & Noncompliance Federal Program ? All programs Criteria - Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the audit period. Condition ? The Organization did not submit the Single Audit Reporting Package for the year ended June 30, 2021, within nine months after the end of the audit period (March 31, 2022). Cause ? Audit fieldwork for the year began late which caused scheduling conflicts for the auditor during their peak months of operations, which delayed the audit further. In addition, there was a break-down of communication between the auditor and the Organization which caused further delays. These delays all together cause the audit and data collection form to not be completed by the nine-month due date. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Organization not qualifying for low-risk auditee status for the subsequent year?s Single Audit. Recommendation ? We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Management?s Response and Corrective Action ? The Organization transitioned to a contract accountant in June 2022 and continues to work with the contract financial team who plans to have the books closed in a timely manner going forward. The Organization is also actively working with their auditing firm to improve communication during the audit so a future breakdown in communication does not occur. This transition and this new plan were not implemented until after the end of fiscal year 2022, so a repeat finding is expected for the 2022 audit, but the issue will be mitigated for the 2023 audit. Responsible party for corrective action ? Patti Tototzintle, President and CEO Repeat finding ? No

Categories

Material Weakness Reporting

Other Findings in this Audit

  • 36677 2022-001
    Material Weakness
  • 36678 2022-001
    Material Weakness
  • 36679 2022-001
    Material Weakness
  • 36680 2022-001
    Material Weakness
  • 36681 2022-001
    Material Weakness
  • 36682 2022-001
    Material Weakness
  • 613119 2022-001
    Material Weakness
  • 613120 2022-001
    Material Weakness
  • 613121 2022-001
    Material Weakness
  • 613123 2022-001
    Material Weakness
  • 613124 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.592 Family Violence Prevention and Services/discretionary $1.01M
16.526 Ovw Technical Assistance Initiative $636,293
16.575 Crime Victim Assistance $275,021
16.888 Consolidated and Technical Assistance Grant Program to Address Children and Youth Experiencing Domestic and Sexual Violence and Engage Men and Boys As Allies $113,632
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $54,858
97.024 Emergency Food and Shelter National Board Program $1,750