Finding 1238691 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-30

AI Summary

  • Core Issue: TCA missed the deadline for submitting audited financial statements to the Louisiana Legislative Auditor, violating La. R.S. 24:513.
  • Impacted Requirements: Louisiana law mandates that annual audit reports be submitted within six months after the fiscal year ends, which was not met.
  • Recommended Follow-Up: Management should enhance financial reporting by establishing formal year-end closing procedures and internal deadlines to ensure timely and accurate submissions.

Finding Text

Condition TCA did not submit its audited financial statements to the Louisiana Legislative Auditor within the statutory deadline in accordance with La. R.S. 24:513. This represents a compliance matter, as timely financial information was not available to support completion of the annual audit and reporting process. Criteria Louisiana Revised Statutes require annual audit reports to be submitted to the Louisiana Legislative Auditor within six months of TCA's fiscal year-end. Timely preparation of accounting records and financial information is necessary to ensure compliance with these reporting requirements. Cause TCA did not maintain sufficient procedures and financial reporting resources to ensure that complete and accurate accounting records were finalized on a timely basis. Effect Failure to remit audited financial statements to the Louisiana Legislative Auditor within the statutory date resulted in noncompliance with Louisiana law. Also, delays can increase the risk that grantors and other users of the financial statements will not receive timely financial information necessary for oversight and decision making. Recommendation We recommend management strengthen its financial reporting processes by implementing formal year-end closing procedures, establishing internal deadlines for preparation and review of accounting records, and dedicating sufficient resources to ensure that information required for the audit is complete and available in advance of statutory reporting deadlines.

Corrective Action Plan

TCA senior management team recognizes that there were several internal challenges that delayed beginning of the audit process, thus causing the noncompliance. TCA has policies and procedures in place that support the timely preparation of audit-ready financial statements. However, management recognizes that internal deadlines for the preparation and review of the accounting records need to be added to the existing policies and procedures. Additionally, the retirement of an accounting staff member and ongoing health challenges and absenteeism of fiscal personnel have also challenged agency compliance ability. The agency senior management team is conducting a time and effort study and comprehensive evaluation of accounting staffing, to ascertain if modifications or additions to staffing are needed. Recommendations and a corrective plan will be submitted by the Board of Directors by September 2026.

Categories

Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $21.17M
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $5.75M
93.569 COMMUNITY SERVICES BLOCK GRANT $1.69M
10.558 CHILD AND ADULT CARE FOOD PROGRAM $1.32M
21.019 CORONAVIRUS RELIEF FUND $488,406
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $226,933