Finding 974151 (2023-002)

Finding 2023-002 – Significant Deficiency Federal Grantor: U.S. Department of Justice Passed-through: California Governor’s Office of Emergency Services Pass-through Grantor’s No.: Various Compliance Requirement: Reporting Condition: The Organization submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in May 2024, 2 months after it was due. Criteria: The Organization was required to submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than March 31, 2024, nine months after the fiscal year-end (2 Code of Federal Regulations §200.512). Effect: Federal awarding agencies may deny future federal awards or subject the Organization to additional cash monitoring requirements. This finding was not a result of internal control over individual federal programs and, accordingly, did not have a direct and material effect on the reporting requirements over the Organization’s major federal programs. Cause: The Organization failed to prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner due to turnover in personnel. Recommendation: The Organization needs to ensure that it can close its books and submit its audited financial statements and single audit to the federal audit clearinghouse no later than the statutory reporting deadline. Management’s Response: Management’s response to the finding is discussed in the attached Corrective Action Plan.