Finding 1216016 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2026-05-29

AI Summary

  • Issue: The SF-SAC Single Audit Data Collection Form was not submitted on time by the Alliance.
  • Requirements Impacted: This violates Uniform Guidance 2 CFR 200, which mandates submission within 30 days of receiving the auditor's report or 9 months post-audit period.
  • Recommended Follow-Up: Establish internal controls to ensure timely financial statement finalization and submission to auditors.

Finding Text

Condition: The SF-SAC Single Audit Data Collection Form for the year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse by the required deadline by the Alliance. Criteria: Per Uniform Guidance 2 CFR 200, the single audit reporting package, and the data collection form (SF- SAC) must be submitted to the Federal Audit Clearinghouse within 30 calendar days after receipt of the auditor's report(s), or 9 months after the end of the audit period, whichever comes first. Cause: There was a lack of established internal control and procedures over the reporting process to ensure timely and accurate reporting. Effect: The Alliance was not in compliance with federal regulations and guidelines. Auditor's Recommendation: The Alliance should finalize financial statements and send them to auditors for audit within a reasonable amount of time after year-end.

Corrective Action Plan

Management concurs with this finding and acknowledges that this is a repeat finding from the prior year (2022-001). The Alliance takes this matter seriously and recognizes that the prior corrective action plan was insufficient in scope and specificity to prevent recurrence. To fully remediate this deficiency and ensure timely compliance with the reporting requirements of 2 CFR 200.512, the Alliance has implemented or will implement the following corrective actions 1. Concurrent Single Audits for FY 2023 - 2024 and FY 2024 - 2025. The Alliance will conduct concurrent audits on the currently late years to bring filing status to the current year. 2 Formal Fiscal Policy Adopted. The Alliance will adopt a formal fiscal policy governing the Single Audit process, which establishes a detailed project timeline with clearly defined milestones, responsible parties, and internal deadlines for each phase of the audit cycle — including year-end close, preparation of financial statements, auditor fieldwork, draft review, and submission of the SF-SAC Data Collection Form to the Federal Audit Clearinghouse (FAC). 3. Reverse-Engineered Timeline. The project timeline is structured to work backward from the 9-month federal deadline (March 31 for a June 30 fiscal year-end), building in a minimum 30-day buffer to ensure all deliverables — including management review of draft financial statements, resolution of auditor inquiries, and final submission — are completed well in advance of the statutory due date.4 Designated Responsible Party. The Administrative Services Officer, with regular reviews by the Executive Director, has been designated as the responsible party for monitoring progress against the timeline and escalating delays to the Executive Director and Board of Directors if any milestone is at risk of being missed.5 . Quarterly Progress Reporting. Beginning in the first quarter following fiscal year-end, the Administrative Services Officer will provide quarterly progress updates to the Executive Director on the status of the Single Audit, including any identified risks to the timeline. 6.Auditor Engagement Timeline. The Alliance will execute its audit engagement letter no later than 60 days after fiscal year-end and will provide all requested schedules and supporting documentation to the auditors within 90 days of fiscal year-end to ensure adequate time for fieldwork and report issuance. 7. Internal Controls Over Reporting. The Alliance will implement a closing checklist and internal review process to ensure that all reconciliations, adjusting entries, and supporting schedules are completed and reviewed prior to the commencement of auditor fieldwork. Estimated Completion Date: Fully implemented for the fiscal year ending June 30, 2024 audit cycle.Responsible Party: Taylor Swain, Administrative Services Officer

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1216005 2023-001
    Material Weakness Repeat
  • 1216006 2023-001
    Material Weakness Repeat
  • 1216007 2023-001
    Material Weakness Repeat
  • 1216008 2023-001
    Material Weakness Repeat
  • 1216009 2023-001
    Material Weakness Repeat
  • 1216010 2023-001
    Material Weakness Repeat
  • 1216011 2023-001
    Material Weakness Repeat
  • 1216012 2023-001
    Material Weakness Repeat
  • 1216013 2023-001
    Material Weakness Repeat
  • 1216014 2023-001
    Material Weakness Repeat
  • 1216015 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.259 WIOA - Youth Activities $864,990
17.258 WIOA - Adult Programs $451,086
17.278 WIOA - Dislocated Worker Formula Grant $354,836
17.278 WIOA - Rapid Response $294,974
17.277 WIOA - National Emergency Grant COVID-19 Employment Recovery $88,670
17.278 WIOA - Rapid Response Layoff Aversion $71,594
17.258 WIOA - Regional Plan Implementation Services 4.0 $26,907
17.258 WIOA - Workforce Accelerator Grant 9.0 $22,473
17.258 WIOA - Workforce Accelerator Grant 10.0 $7,326
17.277 WIOA - National Emergency Grant 2023 Severe Winter Storms $1,627
17.277 WIOA - National Emergency Grant 2019 Severe Winter Storms $603