Finding 1163052 (2024-004)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-11-26

AI Summary

  • Core Issue: The Town failed to submit the June 30, 2024 audit to the Federal Audit Clearinghouse by the required deadline of October 31, 2024.
  • Impacted Requirements: Late submission prevents the Federal Government from receiving critical feedback on compliance and internal control issues.
  • Recommended Follow-Up: The Town should implement changes to ensure timely submissions and address staffing challenges to avoid future delays.

Finding Text

Criteria: A federal single audit must be submitted to the Federal Audit Clearinghouse (FAC) nine months from the Town’s June 30 fiscal year end. Condition: The June 30 audit for 2024 audit was not submitted to the FAC as of October 31, 2024. Effect: By submitting the FAC late, the Federal Government does not receive important, timely feedback documented in the independent auditor’s reports such as internal control deficiencies related to compliance requirements for federal single audits. Cause: The Town experienced significant staffing challenges during the audit period, including high turnover and prolonged vacancies in the Finance Officer position. These personnel disruptions hindered the Town’s ability to compile and review the necessary financial information in a timely manner, ultimately delaying the completion and submission of the audit to the Federal Audit Clearinghouse. Repeat Finding: This is a repeat finding from the immediate previous audit, 2024-007. Recommendation: The Town should make the necessary adjustments to meet the FAC deadlines. Views of responsible officials and planned corrective actions: The Town agrees with the finding and agrees to adhere to the correction action plan on page

Corrective Action Plan

Name of Contact Person: Demetrius Jones, Finance Officer  The Town has established a year-end closing timeline with defined responsibilities and deadlines to ensure timely completion of future audits.  Monthly and quarterly reviews of account balances and reconciliations have been implemented.  Additional support has been secured from external accountants to assist in audit preparation and documentation.  The Town has developed an internal audit readiness file for tracking required documents throughout the year.  Recruitment and retention strategies are being improved to ensure long-term stability in the Finance Officer position.  Proposed Completion Date: The Town will implement the above procedures immediately.

Categories

Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.23M