Finding Text
2022-006 – LATE DATA COLLECTION FORM
Type of Finding: (F) –Instance of Non-Compliance Related to Federal Awards
Funding Agency: All (see Schedule of Expenditures of Federal Awards)
Title: All (see Schedule of Expenditures of Federal Awards)
AL #: All (see Schedule of Expenditures of Federal Awards)
Award #: All (see Schedule of Expenditures of Federal Awards)
Award Period: All (see Schedule of Expenditures of Federal Awards)
Questioned Costs: None
Statement of Condition
Heading Home submitted the data collection form after the required due date.
Context
Heading Home was required to submit their data collection form for the year ended June 30, 2022, by March 31, 2023.
Criteria
The audit shall be completed, and the data collection form and reporting package shall be electronically transmitted within the earlier period of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)).
Cause
Heading Home did not submit the June 30, 2022, data collection form and reporting package by the due date due to significant program expansion and the backlog created for the administrative team. This also caused a delay in preparing and completing the fiscal year 2022 audit.
Effect
Heading Home is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding.
Recommendation
Heading Home should implement procedures and controls to ensure that all future audit reports and data collection forms are completed in a timely manner.
View of Responsible Official and Corrective Action Plan
Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles.
Heading Home’s accounting team is in the process of preparing for the 2023 audit and anticipates the audit to be completed by June 30, 2024. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2024 and all future audits will be submitted on or before the March 31st due date.
Management anticipates the above corrective action plan to be fully implemented by June 30, 2024. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountants team lead.