EIN: 954723901
UEI: X84HFPMNFVK8
Audited by: THE PUN GROUP, LLP
Oversight agency: 93 [Department of Health and Human Services]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 30, 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 30, 2026 (152 days ago).
What is a management decision? →Criteria: Sound financial reporting controls and COSO principles require timely, documented monthly bank reconciliations to ensure completeness and accuracy of cash and to detect errors or irregularities promptly. GAAP also presumes monitoring controls around cash balances and timely reconciliation to support accurate presentation in the financial statements. Condition/Context: For the year ended December 31, 2024, bank reconciliations for 11 of 12 months were not completed until mid-June 2025 (approximately six to fifteen months late). Cause: Staffing turnover and system/process changes during 2024, coupled with competing operational priorities, delayed routine month-end close activities. Effect/Possible Effect: Increased risk that cash balances and related activity could be misstated or that errors/irregularities could remain undetected for extended periods. Reduced usefulness of interim financial information for management and the board. Questioned Costs: Not applicable (financial statement control finding). Recommendation: Establish a written close calendar requiring completion and review of all bank reconciliations within 10 business days after month-end; implement a standardized reconciliation checklist with dated preparer/reviewer sign-offs; monitor timeliness monthly and report status to the finance committee until sustained compliance is achieved. Views of Responsible Officials: Management’s response and corrective action plan will be provided in the separate Corrective Action Plan.
Show full finding ▾Hide full finding ▴Criteria: Sound financial reporting controls and COSO principles require timely, documented monthly bank reconciliations to ensure completeness and accuracy of cash and to detect errors or irregularities promptly. GAAP also presumes monitoring controls around cash balances and timely reconciliation to support accurate presentation in the financial statements. Condition/Context: For the year ended December 31, 2024, bank reconciliations for 11 of 12 months were not completed until mid-June 2025 (approximately six to fifteen months late). Cause: Staffing turnover and system/process changes during 2024, coupled with competing operational priorities, delayed routine month-end close activities. Effect/Possible Effect: Increased risk that cash balances and related activity could be misstated or that errors/irregularities could remain undetected for extended periods. Reduced usefulness of interim financial information for management and the board. Questioned Costs: Not applicable (financial statement control finding). Recommendation: Establish a written close calendar requiring completion and review of all bank reconciliations within 10 business days after month-end; implement a standardized reconciliation checklist with dated preparer/reviewer sign-offs; monitor timeliness monthly and report status to the finance committee until sustained compliance is achieved. Views of Responsible Officials: Management’s response and corrective action plan will be provided in the separate Corrective Action Plan.
The untimely completion of bank reconcilations during the audit period was due to changes in staffing and a transition to a new credit card provider, which created delays in the reconcilation process. To address this, the organization has implemented a calendar-based tracking system to ensure that all reconciliations are completed and documented promptly each month. In addition, reconcilation responsibilities have been reassigned and reinforced through updated financial procedures. Managment believes that these steps will ensure reconciliations are completed within the required timeframe moving forward and the risk of untimely reconciliations will be mitigated.
Criteria: Management is responsible for ongoing evaluation of financial condition and liquidity and for performing the GAAP-required going-concern assessment. Effective internal control over financial reporting includes robust budget-to-actual monitoring, timely corrective actions to align spending with available resources, and formal documentation of liquidity assessments. Condition/Context: The Organization incurred continuing losses in fiscal year 2024, primarily due to lower-than-budgeted recoveries of the 15% administrative allowance on the All Children Thrive award and insufficient cost reductions to offset revenue shortfalls. At December 31, 2024 and continuing into 2025, the Organization financed operating shortfalls using a $300,000 line of credit and extended vendor terms. These conditions were significant factors in the auditor’s conclusion that substantial doubt exists regarding the Organization’s ability to continue as a going concern (absent management’s plans). Cause: Heavy reliance on cost-reimbursable funding where subrecipients underspent, limited unrestricted fundraising, and delayed budget adjustments to reduce the cost structure. Effect/Possible Effect: Heightened risk of financial statement misstatement if required going-concern disclosures, or related measurement considerations, are incomplete or not timely. Continued strain on liquidity could impair the Organization’s ability to meet obligations as they come due. Questioned Costs: Not applicable (financial statement control finding). Recommendation: Formalize a liquidity and financial condition monitoring plan with (1) board-approved triggers for timely cost containment, (2) monthly cash-flow forecasts tied to grant billing reality, (3) specific targets for unrestricted fundraising/diversification, and (4) documentation of the going-concern evaluation each reporting period, including assessment of the feasibility and timing of management’s plans. Views of Responsible Officials: Management’s response and corrective action plan will be provided in the separate Corrective Action Plan.
