Finding 1161730 (2023-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-11-03

AI Summary

  • Core Issue: The College failed to submit the single audit reporting package on time, breaching federal filing requirements.
  • Impacted Requirements: Compliance with 2 CFR 200.512(a) mandates submission within 30 days of the auditor's report or 9 months post fiscal year-end.
  • Recommended Follow-Up: Management should establish better procedures and controls to ensure timely completion and submission of future audits.

Finding Text

2023-004: Late Submission of Audit Report to the Federal Audit Clearinghouse (Significant Deficiency - Reporting Compliance Area) Federal Program: All Federal Programs Criteria: The Uniform Guidance, specifically 2 CFR 200.512(a), establishes the filing requirements for the submission of single audits to the Federal audit clearing house and indicates that the single audit reporting package must be submitted 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first. Condition: The single audit reporting package for the College's year ended December 31, 2023, was due to the Federal audit clearinghouse by September 30, 2024. However, the College's data collection form for 2023 was not submitted by September 30, 2024. Cause: During the 2023 audit process, the College did not provide supporting documentation for audit requests in a timely manner, which caused significant delays in completing the audit process. Effect or Potential Effect: Not timely filing the single audit reporting package is indicative of timeliness issues with the audit process. Questioned Costs: None. Context: As a result of delays in the completion of the 2023 audit, the single audit reporting package for the year ended December 31, 2023, was not submitted timely. Identification as a Repeat Finding, if Applicable: Not a repeat finding.Recommendation: We recommend that management implement procedures and control processes to ensure that future audits are completed timely so that the single audit reporting package is submitted by the appropriate deadline of either 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first.

Corrective Action Plan

Views of Responsible Officials: Thank you for bringing these findings to our attention, as they clarify some issues we have faced in our internal controls. The following 3-step approach has been implemented to rectify these concerns. 1. Personnel Changes: In Q2 of 2024, the CEO began significant staffing changes within the accounting and finance department. First, the former internal CFO position was replaced by an external fractional CFO team following a thorough vetting process. The selected CFO team is led by a CPA and former auditor who understands internal control matters, processes, and procedures. As a part of a large national firm, the team has ample resources and has developed procedures for the monthly financial statement close to address the issues raised in this audit. Secondly, following the transition of the former Accounting Manager, we began recruiting for a Director of Finance position. This role will serve as the organization’s controller. We anticipate completing this recruitment effort and welcoming the new employee by Q3 2025. 2. Executive Oversight: Since Q2 2024, the COO and CEO have been more actively involved in the financial management of the organization. This has included effectively engaging department directors in the development and oversight of their respective budgets, reviewing financial reports monthly, and keeping the Board of Directors informed of fiscal matters on a regular basis. 3. Process Improvements: During the staffing changes mentioned above, it became clear that the organization lacked or had outdated protocols for many accounting functions. We are working to update/develop policies and procedures for the respective business processes. The updated financial manual will be available for staff to reference to ensure standard processes are followed in the future.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 1161727 2023-004
    Material Weakness Repeat
  • 1161728 2023-004
    Material Weakness Repeat
  • 1161729 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.251 Newborn Screening Translational Research Network $2.44M
93.110 National Coordinating Center: Heritable Disorders $983,954
93.172 National Institute of Health - National Human Genome Research Institute $693,467
93.110 Maternal and Child Health Bureau $318,575