Audit 410080

A. Internal control 2024-001 – Material Difference Between Federal Expense Detail and Federal Expenses Reported Repeat Finding: No Criteria: Management is responsible for preparing an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with 2 CFR § 200.508(b), which requires the auditee to prepare financial statements including the SEFA in accordance with 2 CFR § 200.510, and 2 CFR § 200.510(b), which requires the SEFA to include total federal awards expended for each individual federal program. Amounts reported on the SEFA should be supported by underlying accounting records and detailed expenditure documentation. Federal expenditures reported for each program should be complete, accurate, and agree to the supporting detail. Condition: During the audit, the detailed expenditure support for Special Programs for the Aging, Title III, Part C, Nutrition Services (“Title III C”), ALN 93.045 federal expenditures did not agree to the original expenditures disclosed on the original SEFA. As a result, a journal entry in the amount of $34,005 was needed to reduce Title III C federal expenditures to agree the SEFA to the supporting expenditure detail. This deficiency is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Accordingly, we consider this matter to be a significant deficiency. The expenditure detail for Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers, ALN 93.044, and the Nutrition Services Incentive Program, ALN 93.053, both included in the Aging Cluster, agreed to the respective expenditure detail without material exception. Questioned Costs: None noted. Cause and Effect: Due to improper reconciliations of grant expenditures details to the amounts reported on the transmittal report to Areawide Aging Agency (AAA), the agency the funds were passed through, the original SEFA overstated Title III C expenditures by $34,005. Inaccurate reporting of federal expenditures on the SEFA may affect the accuracy of the federal awards presented for audit purposes and may impact audit planning, major program determination, and compliance reporting if not identified and corrected Recommendation: We recommend that management strengthen its SEFA preparation and review procedures to ensure that all federal expenditures reported on the SEFA are reconciled to the underlying accounting records and detailed expenditure support before the SEFA is provided for audit. This review should include documented verification of expenditures by program and Assistance Listing number, timely investigation of variances, and approval of any necessary adjustments prior to finalizing the SEFA. Management Response: Management concurs with the finding. Management will implement procedures to reconcile grant expenditure detail to the general ledger, SEFA, and transmittal reports by program and Assistance Listing number prior to submission for audit. The reconciliation will be reviewed and approved by management, and any variances will be investigated and corrected timely. Implementation is expected by July 30, 2026, and the responsible party is Tammy Vaughn, Executive Director.

B. Compliance Findings 2024-002 – Filing with the Federal Audit Clearing House Repeat Finding: No Criteria: The Federal Audit Clearinghouse (FAC) submission should occur earlier of nine months subsequent to year end or 30 days from report issuance. Condition: ASI did not submit its audit report to the FAC within nine months from year ending June 30, 2024. Cause and Effect: A change in key personnel over the ASI’s financial reporting resulted in delayed financial reporting close out of fiscal year 2024. As a result, the ASI was not in compliance with its required deadline to provide the FAC with its issued audit report within the established deadlines. Recommendation: We recommend the internal controls for reporting with the FAC be reviewed to ensure that future filings are completed within the established deadlines. Management Response: Management recognizes the need to submit its single audit reports to the FAC in accordance with the required deadlines in order to remain compliant with requirements. Management will make an effort to correct their timeliness and file within the appropriate deadlines going forward.