EIN: 541563619
UEI: M9QHZXAZYNM1
Data as of August 24, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 4, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 4, 2026 (174 days ago).
What is a management decision? →The Organization was not properly including, excluding, and accounting for leases. Criteria: Internal controls over financial close process, should be in place and operating effectively to ensure that material misstatements are detected and corrected by management in a timely manner. Cause and Effect: Cause: Management did not properly design and implement controls over financial close, and the accounting for leases process. Effect: Leases commitments were not properly accounted for, excluded, and included in the Organizations books and records during the year. Recommendation: We recommend that management put controls in place to reconcile these accounts on a monthly or quarterly basis to ensure proper recognition of leases, financial team along with those who are familiar with the leases should work together to update the books and records accordingly. This process should documented and also be done at year end as well to make sure all leases and other financial close processes are done to ensure that the financials are free from material misstatements. Management Response: Lease contracts from 2024 and prior have been reviewed and recorded properly in accordance with ASC842. There were two new leases signed during 2024 that were related to future year commitments that were not sent to the accounting team; thus, they were not reflected on the Organization’s books and records at year end. Corrective Action Plan: Accounting staff will be trained to record monthly lease expenses according to their lease schedules and cash payments. These accounts will be reviewed quarterly, including year end and signed off by a qualified accountant. Management will create a tracking sheet to monitor the renewal, termination, expiration dates, and review of their schedules. It will be reviewed quarterly by COO and finance department. Branch manager is required to update COO for any changes related to lease. A copy of the lease along with all other relevant items will be sent to finance department either by COO or branch manager. Current Status: 100% resolved
Show full finding ▾Hide full finding ▴Condition: The Organization was not properly including, excluding, and accounting for leases. Criteria: Internal controls over financial close process, should be in place and operating effectively to ensure that material misstatements are detected and corrected by management in a timely manner. Cause and Effect: Cause: Management did not properly design and implement controls over financial close, and the accounting for leases process. Effect: Leases commitments were not properly accounted for, excluded, and included in the Organizations books and records during the year. Recommendation: We recommend that management put controls in place to reconcile these accounts on a monthly or quarterly basis to ensure proper recognition of leases, financial team along with those who are familiar with the leases should work together to update the books and records accordingly. This process should documented and also be done at year end as well to make sure all leases and other financial close processes are done to ensure that the financials are free from material misstatements. Management Response: Lease contracts from 2024 and prior have been reviewed and recorded properly in accordance with ASC842. There were two new leases signed during 2024 that were related to future year commitments that were not sent to the accounting team; thus, they were not reflected on the Organization’s books and records at year end. Corrective Action Plan: Accounting staff will be trained to record monthly lease expenses according to their lease schedules and cash payments. These accounts will be reviewed quarterly, including year end and signed off by a qualified accountant. Management will create a tracking sheet to monitor the renewal, termination, expiration dates, and review of their schedules. It will be reviewed quarterly by COO and finance department. Branch manager is required to update COO for any changes related to lease. A copy of the lease along with all other relevant items will be sent to finance department either by COO or branch manager. Current Status: 100% resolved
Accounting staff will be trained to record monthly lease expenses according to their lease schedules and cash payments. These accounts will be reviewed quarterly, including year end and signed off by a qualified accountant. Management will create a tracking sheet to monitor the renewal, termination, expiration dates, and review of their schedules. It will be reviewed quarterly by COO and finance department. Branch manager is required to update COO for any changes related to lease. A copy of the lease along with all other relevant items will be sent to finance department either by COO or branch manager.
Statement of Condition Management missed reporting two federal grants (project 920 and 947) on the December 31, 2023 SEFA. Project 920 with National Institutes of Health (NIH), CFDA 93.838 and Project 947 with Dept of Health & Human Services, CFDA 93.991. Management could not obtain CFDA numbers from the funders at that time and believed that the two grants are not federal grants. Management assumed that if the funders do not provide or do not know if the contracts have CFDA numbers, it meant that the grants are not federal grants, and thus they are not part of SEFA. The two above-mentioned grants were brought up during the 2024 audit. Management successfully retrieved the CFDA for the two Federal grants. Based on our records, expenditure for projects 920 and 947 were $59,161 and $89,072 respectively. Total 2023 Federal expenditures including project 920 and 947 should be $2,462,775 instead of $2,314,542 as previously reported. A 6 percent of 2023 total expenditure grant was under reported. Recommendation Management should be in consistent contact with the project compliance manager to see what accounts should be included and excluded. The project compliance manager should have appropriate knowledge through proper supporting documentation received from third parties that verifies the Statement of Federal Awards is properly presented. Without this control in place the Statement of Federal Awards could be overstating or understanding the proper amount of federal funds the Corporation will receive. Current Status 100% resolved Corrective Action Plan: Management acknowledged the importance of reporting grants properly for all accounting matters, especially Federal grants, to be compliant with Government agency, and accounting principles. Management has reviewed and revised our internal control for grant management. As such, new grants and contracts will be reviewed by branch/program managers as well as COO for compliance purposes. The project team, including project manager, support staff, financial staff and COO, will hold a kick-off meeting to go over the project type, the project's goals, expected outcomes and reporting. For any missing CFDA, the COO is responsible for identifying and searching using government database and other resources to find the information for reporting. All steps of verification are reflected in project briefs with initials by Project Manager, COO, Finance and HR team. Everyone is accountable for the accuracy and completeness of the information. A grant tracking sheet will also be reviewed per quarter.
