Finding 1220130 (2025-004)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-06-29

Audit: 405305

Organization: Civil Air Patrol (AL)

Auditor: WARREN AVERETT LLC

AI Summary

Core Issue: The final financial report (SF-425) for the Civil Air Patrol Program was not submitted on time.
Impacted Requirements: Timely filing of the SF-425 is mandated within 120 days post-performance period, as per the Cooperative Agreement.
Recommended Follow-up: Enhance grant reporting policies to ensure timely submissions, including a documented review by someone other than the preparer.

Finding Text

Information on the federal program: United States Airforce, Assistance listing # 12.840 Civil Air Patrol Program Criteria: The Cooperative Agreement (award number FA4819-23-2-0001), Subdivision B (General Terms and Conditions for Administrative Requirements) Financial, Programmatic, and Property Reporting (REP), REP Article II: Financial Reporting, section C, states, "You must submit the final financial report under this award no later than 120 calendar days after the end date of the period of performance." Condition: The SF-425 was not submitted within the required time frame. Cause: The controls related to timely submission of Form SF-425 did not operate effectively. Effect: Reporting requirements for Form SF-425 were not met with respect to timely filing. Repeat Finding: No Questioned Costs: None reported. Recommendation: We recommend CAP strengthen its policies and procedures surrounding grant reporting to include a file and documented review of the timely filed copies of all required reports. The documented review should be performed and approved by someone other than the preparer. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan included at the end of the report.

Corrective Action Plan

We concur with the finding and are implementing procedures to address all issues. The untimely submission of the SF-425 resulted from deficiencies in internal controls during the fiscal year end closeout process. Specifically, responsibilities for tracking and submitting required federal reports were not sufficiently defined, and monitoring procedures did not ensure that reporting deadlines were met. CAP is implementing corrective actions to strengthen its reporting processes. These actions include establishing a formal reporting calendar that identifies all required federal reporting deadlines, clearly assigning responsibility and backup responsibility for report preparation and submission, and implementing a documented supervisory review process to verify that reports are submitted timely. These corrective measures are intended to ensure compliance with reporting requirements and improve accountability. CAP expects these actions to be fully implemented by 30 September 2026.

Other Findings in this Audit

1220129 2025-003

Material Weakness Repeat
1220131 2025-005

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
12.840	CIVIL AIR PATROL PROGRAM	$80.38M