Finding 1228594 (2024-001)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2026-09-01

AI Summary

  • Answer: Audits must be submitted within 30 days of receiving the auditor's report or within nine months after the audit period ends, whichever comes first.
  • Trend: Compliance with submission timelines is crucial to avoid penalties and ensure funding eligibility.
  • List: Review audit schedules, track report receipt dates, and set reminders for timely submissions.

Finding Text

Under 45 CFR Part 75.512, the Uniform Guidance requires that audits are submitted by the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period

Corrective Action Plan

Management concurs with the finding that the audit submission for the year ended October 31, 2024 was not filed with the Federal Audit Clearinghouse within the required timeframe under 45 CFR §75.512. The late submission was directly related to the issues identified in Finding 2024-001, including staff capacity constraints tied to limited administrative funding, delays in completing key reconciliations, and challenges responding to documentation requests with the speed required to meet Uniform Guidance deadlines. 29 To correct the issue and prevent recurrence, the Agency has undertaken the following actions: 1. Audit Preparation Plan & Timeline o A structured audit preparation schedule will be adopted, requiring all schedules, reconciliations, trial balances, and in-kind documentation to be fully prepared before audit fieldwork begins. 2. Documentation Request Tracking System o A centralized tracking tool will be implemented to ensure timely and complete responses to auditor requests, with weekly monitoring during peak periods. 3. Strengthening Financial Staffing Levels o As part of the Agency’s long-term corrective strategy, organizational changes to the indirect cost rate and cost allocation structure are expected to increase revenue, which will allow the Agency to expand financial staffing capacity and reduce delays in audit preparation and monthly reporting. 4. Management Oversight o Agency staff will conduct audit readiness reviews beginning 90 days prior to fiscal year-end to monitor progress and ensure compliance with all reporting deadlines. Anticipated Completion Date: Corrective actions will be fully implemented by September 30, 2026. Responsible Party: Chief Financial Officer

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1228595 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.569 COMMUNITY SERVICES BLOCK GRANT $534,234
10.558 CHILD AND ADULT CARE FOOD PROGRAM $222,889
93.600 HEAD START $98,479