Finding 398336 (2023-001)

Finding Reference: (2023-001) Material Weakness Criteria - Management is responsible for establishing and maintaining effective internal controls and for the fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition - The Data Collection Form for the year ended May 31, 2023 was not filed with the Federal Audit Clearinghouse within nine months after year end. Cause - The late filing resulted from a lack of internal controls over Federal financial reporting. Effect - The Data Collection Form for the year ended May 31, 2023 was not filed with the Federal Audit Clearinghouse within nine months after year end. Questioned Costs - None identified. Recommendation - Adirondack Community Action Programs, Inc. should establish accounting procedures to properly identify Federal expenditures and implement controls to complete the timely submission of the Data Collection Form. Management’s Response - Finding 2023-001 Adirondack Community Action Programs Inc. (ACAP) is committed to addressing the finding highlighted in the Independent Auditor's Report on Compliance regarding late filing of the Data Collection Form. We recognize the importance of timely reporting for organizational compliance. We were fortunate to receive significant additional unexpected financial resources in the year in question to assist with COVID recovery and support for our work in Child Care. These additional resources were welcomed, but created a temporary significant increase in the workload for our business office. We pride ourselves on our internal controls and comprehensive financial procedures and expect this delay to be isolated to the year in question. As in the past, ACAP will: • Ensure adequate staffing levels given the increases we have been experiencing in annual revenue. • Continue to review our internal processes related to financial reporting and filing deadlines. Identify any bottlenecks or inefficiencies contributing to the delays. • Continue to foster effective communication channels among team members responsible for financial reporting. Continue to ensure everyone understands their roles and responsibilities in meeting filing deadlines. • As always encourage training and development opportunities for staff. • Consider engaging external consultants or advisors to provide guidance around best practices. • Continue to foster a culture of continuous improvement within the organization. Encourage feedback from staff members on ways to streamline processes and identify opportunities for improvement. By implementing these corrective actions, ACAP is confident that we can address this late filing finding and strengthen our financial reporting practices moving forward. We are committed to ensuring timely and accurate reporting to uphold the trust and confidence of our stakeholders.