Finding 1228473 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-31
Audit: 410131
Organization: Town of Paradise (CA)

AI Summary

  • Core Issue: The Town failed to submit its single audit reporting package and data collection form on time, repeating a previous finding.
  • Impacted Requirements: This noncompliance violates 2 CFR 200.512, which mandates timely submission within nine months after the audit period.
  • Recommended Follow-Up: Strengthen the year-end close process to ensure timely preparation of financial statements and compliance with submission deadlines.

Finding Text

Finding 2025-003 – Material Weakness – Single Audit Reporting Package Not Submitted in a Timely Manner (Repeat Finding of 2024-003) Federal program: All federal programs Criteria: Pursuant to 2 CFR 200.512 of the Uniform Guidance requires the organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Town did not submit its single audit reporting package or data collection form within the required timeline. Cause: The Town did not prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner. Effect or Potential Effect: The late submission of the audited financial statements and data collection form resulted in the Town being noncompliant with the provisions of Section 200.512 of the Uniform Guidance. Recommendations: We recommend the Town strengthens the year-end close process to provide ample time to finalize the general ledger and trial balance to meet the federal audit clearinghouse nine-month submission deadline. Views of Responsible Officials and Planned Corrective Action: The Town's management concurs with the finding and will implement the recommendation above.

Corrective Action Plan

Condition: The Town did not submit its single audit reporting package or data collection form within the required timeline. Corrective Action Plan Corrective Action Planned: The Town will establish internal deadlines to submit the report at least 30 days before the federal due date. The responsibility to track audit milestones and communicate progress to management weekly will be assigned to the Grant Accountant, and the Town will schedule earlier engagement with the external auditor and ensure all required documentation is accurately prepared. The Town’s delay in submitting the Single Audit was due in part by the timing of the prior-year audit, which was not received until late and compressed the timeline for beginning and completing the subsequent audit. This occurred during a period of significant turnover within the Finance Department, including the loss of institutional knowledge related to grant reporting, audit preparation, and year-end closing procedures. The department has since restructured and expanded staffing, strengthened training, and developed additional procedures, workbooks, and guides to improve continuity and reduce reliance on individual staff knowledge. The Town has also improved its grant tracking and audit preparation processes, including standardized project account structures, enhanced reconciliation workbooks, and earlier preparation of the SEFA and supporting documentation. Finance is in the process of FY 2025-26 closing process earlier so that reconciliations, year-end adjustments, grant documentation, and audit schedules can be completed well in advance of fieldwork and prevent prior-year audit delays from continuing into future audit cycles. Name(s) of Contact Person(s) Responsible for Corrective Action: Aimee Beleu, Finance Director Anticipated Completion Date: The corrective action will be implemented to take effect for the audit of the FY 2025-26 financial statements.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 1228468 2025-003
    Material Weakness Repeat
  • 1228469 2025-003
    Material Weakness Repeat
  • 1228470 2025-003
    Material Weakness Repeat
  • 1228471 2025-003
    Material Weakness Repeat
  • 1228472 2025-003
    Material Weakness Repeat
  • 1228474 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $21.61M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $13.09M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $4.51M
97.039 HAZARD MITIGATION GRANT $2.22M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $673,824
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $128,766