Finding 1175687 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-02-27

AI Summary

  • Core Issue: The audit for the year ended December 31, 2024 was not completed and submitted on time, violating federal requirements.
  • Impacted Requirements: Under Uniform Guidance 2 CFR Section 210.507(c), audits must be submitted within nine months after the audit period ends.
  • Recommended Follow-Up: Implement a process to ensure timely preparation of the SEFA to meet audit deadlines.

Finding Text

Internal Control Impact: Material Weakness Repeat Finding: No Questioned Costs: None Internal Control Impact: Significant deficiency Criteria: Under Uniform Guidance 2 CFR Section 210.507(c), the audit shall be completed and submitted within the earlier of 30 days after receipt of the auditors’ reports, or nine (9) months after the end of the audit period, whichever is earlier. Condition: The Organization’s audit for the year ended December 31, 2024 was not able to be completed and submitted within nine (9) months after the end of the audit period. Cause: The start of the Organization’s audit was delayed due to delays in closing the books. Effect: Failure to complete and submit the audit could result in a failure to meet the requirements imposed by Federal grantor agencies and by the Uniform Guidance. Recommendation: Marshall Jones recommends that the Organization establish a process to ensure that the SEFA is prepared timely to allow for audit completion prior to the deadline. Views of Responsible Officials: Management of the Organization concurs with the finding. Please refer to the Corrective Action Plan.

Corrective Action Plan

Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to staff turnover in key financial management positions, resulting in delays in audit coordination and reporting and the timing of commencing the audit. Statement of Concurrence: The organization concurs with this finding. Corrective Action: The organization has resolved the underlying cause of this finding by onboarding a Vice President of Finance, who is a Certified Public Accountant (CPA). The VP of Finance is responsible for oversight of financial reporting, compliance with Uniform Guidance (2 CFR Part 200), and coordination of the Single Audit process. Corrective actions implemented include: • Assignment of clear responsibility and accountability for Single Audit compliance to the VP of Finance. • Development of a formal audit timeline and internal milestones to ensure timely audit initiation, completion, and submission. • Strengthening of internal controls over financial reporting and audit documentation. • Ongoing communication and coordination with external auditors to ensure compliance with federal audit requirements. These actions ensure that future Single Audits will be completed and submitted timely in accordance with Uniform Guidance.

Categories

Material Weakness Reporting Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $3.25M