Finding 1177916 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-03-11
Audit: 391262
Organization: Special Olympics Michigan, Inc. (MI)

AI Summary

  • Core Issue: The Organization missed the deadline for submitting the audit reporting package, resulting in noncompliance with federal requirements.
  • Impacted Requirements: Late submission disqualifies the Organization from being a "low-risk auditee," increasing future audit costs and testing volume.
  • Recommended Follow-Up: Review and improve internal controls to ensure timely completion of accounting processes and audits.

Finding Text

Program: Direct Appropriation - Special Olympics Education Program Criteria: In accordance with 2 CFR § 200.512(a), the audit must be completed and the reporting package, which includes the Data Collection Form (SF-SAC), must be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The Organization did not submit the reporting package and the Data Collection Form to the Federal Audit Clearinghouse for the fiscal year ended December 31, 2024, until after the regulatory deadline of September 30, 2025. Questioned costs: None Context: The finding is a result of observation and inquiry with Organization management. Effect: The Organization is in noncompliance with federal reporting requirements. This late filing automatically disqualifies the Organization from being considered a "low-risk auditee" for the next two audit years under 2 CFR § 200.520, which will likely increase future audit costs and the volume of testing required. Cause: The delay was a direct result of the audit being unable to be completed timely due to delays in audit documentation being provided. Recommendation: The Organization should review internal controls and implement necessary procedures to ensure that accounting processes are completed timely so the audit can be completed within the parameters of the due date. Views of the Responsible Officials and Planned Corrective Action: The Organization has hired additional accounting department staff to get the accounting department up-to-date. A third party consulting firm was contracted to provide an assessment of internal accounting and management policies, procedures and responsibility to assist in identifying improvements and efficiencies.

Corrective Action Plan

2024-003 Finding - In accordance with 2 CFR § 200.512(a), the audit must be completed and the reporting package, which includes the Data Collection Form (SF-SAC), must be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Recommendation - The Organization should review internal controls and implement necessary procedures to ensure that accounting processes are completed timely so the audit can be completed within the parameters of the due date. Action to be taken – Additional staffing has been added and long with ensuring that bank reconciliations are completed by the 10th day after the month ends in order to ensure audit field work is completed in a timely manner. Responsible person – Tony Postma, Interim Chief Financial Officer

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1177915 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.380 SPECIAL EDUCATION - SPECIAL OLYMPICS EDUCATION PROGRAMS $457,991
93.184 DISABILITIES PREVENTION $61,871
94.006 AMERICORPS STATE AND NATIONAL 94.006 $49,775