SERV ACHIEVEMENT CENTERS, INC.Non-Profit

Finding 2021-002 - Program: All federal programs. - Criteria or specific requirement: Management is responsible for the timely filing of the data collection form with the federal audit clearinghouse. - Condition: The Organization did not have a fully reconciled final trial balance supported by reconciled schedules until April 2023, which caused significant delays in the audit process. This, in turn, led to the untimely filing of the data collection form. - Effect: Noncompliance with single audit standards. - Cause: There was significant turnover in the accounting department throughout the calendar year and subsequent to year end, including change in the Chief Financial Officer and Controller positions. - Recommendation: We recommend that management of the Organization closely follow a monthly reporting checklist which lists all reports due and reconciliations required in support thereof. The checklist would outline the reporting frequency, the staff member responsible, and the supervisor assigned to review and take ultimate responsibility. Further, we recommend a process be put into place where all outstanding receivables are reviewed and written off on a more frequent basis. - Views of responsible officials and planned corrective actions: Management is in agreement with the finding. See Corrective Action Plan.

Program: State of New Jersey, Department of Children and Families, Division of Children?s System of Care, Treatment Homes, CFDA No. 93.778 ? Criteria or specific requirement: The DCF program requires that the Organization submit Program Staffing Summary Reports annually by the 10th day following the month succeeding each contract year. ? Condition: The Organization did not submit the Program Staffing Summary Reports timely during the calendar year. ? Effect: The Organization was not in compliance with the DCF program?s annual reporting requirements. ? Cause: There were delays due to the COVID-19 pandemic and state employees working remotely. There was no request made during the year, causing the annual reports to not be submitted. ? Recommendation: We recommend all required reporting be submitted to DCF to remain in compliance with program requirements. ? Views of responsible officials and planned corrective actions: Management is in agreement with the finding. See Corrective Action Plan.

Program: All federal programs ? Criteria or specific requirement: The Organization is required to submit the audit to the federal audit clearinghouse by the due date. ? Condition: The Organization did not file the audit with the federal audit clearinghouse by the due date. ? Effect: The books and records were not finalized timely, leading to a protracted audit, delaying the submission to the federal audit clearinghouse. ? Cause: There was significant turnover in the accounting department throughout the calendar year, including turnover in the Chief Financial Officer and Controller positions. There have also been delays due to the current COVID-19 pandemic. ? Recommendation: We recommend the Organization submits the audit to the federal audit clearinghouse in a timely manner. ? Views of responsible officials and planned corrective actions: Management is in agreement with the finding. See Corrective Action Plan.