Finding Number: 2019-003 Data Collection Form Late Submission Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - The Organization did not submit the December 31, 2019 data collection form and reporting package to the Federal Audit Clearinghouse in a timely matter. Criteria - The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause - The Organization's December 31, 2019 audit was not completed prior to the due date. Effect - The Organization was not in compliance with audit submission requirements, resulting in a material weakness in internal control over compliance. Recommendations - We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.
Finding Number: 2019-003 Data Collection Form Late Submission Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - The Organization did not submit the December 31, 2019 data collection form and reporting package to the Federal Audit Clearinghouse in a timely matter. Criteria - The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause - The Organization's December 31, 2019 audit was not completed prior to the due date. Effect - The Organization was not in compliance with audit submission requirements, resulting in a material weakness in internal control over compliance. Recommendations - We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.
Finding Number: 2019-003 Data Collection Form Late Submission Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - The Organization did not submit the December 31, 2019 data collection form and reporting package to the Federal Audit Clearinghouse in a timely matter. Criteria - The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause - The Organization's December 31, 2019 audit was not completed prior to the due date. Effect - The Organization was not in compliance with audit submission requirements, resulting in a material weakness in internal control over compliance. Recommendations - We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.
Criteria: Under 2 CFR 200.512(a), an auditee must submit the single audit reporting package, including financial statements and the schedule of expenditures of federal awards (SEFA), no later than 30 days after receipt of the auditor’s report or nine months after the fiscal year-end, whichever comes first. Company management is responsible for ensuring the financial statements are prepared and issued timely to meet the Single Audit submission deadline established by the Federal Audit Clearinghouse (FAC). Statement of Condition: The auditee’s single audit financial statements were not issued by the required due date. The fiscal year ended on December 31, 2019, making the reporting package due no later than September 30, 2020. However, the audit report date is December 17, 2025, resulting in the late submission of the Single Audit reporting package to the FAC. Additionally, the audit reports for the years ended December 31, 2020 to 2024 have not yet been issued. Cause of Condition: The delay occurred because of employee turnover and lack of adequate internal controls over financial reporting timelines. The auditee did not have sufficient processes in place to ensure the timely preparation and issuance of financial statements. Effect of Condition: Because the financial statements and reporting package were issued late the auditee failed to comply with federal reporting requirements, federal agencies and pass-through entities did not receive timely financial and compliance information needed for monitoring and oversight, and the delay increases the risk that financial reporting issues may go undetected or unresolved. Questioned Costs: None. Recommendation: We recommend that management (1) strengthen internal controls over year-end financial reporting to ensure timely completion of the audit, (2) implement a detailed closing schedule and tracking process to monitor deadlines, (3) ensure adequate staffing or external support during the financial statement preparation and audit process, and (4) conduct periodic reviews to confirm compliance with federal Single Audit submission deadlines. Identification of Repeat Finding: This is a new finding. Views of Responsible Officials: Management understands and accepts the recommendation as outlined in the Corrective Action Plan.
2019-001 Untimely Single Audit Report Submission Federal Program – Capitalization Grants for Clean Water State Revolving Funds Criteria According to 2 CFR 200.512, the Uniform Guidance requires that a single audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted to the Federal Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition We noted during our audit that the City of McComb’s 2019 fiscal year Uniform Guidance audit and the reporting package were not submitted to the Federal Clearinghouse within nine (9) months of the City of McComb’s September 30, 2019 fiscal year end. Cause The City of McComb completed its Uniform Guidance audit more than nine (9) months after its September 30, 2019 fiscal year end. Effect The City of McComb is not in compliance with report submission requirements to the Federal Clearinghouse. Questioned Costs None. Context/Proper Perspective Not applicable. Element of Finding This finding is not a repeat finding. Recommendation We recommend that management establish procedures to ensure the Uniform Guidance required audit is completed in a timely manner so that the City of McComb’s audit report and other required items of the reporting package are submitted to the Federal Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. View of Responsible Official of the City of McComb The management of the City of McComb agrees with the finding. See accompanying corrective action plan.
2019-001 Untimely Single Audit Report Submission Federal Program – Capitalization Grants for Clean Water State Revolving Funds Criteria According to 2 CFR 200.512, the Uniform Guidance requires that a single audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted to the Federal Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition We noted during our audit that the City of McComb’s 2019 fiscal year Uniform Guidance audit and the reporting package were not submitted to the Federal Clearinghouse within nine (9) months of the City of McComb’s September 30, 2019 fiscal year end. Cause The City of McComb completed its Uniform Guidance audit more than nine (9) months after its September 30, 2019 fiscal year end. Effect The City of McComb is not in compliance with report submission requirements to the Federal Clearinghouse. Questioned Costs None. Context/Proper Perspective Not applicable. Element of Finding This finding is not a repeat finding. Recommendation We recommend that management establish procedures to ensure the Uniform Guidance required audit is completed in a timely manner so that the City of McComb’s audit report and other required items of the reporting package are submitted to the Federal Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. View of Responsible Official of the City of McComb The management of the City of McComb agrees with the finding. See accompanying corrective action plan.
