Finding 399275 (2021-002)

Requirement

Questioned Costs

Year

2021

Accepted

2024-05-31

Audit: 307794

Organization: Deep South Center for Environmental Justice (LA)

Auditor: Luther Speight and Company CPAS

AI Summary

Core Issue: DSCEJ missed the deadline for engaging an independent auditor, which is required within 9 months after the fiscal year-end.
Impacted Requirements: This delay results in noncompliance with federal audit guidelines.
Recommended Follow-Up: DSCEJ should ensure timely engagement of an independent auditor in future audits.

Finding Text

CRITERIA: The federal audit clearinghouse requires that independent audits be completed and uploaded to their database no later than 9 months after the fiscal year-end of DSCEJ. CONDITION: DSCEJ did not engage an independent auditor on a timely basis. The independent auditor was not engaged until after the 9 month deadline had expired. CAUSE: We were unable to determine the cause for this condition. EFFECT: Delinquent filing of DSCEJ's independent audit represents noncompliance with the federal guidelines. RECOMMENDATION: We recommend that DSCEJ engage its independent auditor on a timely basis. MANAGEMENT'S RESPONSE: See management's corrective action plan on page 26.

Corrective Action Plan

DSCEJ has implemented internal processes and controls to ensure timely submission of audits. DSCEJ experienced a massive shift in funding, programming, and scaling during the pandemic (2021). In early 2022, an audit firm was engaged to perform the 2021 audit. That firm, for reasons unrelated to DSCEJ, delayed commencement of the audit for months and finally withdrew from the engagement before beginning. Another audit firm was engaged in 2023 and has completed the 2021 audit. The 2022 audit will begin in May 2024 with an expected completion date of July 2024. We anticipate beginning the 2023 audit shortly thereafter.

Other Findings in this Audit

975717 2021-002

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Programs in Audit

ALN	Program Name	Expenditures
93.142	Niehs Hazardous Waste Worker Health and Safety Training	$929,008