Finding 1222991 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-07-06
Audit: 406509
Auditor: RSM US LLP

AI Summary

  • Core Issue: The Cooperative failed to submit the 2025 Single Audit reporting package on time, violating federal requirements.
  • Impacted Requirements: This affects compliance with Uniform Guidance 2 CFR 200.512, which mandates timely audit report submissions.
  • Recommended Follow-Up: Implement enhanced communication and monitoring with auditors, including regular status meetings and documentation of deadlines to prevent future delays.

Finding Text

Finding 2025-001: Untimely Submission of the 2025 Single Audit Reporting Package Significant Deficiency and noncompliance Repeat Finding: Yes (2024-001) Federal Programs: Applicable to all assistance listing numbers (ALN’s) and federal agencies (and pass-through entities) included on the schedule of expenditures of federal awards for the year ended June 30, 2025. Criteria: Uniform Guidance 2 CFR 200.512, Report Submission, requires that each organization’s audit must be completed and the data collection form and reporting package submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The Single Audit reporting package for the Cooperative’s fiscal year ended June 30, 2025 should have been submitted to the Federal Audit Clearinghouse by March 31, 2026. Cause: The audit team experienced delays and did not have sufficient resources to complete the audit timely in addition to various delays in processing the related audit requests. Effect: The Single Audit reporting package was not received timely by the Federal Audit Clearinghouse. Questioned Costs: None. Recommendation: To ensure compliance with Federal regulations, we recommend the Cooperative develop additional steps so all elements of the Single Audit reporting package are submitted on a timely basis. View of Responsible Officials of the Auditee: The Cooperative acknowledges the finding regarding the untimely submission of the Single Audit reporting package. The delay was attributable to circumstances outside of the Cooperative’s control, specifically delays in the completion of the audit by the independent auditors. Nevertheless, the Cooperative recognizes its responsibility for ensuring compliance with federal reporting requirements. To reduce the risk of future delays, the Cooperative will enhance communication and monitoring procedures with its independent auditors throughout the audit process. Management will establish interim status meetings, monitor key audit milestones, and request periodic updates on the auditors’ progress to identify and address potential delays as early as possible. In addition, the Cooperative will document these monitoring efforts and maintain a timeline of critical reporting deadlines. Management believes these measures will strengthen oversight of the audit process and help ensure the timely submission of all required elements of the Single Audit reporting package.

Corrective Action Plan

Identifying Number: 2025-001 Finding: Untimely Submission of the 2025 Single Audit Reporting Package Corrective Action Plan: The Cooperative acknowledges the finding regarding the untimely submission of the Single Audit reporting package. The delay was attributable to circumstances outside of the Cooperative's control, specifically delays in the completion of the audit by the independent auditors. Nevertheless, the Cooperative recognizes its responsibility for ensuring compliance with federal reporting requirements. To reduce the risk of future delays, the Cooperative will enhance communication and monitoring procedures with its independent auditors throughout the audit process. Management will establish interim status meetings, monitor key audit milestones, and request periodic updates on the auditors' progress to identify and address potential delays as early as possible. In addition, the Cooperative will document these monitoring efforts and maintain a timeline of critical reporting deadlines. Management believes these measures will strengthen oversight of the audit process and help ensure the timely submission of all required elements of the Single Audit reporting package. Completion Date: December 31, 2026

Categories

Reporting

Other Findings in this Audit

  • 1222984 2025-001
    Material Weakness Repeat
  • 1222985 2025-001
    Material Weakness Repeat
  • 1222986 2025-001
    Material Weakness Repeat
  • 1222987 2025-001
    Material Weakness Repeat
  • 1222988 2025-001
    Material Weakness Repeat
  • 1222989 2025-001
    Material Weakness Repeat
  • 1222990 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $254,863
93.778 GRANTS TO STATES FOR MEDICAID $225,369
10.553 SCHOOL BREAKFAST PROGRAM $40,082
10.555 NATIONAL SCHOOL LUNCH PROGRAM $17,766