Finding 1227792 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-08-25

AI Summary

  • Core Issue: OMEGA submitted its Single Audit reporting package late, missing the March 31, 2024 deadline by over four months.
  • Impacted Requirements: This delay violates 2 CFR 200.512, which mandates timely submission of audit reports to the Federal Audit Clearinghouse.
  • Recommended Follow-Up: OMEGA should establish procedures to track reporting deadlines and ensure timely preparation of financial statements and audit responses.

Finding Text

2 CFR 200.512, Report Submission Finding Number: 2024-001 Assistance Listing Number and Title: N/A Federal Award Identification Number / Year: 2023 Federal Agency: N/A Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Prior Audit Finding Number: N/A Criteria: 2 CFR 200.512 required the auditee to submit the Single Audit reporting package and Data Collection Form to the Federal Audit Clearinghouse no later than the earlier of 30 calendar days after the receipt of the auditor’s reports or nine months after the end of the audit period. Condition: OMEGA’s reporting package for the fiscal year ended June 30, 2023, was required to be submitted by March 31, 2024. The reporting package was not submitted until August 29, 2024. The late submission resulted from delays by management in completing the financial reporting process and providing the information necessary for the audit to be completed. Consequently, the audit reports were issued after the regulatory filing deadline, preventing timely submission to the Federal Audit Clearinghouse. Effect: OMEGA did not comply with the Uniform Guidance reporting requirements. Untimely completion of the audit and submission of the reporting package may result in increased oversight by federal awarding agencies or pass-through entities and could adversely affect OMEGA's standing with respect to future federal funding. Cause: Management did not maintain adequate procedures to ensure the timely completion of the financial statements, preparation of supporting schedules, and resolution of audit requests necessary to complete the Single Audit within the required timeframe. Recommendation: OMEGA should implement procedures to monitor Single Audit reporting deadlines and ensure future reporting packages are submitted timely to the Federal Audit Clearinghouse. OMEGA should also ensure the financial statement preparation and responses to audit requests are prepared timely to allow for timely completion of the audit prior to the Single Audit reporting deadlines. Officials’ Response – See Corrective Action Plan.

Corrective Action Plan

OMEGA will engage an accounting consultant to assist with the preparation of the annual financial statements to ensure timely reporting.

Categories

Reporting Subrecipient Monitoring

Programs in Audit

ALN Program Name Expenditures
23.011 APPALACHIAN RESEARCH, TECHNICAL ASSISTANCE, AND DEMONSTRATION PROJECTS $657,688
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $323,280
23.009 APPALACHIAN LOCAL DEVELOPMENT DISTRICT ASSISTANCE $136,413
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $126,896
20.205 HIGHWAY PLANNING AND CONSTRUCTION $106,925
11.302 ECONOMIC DEVELOPMENT SUPPORT FOR PLANNING ORGANIZATIONS $78,551
23.002 APPALACHIAN AREA DEVELOPMENT $66,776