Finding 1220033 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-29
Audit: 405221
Auditor: MJCO LLC

AI Summary

  • Core Issue: The audit for the year ended June 30, 2025 was not completed on time, violating federal guidelines.
  • Impacted Requirements: The delay affects compliance with Uniform Guidance and could jeopardize federal funding.
  • Recommended Follow-Up: Implement a process to ensure timely preparation of the SEFA for future audits.

Finding Text

Internal Control Impact: Significant deficiency Criteria: Under Uniform Guidance 2 CFR Section 200.507(c), the audit shall be completed and submitted within the earlier of 30 days after receipt of the auditors’ reports, or nine (9) months after the end of the audit period, whichever is earlier. Condition: The Organization’s audit for the year ended June 30, 2025 was not able to be completed and submitted within nine (9) months after the end of the audit period. Cause: The completion of the Organization’s audit was not in compliance with its audit deadline due to delays in providing audit documentation requests. Effect: Failure to complete and submit the audit could result in a failure to meet the requirements imposed by federal grantor agencies and by the Uniform Guidance. Recommendation: Marshall Jones recommends that the Organization establish a process to ensure that the SEFA is prepared timely to allow for audit completion prior to the deadline. Views of Responsible Officials: Management of the Organization concurs with the finding. Please refer to the Corrective Action Plan.

Corrective Action Plan

Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to special projects (mortgage sales) that dramatically limited staff bandwidth in key financial management positions, resulting in delays in audit coordination and reporting and the timing of commencing the audit.Statement of Concurrence: The organization concurs with this finding.Corrective Action: The organization has resolved the underlying cause of this finding by streamlining the data collection process related to mortgage sales transactions. Furthermore, the organization is in the process of reorganizing the financial department to streamline workflows. The Staff Accountant in partnership with the Director of Finance & Administration are responsible for oversight of financial reporting, compliance with Uniform Guidance (2 CFR Part 200), and coordination of the Single Audit process.Corrective actions implemented include:• Departmental reorganization is underway to streamline workflows and provide clear ownership of departmental responsibilities (including single audit compliance) between Staff Accountant and Director of Finance and Administration.• Development of a formal audit timeline and internal milestones to ensure timely audit initiation, completion, and submission.• Strengthening of internal controls over financial reporting and audit documentation.• Ongoing communication and coordination with external auditors to ensure compliance with federal audit requirements. These actions ensure that future Single Audits will be completed and submitted timely in accordance with Uniform Guidance.Status of Finding: This finding resulted from unexpected special projects that limited financial staff bandwidth as well as fragmented workflows, which have both been addressed. Corrective action is in process.Projected Completion Date: Corrective action completed as of 6/5/2026, with ongoing monitoring incorporated into standard financial management procedures.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.16M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $136,667