Finding 42158 (2022-004)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-05-07
Audit: 47803
Organization: Harpswell Coastal Academy, Inc. (ME)
Auditor: One River CPAS

AI Summary

  • Core Issue: The School submitted its single audit report over a month late due to not tracking federal expenditures properly.
  • Impacted Requirements: Compliance with 2 CFR 200.512(a)(1) was not met, as the audit was submitted after the nine-month deadline.
  • Recommended Follow-Up: Management should improve staffing and training in the fiscal department to ensure timely tracking of audit requirements, even if they believe further action is unnecessary due to the School's closure.

Finding Text

Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the School?s year-end. Condition and Context: The School did not track total federal expenditures to determine whether the School had gone over the limit to require a Single Audit, and final determination was not made until eight months after the fiscal year ended. Cause: Turnover in key financial staff and lack of understanding federal audit requirements. Effect: The audit was completed and submitted more than a month after the deadline. Questioned Costs: None Recommendation: Management should seek appropriate staffing and training for staff in the fiscal department to timely determine when a Single Audit is necessary. Views of Responsible Officials and Planned Corrective Actions: Management is now informed of the audit threshold and how to track it. However, management does not expect reaching the Single Audit requirement threshold again as they are closing the School, and thus, do not believe any further corrective actions are necessary.

Corrective Action Plan

Noncompliance and Material Weakness in Internal Control Compliance: The Organization did not complete and submit the single audit report within nine months of the Organization?s year-end. Recommendation: Management should seek appropriate staffing levels for the fiscal department to accurately track federal expenditures, and timely provide auditor requests. Action Taken/to be Taken: Ashley Hyde, Harpswell Coastal Academy?s Director of Business, Finance, and Operations hired in Fall 2022, will be responsible for corrective action. The corrective action planned is: Management does not expect reaching the Single Audit requirement threshold again as they are closing the School, and thus, do not believe any further corrective actions are necessary.

Categories

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Other Findings in this Audit

  • 42157 2022-003
    Significant Deficiency
  • 618599 2022-003
    Significant Deficiency
  • 618600 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $332,106
84.010 Title I Grants to Local Educational Agencies $28,924
84.424 Student Support and Academic Enrichment Program $8,836
84.367 Improving Teacher Quality State Grants $4,914
84.027 Special Education_grants to States $4,613