Finding 204812 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-01

AI Summary

  • Core Issue: The organization failed to submit its year-end financial information by the required deadline, missing the March 31, 2023, submission date.
  • Impacted Requirements: This delay affects compliance with federal regulations for nonprofits receiving over $750,000 in federal awards, risking funding delays.
  • Recommended Follow-Up: Management should allocate more resources and hire staff to ensure timely financial reporting and audit completion in the future.

Finding Text

Finding 2022-002: Delayed Reporting of Year-End Financial Information Criteria: Nonprofit organizations expending more than $750,000 in federal awards during a fiscal year are required to have a Single Audit and to submit a Data Collection Form to the Federal Audit Clearinghouse, along with the audited financial statements, by the earlier of 30 calendar days after receipt of the auditors' reports or nine months after the end of the audit period. Condition: The Organization's audit for the year ended June 30, 2022, was not submitted March 31, 2023, the latest date for the Organization to submit a timely Data Collection Form and audited financial statements to the Federal Audit Clearinghouse. Effect: The Organization's funding from federal and/or state agencies may be delayed as a result of the late submission. Cause: The Finance Director's position was vacant for most of the June 30, 2022 audit preparation period, it subsequently contracted with an outside CPA to assist with its audit preparation, and also, hired a new fiscal finance director to facilitate prompt financial reporting, and audit completion. Recommendation: We recommend that management continue its commitment of additional resources and staffing, to ensure prompt financial reporting to Board and grantors in a timely manner. . Views of Responsible Officials: Management agrees with this finding. See corrective action plan page for management?s response.

Corrective Action Plan

SIGNIFICANT WEAKNESS 2022 ? 002 Financial Statements Name of contact person: Raymond Lankford, CEO Corrective Action: OPIC hired a new CEO, Chief Fiscal Officer, and procured the services and of an outside CPA to facilitate prompt financial statement and audit preparation. OPIC also, has in place plans to replace it aging accounting software, and modernize its operations. Proposed Completion Date: Immediately.

Categories

Reporting

Other Findings in this Audit

  • 204811 2022-001
    Significant Deficiency Repeat
  • 781253 2022-001
    Significant Deficiency Repeat
  • 781254 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.278 Wia Dislocated Worker Formula Grants $785,240
17.277 Workforce Investment Act (wia) National Emergency Grants $510,906
17.259 Wia Youth Activities $154,002
17.258 Wia Adult Program $49,099