OCAB Community Action Agency, IncNon-Profit

Management is actively working on retaining and recruiting knowledgeable personnel in the finance and account department to enhance the department's effectiveness and efficiency. OCAB has established agreements with account professionals to improve the training and efficiency of staff in the fiscal office, focusing on areas such as financial compliance, daily fiscal responsibilities month end closing and budget analysis. OCAB as slso hired 2 fiscal personnel in this department. We believe significant progress has been made since the last reorting period. A wage and benefits was completed and utilized in the process. OCAB believes that the measures taken will ensure compliance with all department of Health & Human Services regulations.

2023-002

We agree with the finding and the agnecy will submit the requeired annual fiancial statement before the extended due date of July 31, 2025.

To the U.S. Department of Health and Human Services Orangeburg-Calhoun-Allendale-Bamberg Community Action Agency, Inc. respectfully submits the following corrective action plan for the year ended January 31, 2021. Name and Address of independent public accounting firm: Tabb & Tabb, LLC Certified Public Accountants 260 Peachtree Street, NW, Suite 1201 Atlanta, GA 30303 Audit Period: February 1, 2020 ? January 31, 2021 The findings from the January 31, 2021, Schedule of Findings are discussed below. The findings are numbered consistently with the number assigned in the schedule. The Summary of Audit Results has two findings which are addressed below. Finding ? Item 2021 - 01 Internal Control and Compliance over Financial Reporting - Financial Statement Audit Criteria: 2 CFR Section 200.510 (a) - The auditee shall prepare financial statements that reflect its financial position, results of operation or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Statement of Condition: In order for the financial statements to be presented in accordance with generally accepted accounting principles and Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, significant adjustments were necessary during the audit of the financial statements at January 31, 2021. Bank statements were not reconciled by Agency personnel on a timely basis. Subsidiary schedules to support the financial statements were not produced on a timely basis. Recommendation: We recommend that management assess the current accounting staff and their workloads to determine if staffing needs to be increased through the hiring of additional qualified accounting professionals. We further recommend that existing and future accounting staff receive the necessary training to perform their jobs effectively and timely. Management should receive accurate, interim financial statements throughout the year with an Agency-wide statement of financial position and program statements of revenue and expenditures with budget to actual comparisons. Annual financial statements should be prepared in advance of the audit. Auditee Response: We agree with the finding. Management is in the process of assessing the organizational structure and capacity to provide adequate financial reporting. Staff will be hired and trained on policies and procedures to ensure proper reconciling and closing out of the accounting system and grant activity each month in a timely manner. The hiring of accounting staff and the training of the staff will be implemented by October 31, 2022. Finding ? Item 2021 - 02 Internal Control and Compliance over Financial Reporting - Financial Statement Audit Criteria: The U. S. Department of Health and Human Services has implemented the Uniform Guidance at 45 CFR ? 75. According to the Subpart F-Audits 45 CFR ?75.501(a) non-federal entities that expend $750,000 or more during the non-Federal entity's fiscal year in federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of this part. Guidance on determining Federal awards expended is provided in 45 CFR ? 75.502. The regulation obligates organizations expending federal grant funds over $750,000 to submit their required annual financial statement information within nine months of their year end to the Federal Audit Clearing House electronically via the Internet. Statement of Condition: The required annual financial statement submission to the Federal Audit Clearing House for the year ended January 31, 2020 was made after the extended submission deadline. Recommendation: We recommend that the required annual financial statement submission to the Federal Audit Clearing House be made on a timely basis for the 2021 financial statements and for all future required submissions. Auditee Response: We agree with the finding and the Agency will submit the required annual financial statement submission to the Federal Audit Clearing House for the fiscal year ended January 31, 2021 before the extended due date of April 30, 2022. Orangeburg-Calhoun-Allendale-Bamberg Community Action Agency