FAC Explorer

Finding 480138 (2023-002)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-08-01
Audit: 316459
Organization: Telamon Corporation (NC)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The audit report for the year ending September 30, 2023, was submitted late, missing the June 30, 2024, deadline.
  • Impacted Requirements: This violates 45 CFR Part 75.512, which mandates timely submission of audit reports to ensure federal oversight.
  • Recommended Follow-Up: Management should enhance procedures and controls to prevent future delays, as outlined in Finding 2023-001.

Finding Text

Finding 2023-002–Late Audit Reporting Nonmaterial Noncompliance–Reporting Identification of the federal program: U.S. Department of Agriculture Direct awards Program Name: Child and Adult Care Food Program ALN # 10.558 U.S. Department of Treasury Passed through the State of North Carolina Program Name: COVID-19: Emergency Rental Assistance ALN # 21.023 U.S. Department of Health and Human Services Direct awards Program Name: Head Start Cluster ALN # 93.600 Criteria: Under 45 CFR Part 75.512, the Uniform Guidance requires that audited financial statements and related data collection form are submitted by 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 audit of the Organization for the year ended September 30, 2023 had a submission deadline of June 30, 2024. The Organization did not complete and submit their audit for the year ended September 30, 2023 to the federal clearinghouse until July 2024. Cause: Significant delays stemming from Finding 2023-001 caused the required audit procedures and the ultimate completion date to extend beyond the regulatory deadline. Effect: The late filing could potentially delay the ability of the federal government to monitor the Organization. Questioned costs: None Context: No monetary value or effect on population as the condition relates to the late filing of the audit report. Repeat finding: Yes – (Finding 2022-003) Recommendation: We recommend that management implement procedures and controls as described in Finding 2023-001 to ensure future audits are completed timely. Views of responsible officials and planned corrective actions: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Finding 2023-002–Late Audit Reporting The audit of the Organization for the year ended September 30, 2023 had a submission deadline of June 30, 2024. The Organization did not complete and submit their audit for the year ended September 30, 2023 to the federal clearinghouse until July 2024. Corrective Action Planned As mentioned above the timing of the September 30, 2023 Audit was heavily impacted by turnover in senior financial staff happening just before this audit began. Telamon Finance staff have worked diligently to meet the June 30th deadline, but ultimately, we needed more time to ensure that the figures were correct, and we had a good starting point for FY24. Steve and Michole will benefit from starting their positions at the beginning of this audit, which has significantly sped up the learning curve. We will continue to build out our Sage Intacct reports to provide better data to the Board, Management, and Operations. Based on audit requests we can also design reports that will help provide needed information for the FY24 audit. The Intacct SEFA report will be run quarterly. We will begin the FY24 Audit well ahead of time to ensure that we report timely for FY24. Responsible Official: Steven Mayne, CFO Anticipated Completion Date: September 2024

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.023 Covid-19 - Emergency Rental Assistance Program $9.99M
93.600 Head Start $1.93M
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $966,806
93.568 Low-Income Home Energy Assistance $320,400
64.033 Va Supportive Services for Veteran Families Program $145,161
10.558 Child and Adult Care Food Program $143,230
14.417 Fair Housing Organization Initiatives $132,336
17.805 Homeless Veterans Reintegration Project $120,979
14.267 Continuum of Care Program $63,359
21.026 Homeowner Assistance Fund $44,511
10.181 Ams - Pandemic Response and Safety Grants Program/ Ams - Farmworker and Meatpacking Worker Relief Grant Program $42,964
10.311 Beginning Farmer and Rancher Development Program $36,685
17.264 National Farmworker Jobs Program $12,072
14.416 Education and Outreach Initiatives $11,430
99.U01 Housing Stability Counseling Program $8,729
17.259 Wia Youth Activities $8,369
93.569 Community Services Block Grant $1,710
81.042 Weatherization Assistance for Low-Income Persons $529
64.024 Va Homeless Providers Grant and Per Diem Program $297
14.169 Housing Counseling Assistance Program $276
66.714 Regional Agricultural Ipm Grants $274
14.231 Emergency Solutions Grant Program $116
84.011 Migrant Education_state Grant Program $-1,565