Weekly Audit Summary: Insights and Trends for Grant-Funded Organizations (Week of November 24, 2025)

As we approach the end of the year, the audit landscape continues to evolve, providing valuable insights for grant-funded organizations. This week, we published a total of 188 audits, of which 49 contained findings. Notably, all findings were classified as material weaknesses, emphasizing the critical need for organizations to address compliance and internal control issues proactively.

This Week at a Glance

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Key Trends and Findings

1. Material Weaknesses Dominate Findings: With 259 total findings across the 49 audits that reported issues, the exclusive classification of material weaknesses signals a systemic challenge in compliance efforts. Organizations must prioritize strengthening their internal controls to mitigate risks of significant deficiencies.

2. Federal Expenditures Remain High: This week saw total federal expenditures amounting to over $1 billion. The absence of questioned costs is a positive sign; however, the presence of material weaknesses raises red flags that could affect future funding and compliance.

3. Leading States in Audit Counts: Illinois, New York, and California topped the list of states with the highest number of audits. Organizations in these states should particularly focus on compliance strategies and learning from the findings of their counterparts.

Corrective Action Plans: A Path Forward

Organizations facing material weaknesses should not only acknowledge the findings but also implement comprehensive corrective action plans. Here are a few examples:

• J-TECH INSTITUTE, INC.: Management has committed to compliance by engaging auditors for subsequent audits and has taken immediate steps to enhance awareness of audit requirements. This proactive stance is vital for future audit preparedness.

• PROJECT EXPEDITE JUSTICE: The organization is enhancing its procurement processes to ensure compliance with federal standards, thus addressing a key area of vulnerability.

• St. Thomas East End Medical Center Corporation: They plan to strengthen internal controls related to allowable costs by providing staff training on identifying unallowable costs and improving expense coding.

• Community Based Public Safety Collective, Inc.: Acknowledging delays in filing their reporting package, they are taking steps to ensure timely completion in the future.

Insights for Organizations

As we move deeper into the audit season, organizations should take a proactive approach to address findings. Here are some actionable insights:

• Implement Regular Training: Conduct training sessions for staff on compliance and reporting requirements to ensure all team members are informed and prepared.
• Enhance Internal Controls: Establish rigorous internal controls that include timely reconciliations and documentation processes to prevent material weaknesses.
• Engage with Auditors: Foster a relationship with auditors to gain insights on compliance and to understand the expectations better.

In summary, this week’s audit findings serve as a crucial reminder for grant-funded organizations to prioritize compliance and internal control measures. By learning from the findings of others, organizations can enhance their audit readiness and ensure the effective use of federal funds.