Finding 1174173 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-18
Audit: 387867
Organization: Appalcart (NC)

AI Summary

  • Core Issue: The auditee submitted the audit reporting package 317 days late, violating federal requirements.
  • Impacted Requirements: Noncompliance with 2 CFR 200.512 affects federal oversight and may lead to enforcement actions.
  • Recommended Follow-Up: Update procedures to confirm report acceptance by the Federal Audit Clearinghouse to prevent future delays.

Finding Text

Criteria: Per 2 CFR 200.512 (Reporting on Audit Results), the auditee must submit the single audit reporting package to the Federal Audit Clearinghouse (FAC) within 30 days after receipt of the auditor’s report, or nine months after the end of the auditee’s fiscal year, whichever is earlier. Condition: For the fiscal year ending June 30, 2024 the auditee's reporting package was submitted to the Federal Audit Clearinghouse on November 13, 2025, which is 317 days past the required due date. Effect: Untimely submission constitutes noncompliance with federal reporting requirements which can impair federal oversight and increase the risk of enforcement actions, such as heightened monitoring, restrictions on future funding, or other administrative remedies deemed appropriate by awarding agencies. Cause: Insufficient procedures to ensure submission was accepted and finalized. Recommendation: Procedures should be updated to include report acceptance confirmation by the Federal Audit Clearinghouse. Views of Responsible Officials: AppalCART agrees with this finding. Finance procedures will be updated to include recommended submission confirmation which will be implemented immediately.

Corrective Action Plan

Name of contact person: Craig Hughes, Executive Director Corrective Action: Finance procedures will be updated to include submission confirmation of the reporting package to the Federal Audit Clearinghouse. Proposed Completion Date: January 31, 2026.

Categories

Reporting Subrecipient Monitoring

Programs in Audit

ALN Program Name Expenditures
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $5,091
20.527 PUBLIC TRANSPORTATION EMERGENCY RELIEF PROGRAM $2,029