Finding 1208172 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-04-17
Audit: 399023
Organization: College for Social Innovation (MA)

AI Summary

  • Core Issue: The Organization missed the deadline for submitting the Single Audit report to the Federal Audit Clearinghouse.
  • Impacted Requirements: Timely submission is required by Title 2 U.S. Code of Federal Regulations Part 200, which mandates proper internal control procedures.
  • Recommended Follow-Up: Review and enhance policies for regular account balance checks and implement the new “Financial Command Center” tool to improve audit readiness.

Finding Text

Reporting Criteria: Formally documented internal control procedures ensure schedules are ready for an audit on a timely basis. This ensures timely submission of the Single Audit report as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Condition: The Organization failed to submit the Single Audit report to the Federal Audit Clearinghouse by the required deadline. Questioned Costs: None noted. Context: The Organization was required to submit the June 30, 2024 Single Audit report to the Federal Audit Clearinghouse within nine months of the Organization's year-end. The Organization did not submit this report in the required period. Effect: The lack of formal process to provide timely and accurate audit support could result in the late submission of the Single Audit report. Cause: The Organization did not provide all audit documentation prior to the Single Audit submission deadline. Recommendation: The Organization should review its policies and procedures to ensure that all account balances and transactions are periodically reviewed for proper presentation in accordance with accounting principles generally accepted in the United States. This would allow for timely completion of the audit. View of Responsible Officials and Planned Corrective Actions: The Organization's corrective action plan to ensure timely preparedness for auditing is twofold. First, the Organization is developing a new “Financial Command Center” tool to allow greater speed, accuracy, and regularity in tracking account balances and transactions. This new tool better consolidates the Organization's tracking processes and allows for regular reconciliations across tracking platforms including Expensify, QuickBooks, Excel, and BambooHR. Second, the Organization is currently seeking the support services of a Certified Public Accountant. As of February 2, 2026, the Organization has identified a list of potential candidates, is developing a formal request for proposals, and expects to enter a contracted agreement in early March of 2026. This new supporting role will assist in ensuring that the Organization's accounting practices fully align with accounting principles generally accepted in the United States.

Corrective Action Plan

Person Responsible for Corrective Action: Edward S. Churchill Jr., Chief Operating Officer Corrective Action Plan: College for Social Innovation’s corrective action plan to ensure timely preparedness for auditing is twofold. First, we are developing a new “Financial Command Center” tool to allow greater speed, accuracy, and regularity in tracking account balances and transactions. This new tool better consolidates our tracking processes and allows for regular reconciliations across tracking platforms including Expensify, QuickBooks, Excel, and BambooHR. Second, College for Social Innovation is currently seeking the support services of a Certified Public Accountant. As of February 2, 2026, we have identified a list of potential candidates, are developing a formal request for proposals, and expect to enter a contracted agreement in early March of 2026. This new supporting role will assist in ensuring that our accounting practices fully align with accounting principles generally accepted in the United States. Anticipated Completion Date: 3/30/2026

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1208171 2024-001
    Material Weakness Repeat
  • 1208173 2024-003
    Material Weakness Repeat
  • 1208174 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
94.006 AMERICORPS STATE AND NATIONAL 94.006 $892,935