EIN: 741611455
UEI: DULVSALZ7153
Audited by: McConnell Jones LLP
Oversight agency: 93 [Department of Health and Human Services]
Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 30, 2024. 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 30, 2025 (516 days ago).
What is a management decision? →During our audit, we identified five (5) material audit adjustments. Consequently, a material misstatement would have occurred in the Organization’s financial statements. Cause: While the Organization’s internal controls over financial reporting are appropriately designed, they were not fully implemented to prevent or detect material misstatements in the financial statements prepared according to U.S. Generally Accepted Accounting Principles (GAAP). Effect: The Organization may fail to prevent or detect material misstatements in its financial statements. Context: Adjustments were required to correct the following: • Cash • Grant receivables • Prepaid expenses • Buildings and construction in process • Right of use assets and liabilities • Notes Payable • Foundation and corporate grants • Other income • Accounts payable and expense Recommendation: We recommend that the Organization update its accounting manual to include a year-end checklist with standardized procedures for financial reporting and close processes. The audit committee should review and approve the financial statements and supplemental schedules before the audit begins. This will ensure that all necessary adjustments and disclosures are made to the financial statements for year-end reporting. Status: Corrective action plan was created on August 12, 2024 in response to receiving the audit finding.
Show full finding ▾Hide full finding ▴nternal control over financial reporting Criteria: An effect ve system of internal controls contemplates an adequate system for recording and processing entries material to the financial statements. Condition: During our audit, we identified five (5) material audit adjustments. Consequently, a material misstatement would have occurred in the Organization’s financial statements. Cause: While the Organization’s internal controls over financial reporting are appropriately designed, they were not fully implemented to prevent or detect material misstatements in the financial statements prepared according to U.S. Generally Accepted Accounting Principles (GAAP). Effect: The Organization may fail to prevent or detect material misstatements in its financial statements. Context: Adjustments were required to correct the following: • Cash • Grant receivables • Prepaid expenses • Buildings and construction in process • Right of use assets and liabilities • Notes Payable • Foundation and corporate grants • Other income • Accounts payable and expense Recommendation: We recommend that the Organization update its accounting manual to include a year-end checklist with standardized procedures for financial reporting and close processes. The audit committee should review and approve the financial statements and supplemental schedules before the audit begins. This will ensure that all necessary adjustments and disclosures are made to the financial statements for year-end reporting. Status: Corrective action plan was created on August 12, 2024 in response to receiving the audit finding.
RE: Management Response to 2023 Annual Audit We acknowledge the observations and recommendations made during the Houston Area Urban League's 2023 Annual Audit. The Board of Directors Audit Committee and the Houston Area Urban League's Executive Leadership Team have reviewed the recommendations. In response to the recommendation, we have outlined the action items to support implementation. A review and update of our Financial Policies and Procedures and the Finance Manual is scheduled for completion by year-end. Simultaneously, as we deploy innovative technology to streamline operations and drive efficiencies, we will document workflow procedures to ensure compliance and controls. A key element to defining the written procedures will be the validation of process controls. The target date for completion is December 31 , 2024. As we analyze organizational changes that will ensure the adherence to the recommendations, we are assured that the finance team is knowledgeable of their respective roles and responsibilities to adequately perfonn duties. In response to the recommendations related to the Schedule of Expenditures of Federal A wards, (SEF A) we have designated a Grants Analyst who is responsible for ensuring the adhering to SEFA requirements as a component of the month-end closing process. We will also reference SEF A for recording of journal entries and the reconciliation process. Lastly, the Finance Department will also establish reviews with the Board of Directors ' Audit Committee and Finance Committee to simulate a high-level audit process. This review should support the identification of potential areas of concern for immediate resolution.
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