Finding 1214734 (2023-005)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2026-05-15

AI Summary

  • Core Issue: The Single Audit report was not submitted on time, exceeding the 9-month deadline after the audit period.
  • Impacted Requirements: This delay violates the Uniform Guidance, risking federal funding restrictions and potential legal actions.
  • Recommended Follow-up: The Organization should enhance its year-end close process and set internal deadlines to ensure timely completion of the audit report.

Finding Text

Criteria: In accordance with the Uniform Guidance, the Single Audit report must be submitted to the designated Federal Audit Clearinghouse (FAC) within 30 days of receipt or 9 months after the end of the audit period, whichever is earlier Condition: The Single Audit report was not completed within 9 months after the end of the audit period. Cause: Personnel turnover within the Organization in addition to a delay in the prior year's audit being completed. Effect: Failing to file a Single Audit report on time can result in several consequences, including federal funding restrictions, penalties, and potential legal actions. These consequences can impact an Organization's ability to receive and utilize federal funds. Repeat Finding: Yes - The Single Audit report for the year ended September 30, 2022 was not completed within 9 months after the end of the audit period. Recommendation: The Organization should close out the year end on a timely basis so that there is adequate time to complete the Single Audit and corresponding report within the required timeframe. Response: The Organization has contracted with a public accounting firm to implement measures to strengthen its year-end close process, improve coordination with the external auditors and establish internal deadlines that ensure all reporting components are completed well in advance of the federal due date.

Corrective Action Plan

Corrective action is in process. In March 2026, the Organization contracted with a public accounting firm to function as the CFO and provide other accounting and finance support. These individuals are working to reestablish timely internal and external reporting. It is expected that 2026 year end reporting will be timely. Management agrees with the finding. The Single Audit report was not submitted to the Federal Audit Clearinghouse within the required nine-month timeframe due to delays in completing year-end financial reporting and audit fieldwork. We recognize the importance of timely submission to ensure compliance with Uniform Guidance requirements. The Organization has contracted with a public accounting firm to implement measures to strengthen its year-end close process, improve coordination with the external auditors, and establish internal deadlines that ensure all reporting components are completed well in advance of the federal due date.

Categories

Reporting

Other Findings in this Audit

  • 1214727 2023-005
    Material Weakness Repeat
  • 1214728 2023-005
    Material Weakness Repeat
  • 1214729 2023-005
    Material Weakness Repeat
  • 1214730 2023-005
    Material Weakness Repeat
  • 1214731 2023-005
    Material Weakness Repeat
  • 1214732 2023-005
    Material Weakness Repeat
  • 1214733 2023-005
    Material Weakness Repeat
  • 1214735 2023-006
    Material Weakness Repeat
  • 1214736 2023-006
    Material Weakness Repeat
  • 1214737 2023-006
    Material Weakness Repeat
  • 1214738 2023-006
    Material Weakness Repeat
  • 1214739 2023-006
    Material Weakness Repeat
  • 1214740 2023-007
    Material Weakness Repeat
  • 1214741 2023-007
    Material Weakness Repeat
  • 1214742 2023-007
    Material Weakness Repeat
  • 1214743 2023-007
    Material Weakness Repeat
  • 1214744 2023-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM $2.48M
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $785,645
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $310,252
14.267 CONTINUUM OF CARE PROGRAM $189,138
93.498 PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION $87,738
93.788 OPIOID STR $37,956
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $20,115