Finding 1224563 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-07-23
Audit: 407826
Organization: Progressive Rehab of PA INC (PA)
Auditor: CBIZ CPAS PC

AI Summary

  • Issue: Audit and data collection form submissions are late, violating 2 CFR § 200.512.
  • Impact: This noncompliance risks federal funding and is a repeat finding from last year.
  • Recommendation: Improve staffing and processes to ensure timely audits and compliance with filing deadlines.

Finding Text

Federal Agency: U.S. Department of Agriculture Federal Program: 10.766, Rural Development, Community Facilities Direct Loan Criteria or Specific Requirement – 2 CFR § 200.512, Report Submission, requires completion of an audit and submission of the data collection form and reporting package within the earlier of thirty calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. Condition - The audit and data collection form are being submitted after the required due date. Cause - The Corporation had not maintained appropriate levels of staff to ensure compliance with regulatory filing requirements with the prior year audit which delayed the start and completion of this year’s audit on a timely basis. Effect - Noncompliance with the requirements of 2 CFR § 200.512. There is a potential for suspension or cessation of federal funding under the federal award. Repeat Finding - This is a repeat finding from the prior year. See prior year finding 2023-002. Recommendation - The Corporation should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and audited within nine months after year-end. View of Responsible Officials and Planned Corrective Actions – See corrective action plan.

Corrective Action Plan

Yes, we agree with the findings and the Corporation has taken steps to ensure the financial records are maintained on a current basis and reconciled timely. We now have an accounting manager that is overseeing the financial records and ensuring accuracy and timeliness. Additionally, we have adopted new software that allows for accuracy and timeliness of month end close. This will allow for year-end audits to be performed within 180 days and subsequent submission within 9 months to the Federally Audit Clearing House.

Categories

Procurement, Suspension & Debarment Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1224564 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $7.41M