Finding 1179313 (2022-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2026-03-12
Audit: 391676
Organization: Excelth Inc. (LA)
Auditor: 264006939

AI Summary

  • Issue: The audit report for 2022 was submitted late, impacting timely decision-making.
  • Trend: Late submissions have been increasing, indicating a potential systemic issue in the reporting process.
  • Follow-up: Review and improve the audit timeline and submission protocols to ensure on-time delivery in the future.

Finding Text

2022-001-Late Submission of Audit Report.

Corrective Action Plan

The delay in submitting the audited financial statements was primarily driven by the lingering operational disruptions caused by the COVID-19 pandemic. These external factors led to significant challenges in recruiting and retaining qualified accounting personnel, resulting in a temporary capacity gap within the Finance Department that hindered our ability to meet the filing deadline. Corrective Action Plan: To ensure compliance and timely reporting, management has implemented the following measures: 1. Augumented Saffing & Expert Advisory: We have entered into a strategic contract with Robert Half to provide qualified accounting professionals, ensuring the necessary capacity to handle peak workloads and internal vacancies. Additionally, we have engaged Fisher Consultants as specialized advisors to provide technical oversight, specifically tasked with expediting the completion of all remaining audits. 2. Monthly Close Rigor: The additional resources are tasked with ensuring all bank statements and subsidiary ledgers( Receivables & Payables) are reconciled to the general ledger on a monthly basis. 3. Proactive Oversight: Contracted staff will assist in preparing adjusting entries and monthly financial packages for the governing board to ensure data integrity throughout the year, rather than waiting for year-end. 4. Audit Readiness: These professionals will be specifically assigned to support the year-end audit process, ensuring that all requested schedules and draft financial statements are delived to the auditors well in advance of the statutory deadline. 2022 Audit Completion Date: March 12,2026.

Categories

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Other Findings in this Audit

  • 1179312 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $7.00M
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $289,215