Show full finding ▾Hide full finding ▴Criteria: Management is responsible for ongoing evaluation of financial condition and liquidity and for performing the GAAP-required going-concern assessment. Effective internal control over financial reporting includes robust budget-to-actual monitoring, timely corrective actions to align spending with available resources, and formal documentation of liquidity assessments. Condition/Context: The Organization incurred continuing losses in fiscal year 2024, primarily due to lower-than-budgeted recoveries of the 15% administrative allowance on the All Children Thrive award and insufficient cost reductions to offset revenue shortfalls. At December 31, 2024 and continuing into 2025, the Organization financed operating shortfalls using a $300,000 line of credit and extended vendor terms. These conditions were significant factors in the auditor’s conclusion that substantial doubt exists regarding the Organization’s ability to continue as a going concern (absent management’s plans). Cause: Heavy reliance on cost-reimbursable funding where subrecipients underspent, limited unrestricted fundraising, and delayed budget adjustments to reduce the cost structure. Effect/Possible Effect: Heightened risk of financial statement misstatement if required going-concern disclosures, or related measurement considerations, are incomplete or not timely. Continued strain on liquidity could impair the Organization’s ability to meet obligations as they come due. Questioned Costs: Not applicable (financial statement control finding). Recommendation: Formalize a liquidity and financial condition monitoring plan with (1) board-approved triggers for timely cost containment, (2) monthly cash-flow forecasts tied to grant billing reality, (3) specific targets for unrestricted fundraising/diversification, and (4) documentation of the going-concern evaluation each reporting period, including assessment of the feasibility and timing of management’s plans. Views of Responsible Officials: Management’s response and corrective action plan will be provided in the separate Corrective Action Plan.
We are taking immediate, multi-layered action to strengthen financial stability and restore a positive operating balance. The Board of Directors is establishing an emergency fundraising committee to raise $1 million over the next nine months. The committee is composed of current and former board members, as well as long-standing influential supporters, who have a provden ability to mobilize resources quickly. In parallel, we are convening a staff leadership committee composed of the organization's most experienced and innovative staff to design and advance high-quality proposals to private foundations, building on our strong track record of successful grant-making partnerships.
FAC accepted this audit on August 17, 2024 — management decision was due February 17, 2025.
FAC accepted this audit on September 27, 2023 — management decision was due March 27, 2024.
FAC accepted this audit on August 3, 2022 — management decision was due February 3, 2023.
Reference Number ? 2021-002 Assistance Listing Number, Federal Agency, and Program Name ? 93.738, U.S. Department of Health and Human Services, Racial and Ethnic Approaches to Community Health Finding Type ? Noncompliance Repeat Finding ? No Compliance Requirement ? Cash Management Criteria ? Non-federal entities must minimize the time elapsing between the transfer from the US Treasury and disbursement by the non-federal entity (2 CFR section 200.305(b)). Condition ? Audit testing showed that there were three instances of monthly cash drawdowns being duplicated which resulted in a failure to minimize the time elapsing between the transfer and disbursement of federal funds. Questioned Costs ? None. Cause ? Federal cash draw downs were not always properly reviewed for accuracy. Effect ? Failure to minimize the time elapsing between the transfer and expenditure of federal funds can lead to sanctions and penalties. Context ? The sample size was twelve, resulting in an error rate of 25% Recommendation ? Procedures should be implemented to help ensure that the time elapsing between the transfer and expenditure of federal funds is minimized. Views of Responsible Officials ? We concur. Please see our corrective action plan attached.
