Finding 396987 (2023-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-05-15
Audit: 306391
Organization: Connected Lane County (OR)
Auditor: Jones & Roth PC

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, leading to unrecognized federal awards.
  • Impacted Requirements: Management was unaware of the need for a single audit when federal expenditures exceeded $750,000.
  • Recommended Follow-Up: Management should regularly review federal award expenditures to ensure compliance and determine if a single audit is necessary.

Finding Text

Finding 2023-002 Type of Finding: Material weakness in internal controls over compliance Criteria: In accordance with the Uniform Guidance (2 CFR 200, subpart F), it is the responsibility of Connected Lane County’s management to ensure there are properly designed and implemented internal controls in order to identify federal awards and expenditures of federal awards and to identify when a single audit is required. Condition and Context: While performing audit procedures, we identified federal awards that were not previously identified as such by management at the commencement of the audit. Management was not aware of the requirement for the Organization to undergo a single audit in the case expenditures of federal awards exceeded $750,000. We noted the federal awards and expenditures of federal awards were separately tracked in the Organization’s accounting records. Cause of Condition: Management failed to identify the requirement for the Organization to undergo a single audit for the fiscal year June 30, 2023. Effect of Condition: The effect of the condition is that the Organization could be out of compliance with its federal awards. Questioned Costs: None. Repeat Finding: No. Recommendation: We recommend management ensure review of the annual expenditures of federal awards to determine whether the Organization is required to undergo a single audit in order to be in compliance with the terms of its federal awards.

Corrective Action Plan

Finding 2023-002 Corrective Action Planned : Management is already tracking federal expenditures throughout the year. Management will review annual federal expenditures in a timely manner to ensure that we understand whether we need to undergo a single audit. Date by which corrective action will be implemented: July 2024, following the close of year-end. Person(s) Responsible: Heidi Larwick, Executive Director and Mary Bell , Finance Specialist

Categories

Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 973429 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
17.259 Wia Youth Activities $867,593