Finding 370966 (2022-002)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2024-02-28
Audit: 292598
Organization: S. Tracy Howard Project, Inc. (TX)

AI Summary

  • Issue: The Organization missed the July 31, 2023 deadline for its single audit submission.
  • Impacted Requirements: Failure to submit the audit on time led to serious deficiencies noted by the Texas Department of Agriculture, risking termination of agreements.
  • Recommended Follow-Up: Hire a qualified accountant to improve record-keeping and ensure timely financial reporting in the future.

Finding Text

2022-002 Single Audit Submission Criteria: The Organization’s single audit was due by July 31, 2023. Condition: The Organization’s single audit was not submitted by the due date. Cause: The Organization initiated the audit engagement with the auditor on June 19, 2023, which did not allow adequate time to complete the audit; in addition, the books and records were not in an organized or accurate manner, which required extensive additional procedures and adjustments to the accounts. Effect: The Organization was not able to timely provide its audited financial statements to its regulators and grantor agencies. As a result, the Texas Department of Agriculture has determined the Organization to be seriously deficient in the management of its programs, and has stated that if the Organization does not fully and permanently correct the deficiencies, it will terminate its agreement with the Organization.Recommendation: The Organization should employ or hire a knowledgeable and experienced accountant to maintain its books and records, and implement appropriate controls and accounting processes to ensure the accuracy of its financial statements and the timely filing of its reporting requirements. Views of Responsible Officials and Planned Corrective Actions: The Program Coordinator fell ill during the time of the audit’s due date and was unable to effectively participate until having recovered later in the process. The Organization plans to hire a skilled accountant to manage its books and records going forward.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The Program Coordinator fell ill during the time of the audit’s due date and was unable to effectively participate until having recovered later in the process. The Organization plans to hire a skilled accountant to manage its books and records going forward.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $597,662
10.559 Summer Food Service Program for Children $363,499