Finding 25126 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-11

AI Summary

  • Issue: The program-specific audit was not submitted on time, missing the nine-month deadline after the audit period ended.
  • Impacted Requirement: Reports must be submitted within 30 days of receiving the auditor's report or nine months after the audit period, as per compliance guidelines.
  • Follow-Up: Ensure timely preparation of all necessary documents to allow for on-time completion and submission of future audits.

Finding Text

FINDING 2022-001: REPORT SUBMISSION FOR PROGRAM-SPECIFIC AUDITS Program: Economic Adjustment Assistance Assistance Listing Number: 11.307 Compliance Requirement: Reporting Criteria: The program-specific audit must be completed and submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a different period is specified in a program-specific audit guide. Conditions: The program-specific audit was not submitted within the required nine months after the year end. Cause: The program-specific audit was engaged on April 2023 after the required submission date of the program-specific audit of March 2023 nine months after the year end of June 30, 2022. Effect: Due to delay in the program specific audit the required submission date of the program specific audit to the Federal Audit Clearinghouse is not met. Recommendation: Timely preparation of all required documentation for the program specific audit to have sufficient time for the completion of the program specific audit.

Corrective Action Plan

Management Response: We understand and agree that the audit is being completed and submitted later the requirement of ?within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a different period is specified in a program-specific audit guide.? Corrective Action Plan: Because of the challenges with our prior audit engagement for 2020-2021 and the extended time to complete that audit, we could not engage in the audit for 2021-2022 until April of 2023. The 2020-2021 audit was submitted in February of 2022, and that is when we reached out to the current auditor for an engagement to begin this audit. This has caused a snowball effect that may also delay our ability to complete and submit the next audit (2022-2023) in a timely fashion as well. While we are working diligently to keep this from being the case, there are significant challenges in securing and engaging reasonably-priced auditors that understand the complexities of the type of funding we have (multiple Revolving Loan Funds & two CARES Act Grants).

Categories

Reporting

Other Findings in this Audit

  • 25127 2022-001
    Material Weakness
  • 25128 2022-001
    Material Weakness
  • 601568 2022-001
    Material Weakness
  • 601569 2022-001
    Material Weakness
  • 601570 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance $184,560