Finding 616049 (2022-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-26
Audit: 37105
Organization: Friendly House, Inc. (AZ)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization failed to provide proper documentation for two out of three performance reports, despite internal reviews being conducted.
  • Impacted Requirements: Timely submission and accurate reporting of performance data as mandated by the U.S. Department of Health and Human Services.
  • Recommended Follow-up: Management should enhance internal controls and record-keeping processes to prevent future reporting errors.

Finding Text

2022-002 Reporting Noncompliance Reporting Significant Deficiency in Internal Control over Compliance U.S. Department of Health and Human Services Passed-through the Arizona Department of Economic Security Refugee and Entrant Assistance State Administered Federal Financial Assistance Listing/CFDA #93.566; ADES18-191650; October 1, 2020 to September 30, 2021 and October 1, 2021 to September 30, 2022 Criteria: The Organization is required to submit performance reports for each trimester. Reports should be submitted timely in accordance with established requirements and should be reviewed by a supervisory individual prior to submission to ensure accuracy. Condition: Eide Bailly LLP (EB) noted the following internal control issues. ? Although the reports were reviewed in accordance with the internal controls, two out of three reports tested lacked the required documentation to support the reports Cause: Based on discussions with personnel, the errors in reports are due to administrative errors. Effect: Inaccurate information may be provided to the funder regarding performance of the Organization. Questioned Costs: None reported. Context/Sampling: All three of the reports submitted during the year were selected for testing. Repeat Finding from Prior Year: Yes, 2021-002. Recommendation: We recommend the Organization?s management routinely review and consider modifications that would strengthen the internal controls surrounding the reporting process, record-keeping, and the management thereof. Views of Responsible Officials: Management agrees with the finding.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 39607 2022-002
    Significant Deficiency Repeat
  • 39608 2022-003
    Material Weakness Repeat
  • 616050 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $727,404
93.566 Refugee and Entrant Assistance_state Administered Programs $391,870
84.044 Trio_talent Search $294,593
10.559 Summer Food Service Program for Children $235,088
16.575 Crime Victim Assistance $225,954
93.235 Affordable Care Act (aca) Abstinence Education Program $155,033
84.010 Title I Grants to Local Educational Agencies $154,151
17.270 Reintegration of Ex-Offenders $117,182
84.287 Twenty-First Century Community Learning Centers $105,016
10.553 School Breakfast Program $102,670
14.870 Resident Opportunity and Supportive Services - Service Coordinators $71,560
10.569 Emergency Food Assistance Program (food Commodities) $27,567
10.555 National School Lunch Program $26,600
84.424 Student Support and Academic Enrichment Program $19,645
84.002 Adult Education - Basic Grants to States $18,735
84.367 Improving Teacher Quality State Grants $18,509
84.027 Special Education_grants to States $15,262
84.365 English Language Acquisition State Grants $10,731
84.173 Special Education_preschool Grants $1,138