Finding 1215998 (2024-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2026-05-29

Audit: 402547

Organization: The Enola Group, Inc. (NC)

Auditor: DUNCAN ASHE P A

AI Summary

Core Issue: There were insufficient controls to ensure that grant reports matched the accounting records and that funds requested did not exceed available amounts.
Impacted Requirements: Compliance with Title 2 U.S. CFR Part 200.303, which mandates effective internal controls for managing Federal awards.
Recommended Follow-Up: Implement stronger review processes to ensure timely and accurate grant report submissions and adherence to funding limits.

Finding Text

Criteria: Grantees should have controls in place to ensure that grant reports are timely submitted to the grantor and are being properly reviewed and approved prior to submission. The Organization should file the SF-425 within the required time period, and these reports should reconcile to the underlying accounting records. Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 200.303 requires the non-Federal entity to “(a) establish, document and maintain effective internal controls over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition: Adequate controls were not in place to ensure reports being submitted to the grantor agreed to the underlying accounting activity and cumulative monetary funds requested did not exceed the amount available for the grant period.

Corrective Action Plan

NAME OF CONTACT: Terri Brown, Director of Finance CORRECTIVE ACTION: Management acknowledges the finding; however, it is important to clarify that the circumstances leading to the deficiency were significantly impacted by delated and unresponsive actions from the federal agency. Specifically, the Organization submitted required reports and sought timely guidance and approvals from the federal agency, but responses were not received within the federal deadlines. These delays were outside of the Organization’s control and directly affected the timely reconciliation and finalization of reported amounts. Notably, the federal government has acknowledged delayed reports and there were no findings in their FY24 audit. Management will continue to improve internal controls and documentation practices while also documenting all federal communications and follow-up efforts to document the impact of future federal delays. PROPOSED COMPLETION DATE: Implemented and Ongoing

Other Findings in this Audit

1215999 2024-003

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.600	HEAD START	$3.21M
10.558	CHILD AND ADULT CARE FOOD PROGRAM	$175,460