Finding 496382 (2022-002)

- Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2024-09-10

Audit: 319269

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 leads to noncompliance with federal audit guidelines.
Recommended Follow-Up: DSCEJ should ensure timely engagement of an independent auditor to avoid future compliance issues.

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 28.

Corrective Action Plan

DSCEJ has implemented internal processes and controls to ensure timely submission of audits. 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 in May 2024. The 2022 audit was completed shortly thereafter on August 2024. We anticipate beginning the 2023 audit shortly thereafter.

Other Findings in this Audit

1072824 2022-002

- Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.142	Niehs Hazardous Waste Worker Health and Safety Training	$814,637