Show full finding ▾Hide full finding ▴Statement of Condition Management missed reporting two federal grants (project 920 and 947) on the December 31, 2023 SEFA. Project 920 with National Institutes of Health (NIH), CFDA 93.838 and Project 947 with Dept of Health & Human Services, CFDA 93.991. Management could not obtain CFDA numbers from the funders at that time and believed that the two grants are not federal grants. Management assumed that if the funders do not provide or do not know if the contracts have CFDA numbers, it meant that the grants are not federal grants, and thus they are not part of SEFA. The two above-mentioned grants were brought up during the 2024 audit. Management successfully retrieved the CFDA for the two Federal grants. Based on our records, expenditure for projects 920 and 947 were $59,161 and $89,072 respectively. Total 2023 Federal expenditures including project 920 and 947 should be $2,462,775 instead of $2,314,542 as previously reported. A 6 percent of 2023 total expenditure grant was under reported. Recommendation Management should be in consistent contact with the project compliance manager to see what accounts should be included and excluded. The project compliance manager should have appropriate knowledge through proper supporting documentation received from third parties that verifies the Statement of Federal Awards is properly presented. Without this control in place the Statement of Federal Awards could be overstating or understanding the proper amount of federal funds the Corporation will receive. Current Status 100% resolved Corrective Action Plan: Management acknowledged the importance of reporting grants properly for all accounting matters, especially Federal grants, to be compliant with Government agency, and accounting principles. Management has reviewed and revised our internal control for grant management. As such, new grants and contracts will be reviewed by branch/program managers as well as COO for compliance purposes. The project team, including project manager, support staff, financial staff and COO, will hold a kick-off meeting to go over the project type, the project's goals, expected outcomes and reporting. For any missing CFDA, the COO is responsible for identifying and searching using government database and other resources to find the information for reporting. All steps of verification are reflected in project briefs with initials by Project Manager, COO, Finance and HR team. Everyone is accountable for the accuracy and completeness of the information. A grant tracking sheet will also be reviewed per quarter.
Management acknowledged the importance of reporting grants properly for all accounting matters, especially Federal grants, to be compliant with Government agency, and accounting principles. Management has reviewed and revised our internal control for grant management. As such, new grants and contracts will be reviewed by branch/program managers as well as COO for compliance purposes. The project team, including project manager, support staff, financial staff and COO, will hold a kick-off meeting to go over the project type, the project's goals, expected outcomes and reporting. For any missing CFDA, the COO is responsible for identifying and searching using government database and other resources to find the information for reporting. All steps of verification are reflected in project briefs with initials by Project Manager, COO, Finance and HR team. Everyone is accountable for the accuracy and completeness of the information. A grant tracking sheet will also be reviewed per quarter.
FAC accepted this audit on September 27, 2021 — management decision was due March 27, 2022.
The audited financial statements for the Organization were not filed electronically with the federal clearinghouse within nine months of the fiscal years ended December 31, 2019 and 2018.
Show full finding ▾Hide full finding ▴The audited financial statements for the Organization were not filed electronically with the federal clearinghouse within nine months of the fiscal years ended December 31, 2019 and 2018.
Recommendation Management should institute procedures to ensure that the financial statements are electronically filed with the federal clearing house within nine months of the fiscal year end of the Organization. Management Response: Current Status: 100%: 2018 response: In prior years, audited financials were submitted to the Federal Clearing House at least 3 months before the Sept 30th deadline. In 2019, the organization was a victim of ransom ware. The ransom occurred around the beginning of audit field work preparation. All of IT network was under seize and we did not have access to our accounting system. Consequently, the takeover of our systems caused considerable set back in meeting the deadline 2019 response: FY 2019 was an anomaly. The COVID-19 pandemic had a significant impact to the continuity needed to follow our normal audit process. Intermittently, program and financial staff were affected by the pandemic, consequently staff shortages. Many branches had to self-quarantine and staff were forced to work from home. Disconnect from the organizational team and files not centralized because file-share server was in process of being rebuilt, caused disruption. The correction plan implemented is constructed to handle unexpected disruptions- the cause of not meeting our audit deadlines Corrective Action Plan: To address 2018 finding: We contracted a new IT Management Provider and rebuilt our network system. We now have reliable cyber security protection and an on-premise as well as a cloud-based back up system. We?ve implemented cyber-security protection, server backup, software updates, and up-to-data IT equipment allowing us to strengthen the internal control weakness which caused a major interruption of audit preparedness and meeting the federal clearing house deadline. To address 2019 finding: We added a financial manager to the HQ accounting team. She will add to the review process, perform program and grant accounting tasks, bridge the communication gap between program and accounting to ensure financial and program compliance. The Branch managers hired additional program coordinators. In essence, the organization will follow internal control ?best practices? by cross training other staff to fill-in when the primary employee responsible for certain fiscal responsibilities is not available to work. Realizing the above anomaly faced by the organization, the Board of Directors formalized an Ad Hoc Team that now serves as the Finance Committee.
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