Finding 479516 (2023-001)

- Repeat Finding
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-07-26
Audit: 316046
Organization: Carolina University (NC)

AI Summary

  • Issue: The Organization missed the deadline for submitting the 2023 single audit reporting package and data collection form.
  • Requirements Impacted: This violates the Uniform Guidance Part 200.512(a)(1), which mandates timely submission within 30 days of the auditor's report or nine months post-audit period.
  • Follow-Up: The Organization should review and improve its financial closing process to prevent future delays.

Finding Text

Criteria: The Uniform Guidance Part 200.512(a)(1) states: “The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.” Condition: The Organization did not submit its 2023 single audit reporting package and data collection form in a timely manner. Cause: Information needed to support the audit of financial statements, including certain significant estimates required to be reported, was not readily available. Effect: The Organization is late with required filings. Repeat Finding: This is a repeat finding (Finding 2022-001). Questioned Costs: None. Recommendation: The Organization should re-evaluate the financial closing process. View of Responsible Officials: See Management's Corrective Action Plan.

Corrective Action Plan

Management agrees with the finding of the auditor's report concerning the failure to timely submit our 2023 single audit reporting package and data collection form in a timely manner. We have suffered changes in personnel which had a significant impact on our ability to gather information needed to finalize our accounting records. New staff members who have taken on these responsibilities are in the process of learning those procedures and adapting to our organization's specific requirements. Additionally, there were some communication challenges during the audit process which led to misunderstandings and further delays. In addressing these challenges, we are providing additional training and support for our new staff members and reevaluating our financial closing processes to ensure that reporting deadlines are met in future periods. In addition, we were awaiting two significant financial transactions that will have a direct and substantial impact on our 2022-2023 financial reports. The most significant of those transactions was a very large estate gift that was pending at the close of the fiscal year (gift receivable). The value of this gift was difficult to assess because of the nature of the gift as part of a sizeable and complicated trust (as well as a very lengthy liquidation process). The gift finally arrived in April 2024 which provided us with the correct valuations (an increase in net assets without donor restrictions of over $4 million). A gift of this magnitude had such a substantial financial impact that we needed to wait for its completion in order to properly assess our financial position. The second transaction (a sale of unused property) closed in late May which enabled us to accurately reflect the impact of these previously pending items. Responsible Official: Chris Ronk, Chief Financial Officer (800) 937-5097

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.38M
84.063 Federal Pell Grant Program $962,815
84.033 Federal Work-Study Program $66,702
84.007 Federal Supplemental Educational Opportunity Grants $49,740