Finding 1172540 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-05
Audit: 385818
Organization: Connected Lane County (OR)
Auditor: JONES & ROTH PC

AI Summary

  • Core Issue: The audit for the year ended June 30, 2024, was not completed on time due to issues with accounting records and delays in information submission.
  • Impacted Requirements: This delay resulted in noncompliance with the requirement to submit the audit within nine months, as outlined in 2 CFR 200.512.
  • Recommended Follow-Up: Management should collaborate with the Finance Manager to improve internal controls and streamline accounting processes, and review document retention policies for better organization.

Finding Text

Finding 2025-001 Type of Finding: Significant deficiency in internal controls over compliance and immaterial noncompliance Criteria: In accordance with the Uniform Guidance (2 CFR 200.512), it is the responsibility of Connected Lane County’s management to ensure there are properly designed and implemented internal controls in order to timely complete the Organization’s annual audit and submit it to the federal audit clearinghouse. Condition and Context: The audit for the year ended June 30, 2024 was not able to be completed within nine months of the fiscal year end as required due to required corrections to the accounting records and delays in providing information required to complete the audit. The audit was submitted more than nine months after the end of the audit period. Cause of Condition: The audit for the year ended June 30, 2024 was not able to be completed within nine months of the fiscal year end as required due to required corrections to the accounting records and delays in providing information required to complete the audit. Effect of Condition: The effect of the condition is that the Organization did not comply with the provisions in 2 CFR 200.212. This is considered immaterial non-compliance. Questioned Costs: None. Repeat Finding: Yes, see Finding 2024-002. Recommendation: We recommend management and the Board work closely with the Finance Manager to remedy the internal control over financial reporting deficiency and also to find efficiencies in the accounting systems to allow for timely close of the Organization’s financial records in order to allow for the audit to be completed timely. Additionally, we recommend the Organization review its document retention and storage policies to ensure documentation is well organized and easy to locate when requested for the audit.

Corrective Action Plan

Finding 2025-001: Significant deficiency in internal controls over compliance and immaterial noncompliance Corrective Action Planned: Connected Lane County updated internal control processes, approved by the board on 05.21.25, which significantly reduced year end processing delays and the number of corrections needed to complete the audit. The audit for fiscal year 2025 ending on June 30, 2025 was completed within seven months of the end of the fiscal year. Person(s) Responsible: Jesse Nelson, Executive Director and Mary Bell, Finance Manager Anticipated Completion Date: 09.01.2025

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Programs in Audit

ALN Program Name Expenditures
17.259 WIOA YOUTH ACTIVITIES $624,193
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $304,053
84.421F Disability Innovation Fund $224,945