Criteria: Per the requirements contained in 2 CFR 200.512 (a), the auditee is responsible for submitting the data collection form and the reporting package, including the auditors’ reports, within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period to the federal audit clearinghouse. Condition: The audit package and data collection form were not submitted to the Federal Audit Clearinghouse for the reporting year September 30, 2019 within nine months after the end of the audit period. Citation: 2 CFR 200.512 (a) Cause: Account analyses were not performed in a timely manner throughout the year, and this led to delays in the start of the audit process. Effect: PAX is deficient in its submission of the required audit reporting package and data collection form. As such, PAX is noncompliant with the reporting requirements. Questioned Costs: None. Context: This was a universal matter that impacted the entity as a whole. Repeat Finding: Yes Recommendation: We recommend that PAX implement appropriate policies, procedures, and controls to ensure that future submissions of the Uniform Guidance reports are filed timely. View of Responsible Officials: See Corrective Action Plan attached.
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Agency: U.S. department of Agriculture Federal Program: WIC Farmers'Market Nutrition ans Senior Farmers' Market Nutrition Programs CFDA: 10.572, 10.576 Grant Number: 201818Y860441/201818Y86741 201919Y860441/201919Y86741 Grant Period October 1, 2017 - September 30, 2018 October 1, 2018 -September 30, 2019 Compliance Reporting Category Noncompliance Criteria 2 CFR Part 200.512 - Report Submission General established that (1)The audit must be completed, and the data collection form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If tge due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The Data Collection Form forthe fiscal year ended Jine 30, 2019 was not timely submitted to the federal government. Effect AEDA is not in compliance with the reporting requirement set forth by federal regulation, which could affect the future of its federal grants. Cause AEDA has not been able to provide the necessary information for the preparation of the single auidt report on a timely basis inorder to complete its reporting reuirements for the fiscal year 2019. Prior Year Audit Finding 2018-003 Recommendation We recommend AEDA to assemble, before the year-end, an audit team to be in-charge of the single audit process. Also, AEDA's management should implement adequate procedures to timely close its accounting records, subsidiaries and reconciliations, which are esential for the preparation of the fiscal year-end financial statements and reports on an accurate timely manner. Questioned Costs None Management's Response Refer to Grantee's Corrective Action Plan.
Finding 2018-001 - Timely Completion of Audit under Uniform Guidance, Loan Agreement, and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – Federal Program CFDA 10.766/10.780 Community Facilities Loans and Grants Cluster) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.512 (a)(1) states that the auditee must complete and submit the single audit report (including financial statements and the schedule of expenditures of federal awards) within nine months of the organization’s year-end. In addition, a Workout Agreement with USDA Rural Development required completion of the single audit by November 15, 2020 to comply with its original community program loan agreement with USDA. Condition and Context: The auditors were not engaged until December 2020, fifteen months after the due date. Shortly thereafter, the previous audit firm merged with the current audit firm, and due to COVID-19, staffing and scheduling issues, and delays in responding to audit requests, the completion of the audit was delayed significantly. Cause: Lack of planning for the audit to begin prior to the December 31, 2018 year end. Effect: The audit was completed well beyond the due date of September 30, 2019. Although it has not occurred as of this report date, the Government has the right to declare the entire balance immediately due and payable. Questioned Costs: None Recommendation: Management should determine prior to each year-end if an audit is required based upon that years’ grant funding and begin planning prior to year-end. In addition, responsibilities should be assigned to staff for timely completion of audit work and requested information. Views of Responsible Officials and Planned Corrective Actions: The 2023 staffing plan includes the addition of a controller and financial analyst. Initially we anticipate this controller to be a half time position growing to full time within 12-15 months. The analyst position will likely be a 2024 hire. These positions would be responsible for implementing the recommendation. We have created a job description for the controller and posted the position in early 2023. We did not find a suitable candidate and will repost.
Finding 2018-001 - Timely Completion of Audit under Uniform Guidance, Loan Agreement, and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – Federal Program CFDA 10.766/10.780 Community Facilities Loans and Grants Cluster) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.512 (a)(1) states that the auditee must complete and submit the single audit report (including financial statements and the schedule of expenditures of federal awards) within nine months of the organization’s year-end. In addition, a Workout Agreement with USDA Rural Development required completion of the single audit by November 15, 2020 to comply with its original community program loan agreement with USDA. Condition and Context: The auditors were not engaged until December 2020, fifteen months after the due date. Shortly thereafter, the previous audit firm merged with the current audit firm, and due to COVID-19, staffing and scheduling issues, and delays in responding to audit requests, the completion of the audit was delayed significantly. Cause: Lack of planning for the audit to begin prior to the December 31, 2018 year end. Effect: The audit was completed well beyond the due date of September 30, 2019. Although it has not occurred as of this report date, the Government has the right to declare the entire balance immediately due and payable. Questioned Costs: None Recommendation: Management should determine prior to each year-end if an audit is required based upon that years’ grant funding and begin planning prior to year-end. In addition, responsibilities should be assigned to staff for timely completion of audit work and requested information. Views of Responsible Officials and Planned Corrective Actions: The 2023 staffing plan includes the addition of a controller and financial analyst. Initially we anticipate this controller to be a half time position growing to full time within 12-15 months. The analyst position will likely be a 2024 hire. These positions would be responsible for implementing the recommendation. We have created a job description for the controller and posted the position in early 2023. We did not find a suitable candidate and will repost.