Assemblies of God Family Services AgencyNon-Profit

Condition: The data collection form was not available for submission by December 31, 2024, which was nine months after the Organization’s year-end. Effect: Untimely filing of the data collection form could cause granting agencies to consider the Organization high-risk. Cause: Audit was not completed in time due to delays in reconciliation by management of certain account discrepancies in net assets and beneficial interests, in turn caused by overly complex accounting for the aforementioned balances. Criteria: Per CFR 200.512 related to report submission of the data collection form, "The audit must be completed and submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit period." Recommendation: It is recommended that the Board of Directors and Management streamline processes related to accounting for net assets, investments, and beneficial interests, as well as work to simplify the accounting records to enable more clear and accurate presentation of these balances. Response: The Board and management will consult with the auditors to identify best practices to be performed to enhance the quality of the accounting processes. Note: This is a repeat finding.

2023-001 - Data collection form not filed by deadline (non-compliance - other) Condition: The data collection form was not available for submission by December 31, 2023, which was nine month's after the Organizatin's year end. Criteria: Per CFR 200.512 related to report submission of the data collection form, "The audit must be completed and submitted within the earlier of 30 calendar days after receipt of the auditors report, or nine months after the end of the audit period." Cause: Audit was not completed in time due to staffing changes both with auditor and delayed sigle audit testing. Effect: Untimely filing of the data collection form could cause granting agencies to consider the Organization high-risk. Questioned Costs: None. Recommendation: We recommend remaining diligent in reporting timelines. Management Response: The initial audit engagement letter was signed by COMPACT June 8, 2023. COMPACT staff was efficient in returning all requested documents to the auditors in a timely fashion. Starting in October of 2023, COMPACT staff reached out many times in order to determine a projected completion date from the audit firm with the projected date being delayed time and time again. COMPACT does not accept responsibility for any late submissions as even with consistent and persistent follow through auditors refused to work in a timely manner.

2022-001, Accounts receivable not being properly tracked. Condition: Accounts receivable were not being properly tracked and recorded. Criteria: Per the Uniform Guidance, a significant deficiency exists when there is a failure to reconcile accounts receivable in a timely or accurate manner. Cause: Former finance manager had multiple events in her personal life that were preventing her from focusing on her job and was unable to properly track receivables. Effect: Material misstatement in revenues and receivables that had to be written off due to lack of documentation. Recommendation: We recommend a system of internal controls be developed and put in place to ensure adequate tracking of receivables. Management response: This has been done as of the date of the audit. Former finance manager was replaced and a new accounts receivable tracking system was put into place.