SPECTRUM CHILD AND FAMILY SERVICES

Agency: U.S. Department of Treasury. Federal program and award numbers: 21.019, Coronavirus Relief Fund. Criteria: The Organization should have internal controls in place to prepare an accurate Schedule of Expenditures of Federal Awards (SEFA) in compliance with the appropriate standards which includes submission of the single audit the sooner of nine months after year end or within 30 days of issuance of the financial statement audit. Statement of condition: The Organization's internal controls failed to timely conclude on the required grants to be included on the final SEFA and tested under Uniform Guidance. Also, the Organization's single audit was not completed and submitted the sooner of nine months after year-end or within one month of issuance of the financial statement audit. Questioned costs: The amount of questioned costs could not be determined. Context: Testing under the Uniform Guidance was not identified timely. Effect: The Organization was not in compliance with the reporting requirements of the contract. This resulted in the SEFA being materially misstated and the Organization's single audit not completed and submitted the sooner of nine months after year-end or within 30 days of issuance of the financial statement audit. Cause: The submission of the single audit was delayed due to several factors, including determination if funds required testing under Uniform Guidance, first-year single audit readiness and preparation and gathering appropriate audit evidence to complete the audit in a timely manner. Recommendation: We recommend management track all grant funding along with the reporting requirements and related due dates for each contract to ensure prompt submission of reports. Management's Response: Management agrees with the recommendation. Management will implement a more timely review of contracts and preparation of the SEFA to ensure accuracy of the programs reported. This will also ensure all deadlines are met.