Finding Text
Criteria: The Organization is required to submit the Data Collection Form and the reporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s reports or 9 months after the end of the year ended under audit. Condition: The Organization did not submit the 2023 Data Collection form within the required timeframe. Cause: The Organization did not have sufficient internal controls in place to ensure federal reporting deadlines are met. Effect: The Organization did not comply with federal reporting requirements. Questioned Costs: N/A Perspective Information: This issue was limited to the late submission of the Data Collection Form. The submission was ultimately made; however, it occurred after the required deadline due to accounting issues. Repeat Findings: This is not a repeat finding. Recommendation: The Organization should follow established controls to ensure timely submission of the Data Collection Form. This should include assignment of responsibility to a designated official and be monitored by management. View of Responsible Officials and Planned Corrective Action: Bauer Family Resources went through a complete accounting department turnover by early 2023. Wipfli, Inc, an outsourced accounting firm, was contracted during this transition until a new CFO and accounting team could be hired and trained. The outsourced accounting firm spent all of 2023 learning the accounting functions of the company, establishing internal controls, managing cash flow, and ensuring proper regulations and compliance were being met. Wipfli stayed with the company through September 2024. They were phased out of the company at this time. We now have an established, trained, fully staffed accounting team. This includes the CFO, Senior Accountant, two Staff Accountants, and an Accounts Payable Accountant. Starting in late 2024, all accounting procedures were handled in-house by this team. Returning to accounting functions being handled by the direct staff will be much more efficient, timely, and accurate. We will continue to work on streamlining our accounting procedures and processes while following our high standard of internal controls. This is being proven as we have seen success with our 2024 Year End Audit with no other material weaknesses.