Finding 26203 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-05-22
Audit: 27883
Organization: Community Youth Advance (MD)

AI Summary

  • Core Issue: Financial results were not ready on time, delaying the audit process before the SF-SAC deadline.
  • Impacted Requirements: Timely filing of the SF-SAC is essential for a functioning financial system.
  • Recommended Follow-Up: Develop procedures for timely completion and reconciliation of financial data, and implement a tracking system for SF-SAC due dates.

Finding Text

2022 ? 001: Timely Financial Reporting and SF-SAC Submission Criteria: Filing of the SF-SAC Submission timely represents a functioning financial system. Condition and Context: Complete financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC. Effect: Complete and accurate financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC. Recommendation: Procedures need to be developed for the following: ? Management should implement procedures to complete and reconcile all financial information within a reasonable time after year end. ? Management should implement a system to track the due date of the SF-SAC to ensure timely filing.

Corrective Action Plan

The prior auditor informed the organization (CYA) in November 2022 that they were not able to conduct the Single audit although CYA closed their FY 21-22 books timely (before November 2022). Therefore, CYA had to commence a search for another audit firm in November 2022. CYA was able to find and engage a new audit firm 3 months later. This caused a delay in starting the audit process for FY 21-22. We guarantee that in future years, the year-end closing will continue to be completed timely. Now that CYA has a new audit firm, capable of conducting Single Audits, we will ensure the audit process starts with sufficient lead time to ensure that the Single Audit process is completed timely. We have allocated the Human Resources needed to manage the increased workload and reporting requirements pertaining to CFR 200 Audit Requirements. Additional Human Resources will ensure a quicker year-end closing process and complete preparation for the year-end Single Audit process to be completed in a timely manner. In addition, moving forward we will confirm the audit engagement with the audit firm earlier to begin the audit process earlier in the subsequent year and plan sufficient time to provide the information needed to complete the financial audit and the Single Audit in a timely manner. Name of the contact persons responsible for corrective action: Jhae Thompson, Executive Director, and Goldin Group CPAs. Planned completion date for corrective action plan: The FY2023 books are expected to be closed by the end of October 2023. The FY2023 audit is expected to start in November 2023 and be completed by the end of March 2024.

Categories

Reporting

Other Findings in this Audit

  • 602645 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $1.24M