Show full finding ▾Hide full finding ▴Reference Number ? 2021-002 Assistance Listing Number, Federal Agency, and Program Name ? 93.738, U.S. Department of Health and Human Services, Racial and Ethnic Approaches to Community Health Finding Type ? Noncompliance Repeat Finding ? No Compliance Requirement ? Cash Management Criteria ? Non-federal entities must minimize the time elapsing between the transfer from the US Treasury and disbursement by the non-federal entity (2 CFR section 200.305(b)). Condition ? Audit testing showed that there were three instances of monthly cash drawdowns being duplicated which resulted in a failure to minimize the time elapsing between the transfer and disbursement of federal funds. Questioned Costs ? None. Cause ? Federal cash draw downs were not always properly reviewed for accuracy. Effect ? Failure to minimize the time elapsing between the transfer and expenditure of federal funds can lead to sanctions and penalties. Context ? The sample size was twelve, resulting in an error rate of 25% Recommendation ? Procedures should be implemented to help ensure that the time elapsing between the transfer and expenditure of federal funds is minimized. Views of Responsible Officials ? We concur. Please see our corrective action plan attached.
? Criteria: Non-federal entities must minimize the time elapsing between the transfer from the US Treasury and disbursement by the non-federal entity (2 CFR section 200.305(b)). ? Condition: Audit testing showed that there were three instances of monthly cash drawdowns being duplicated which resulted in a failure to minimize the time elapsing between the transfer and disbursement of federal funds. ? Public Health Advocates? Response: We concur. ? Corrective Action Plan: Public Health Advocates has implemented procedures for a monthly drawdown immediately after closing the month. Current timeline is the last week of the following month. Timing between expenditure and funds transfer has been reduced to 3 weeks. ? Person responsible for corrective action: Nagham Sabah and Hector Ramirez. ? The anticipated completion date: Completed.
Reference Number ? 2021-003 Assistance Listing Number, Federal Agency, and Program Name ? 93.738, U.S. Department of Health and Human Services, Racial and Ethnic Approaches to Community Health Finding Type ? Noncompliance Repeat Finding ? No Compliance Requirement ? Reporting Criteria ? Amounts reported on Federal Financial Reports (FFRs) should agree to the accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards (2021 Compliance Supplement, page 3-L-6). Condition ? Amounts reported on the FFRs did not agree to the accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards. Questioned Costs ? None. Cause ? The quarterly FFRs were not always properly reviewed for accuracy. Effect ? Errors on the quarterly FFRs can lead to sanctions and penalties. Context ? The precise errors that are manifest in this finding have not been identified. Recommendation ? Procedures should be implemented to help ensure that the amounts reported on the FFRs agree to the accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards. Views of Responsible Officials ? We concur. Please see our corrective action plan attached.
Show full finding ▾Hide full finding ▴Reference Number ? 2021-003 Assistance Listing Number, Federal Agency, and Program Name ? 93.738, U.S. Department of Health and Human Services, Racial and Ethnic Approaches to Community Health Finding Type ? Noncompliance Repeat Finding ? No Compliance Requirement ? Reporting Criteria ? Amounts reported on Federal Financial Reports (FFRs) should agree to the accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards (2021 Compliance Supplement, page 3-L-6). Condition ? Amounts reported on the FFRs did not agree to the accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards. Questioned Costs ? None. Cause ? The quarterly FFRs were not always properly reviewed for accuracy. Effect ? Errors on the quarterly FFRs can lead to sanctions and penalties. Context ? The precise errors that are manifest in this finding have not been identified. Recommendation ? Procedures should be implemented to help ensure that the amounts reported on the FFRs agree to the accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards. Views of Responsible Officials ? We concur. Please see our corrective action plan attached.
? Criteria: Amounts reported on Federal Financial Reports (FFRs) should agree to the accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards (2021 Compliance Supplement, page 3-L-6). ? Condition: Amounts reported on the FFRs did not agree to the accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards. ? Public Health Advocates? Response: We concur. ? Corrective Action Plan: Public Health Advocates has implemented a procedure adding an additional layer of review before submitting the quarterly and annual FFR. The Finance Manager will prepare the reports and the CFO will review and approve before submitting them. ? Person responsible for corrective action: Nagham Sabah and Hector Ramirez ? The anticipated completion date: Completed.
FAC accepted this audit on August 15, 2021 — management decision was due February 15, 2022.
FAC accepted this audit on July 29, 2020 — management decision was due January 29, 2021.
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