Finding 50720 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-24

AI Summary

  • Core Issue: The Center for Creativity, Innovation & Discovery failed to submit required financial reports to the USDA, indicating a material weakness in internal controls.
  • Impacted Requirements: There are specific USDA compliance criteria that mandate annual submission of audited financial statements and budgetary information.
  • Recommended Follow-Up: Implement policies and procedures to ensure timely submission of required reports to the USDA.

Finding Text

2022-001 U.S. Department of Agriculture, Federal Financial Assistance Listing 10.766 Community Facilities Loans and Grants Reporting Material Weakness in Internal Control over Compliance and Compliance Criteria: Center for Creativity, Innovation & Discovery should have policies and procedures in place to ensure audited financial statements and budgetary information are submitted annually to the USDA. Condition: In connection with the audit procedures performed, it was noted that the required reports were not submitted to the USDA. Center for Creativity, Innovation & Discovery?s system of internal control did not include procedures related to reporting to the USDA. Cause: Center for Creativity, Innovation & Discovery was unaware of the requirement to provide the required reports to the USDA. Effect: The School is not in compliance with USDA loan requirements. Questioned Costs: None reported Context: In connection with the audit procedures performed, it was noted that the required reports were not submitted to the USDA. Repeat Finding from Prior Year: No Recommendation: Center for Creativity, Innovation & Discovery should submit the required audited financial statements and budgetary information to the USDA. Views of Responsible Officials: Management agrees with this finding.

Corrective Action Plan

Finding 2022-001 Finding Summary: Responsible Individuals: Corrective Action Plan: Center for Creativity, Innovation & Discovery is required to submit annual financial statements and the proposed budget to the USDA. These items were not provided to the USDA by June 30, 2022. Brenda Bennett, Director Management will provide a copy of the audited financial statements and copy of the proposed budget to USDA annually. Anticipated Completion Date: Ongoing Anticipated Completion Date: Management has provided the audited financial statements and a copy of the proposed budget to USDA in December 2022 and will continue to ensure all necessary corrective action plan items are submitted to the USDA each year.

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 627162 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $7.22M
10.555 National School Lunch Program $248,058
84.425 Covid-19 Elementary and Secondary School Education Relief II $97,425
84.027 Special Education_grants to States $92,401
84.010 Title I Grants to Local Educational Agencies $57,270
84.358 Reap Grant $47,767
84.425 Covid-19 Governors Emergency Education Relief $30,494
84.367 Title Iia Improving Teacher Quality $9,358
84.425 Covid-19 Elementary and Secondary School Emergency Relief-American Rescue Plan $7,895
10.555 Covid-19-National School Lunch Program Emergency Operating $7,821
84.173 Special Education_preschool Grants $2,797