Finding 36530 (2022-001)

Material Weakness

Requirement

Questioned Costs

Year

2022

Accepted

2023-09-17

Audit: 26735

Organization: Southern Oregon Child and Family Council, Inc. (OR)

Auditor: Wipfli LLP

AI Summary

Issue: The audit report was submitted late, violating 2 CFR section 200.512(a).
Impact: Late submission risks federal and state funding suspension.
Next Steps: Management is implementing a plan to keep financial records current and ensure timely audits.

Finding Text

2022-001 Late Submission Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditor or nine months after the end of the audit period. Condition: The fiscal year audit and reporting package is being submitted after the required due date. Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: Turnover in fiscal and management personnel resulted in delays in preparing for the October 31, 2022 audit and providing audit documentation in a timely manner. Repeat: No Auditor's Recommendations: Southern Oregon Child & Family Council, Inc. should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and audited within nine months after year end. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.

Corrective Action Plan

2022-001 ? Late Submission Corrective Action Plan ? The Finance Director and Fiscal Department will continue to implement changes in these areas: -Task delegation -Project management -Training During the past year, SOCFC has encountered many challenges, including changes to upper management and new staff in the fiscal department. Some fiscal staff have now participated in their first audit with the agency and have developed enhanced skills from the experience along with a greater understanding of the time management demands. This experience has also generated a deeper understanding of the agency?s requirements and expectations throughout the audit process. The Finance Director will continue to expound on this experience by delegating work among the fiscal staff and ensuring complete training with follow-up, that includes, but is not limited to: fixed asset schedules, lease schedules, and payroll reconciliations. In the past, the Finance Director has completed the major schedules at year end. Going forward, audit schedules and requirements will be reviewed, modified and/or developed in August 2023. Schedules, tasks and duties will be delegated to the fiscal staff by September 30, 2023, in order to allow for completion of audit schedules with adequate time to be review by the Finance Director. Timeline for Implementation ? August 2023 through January 2024 Deborah DeSarah, Finance Director Katherine Clayton, Executive Director

Other Findings in this Audit

36531 2022-001

Material Weakness
612972 2022-001

Material Weakness
612973 2022-001

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
93.600	Head Start	$11.47M
10.558	Child and Adult Care Food Program	$454,591