Finding 1165873 (2024-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-12-22

AI Summary

  • Issue: The Organization missed the deadline for submitting the Single Audit Report for FY 2024, violating federal requirements.
  • Impact: This delay could result in loss of federal funding and possible penalties due to poor internal controls over the audit process.
  • Next Steps: Implement a monitoring system for audit deadlines, assign clear roles, and maintain regular communication with auditors to ensure timely submissions.

Finding Text

Untimely Single Audit Filing Condition and criteria: The Organization did not submit their Single Audit Report for the fiscal year ended December 31, 2024 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Organization should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Organization’s Response: Management will work with the auditors to have the draft audit reports completed within one month of the field work and submitted to the Board of Directors for approval. At the next Board of Directors meeting, which will be no later than the report due, the drafts reports will be reviewed.

Corrective Action Plan

Untimely Single Audit Filing. Auditor’s Recommendations: The Organization should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Organization’s Response: Management will work with the auditors to have the draft audit reports completed within one month of the field work and submitted to the Board of Directors for approval. At the next Board of Directors meeting, which will be no later than the report due, the drafts reports will be reviewed.

Categories

Reporting Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1165868 2024-002
    Material Weakness Repeat
  • 1165869 2024-002
    Material Weakness Repeat
  • 1165870 2024-002
    Material Weakness Repeat
  • 1165871 2024-003
    Material Weakness Repeat
  • 1165872 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $4.74M
93.575 COVID-19 - ARPA Child Care and Development Block Grant $239,008
10.558 CHILD AND ADULT CARE FOOD PROGRAM $130,958