Finding 517392 (2023-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-01-01

AI Summary

  • Core Issue: The Foundation missed the deadline for submitting the audit and related documents, which was September 30, 2024.
  • Impacted Requirements: This failure violates 2 CFR Section 200.512(a), raising concerns about compliance and reliability.
  • Recommended Follow-Up: Ensure the Foundation has stable and competent accounting staff to meet reporting deadlines effectively.

Finding Text

Criteria: In accordance with 2 CFR Section 200.512(a), the audit must be complete, and the data collection form and the reporting package must be submitted within the earlier of 30 days after receipt of the auditor’s report(s), or nine months after the end of the audit period, adjusted for any extension permitted by the Office of Management and Budget. The Foundation failed to meet the nine-month deadline. Condition: The audit, reporting package and data collection form for the year ended December 31, 2023, was not filed by the deadline of September 30, 2024, to the Federal Audit Clearinghouse. Cause: Turnover in key accounting personnel in December 2023 caused key accounts to not be reconciled timely and information requested for the audit difficult to find in a timely manner. Effect or potential effect: Delays in submission of audit reports, reporting packages and data collection forms raise concerns about the Foundation’s reliability in adhering to accounting and compliance requirements in a timely manner, potentially jeopardizing its ability to secure funding. Recommendation: We recommend that Foundation maintain competent accounting personnel which has the time and resources needed to ensure compliance with its reporting deadlines. Views of responsible officers: Management acknowledges this finding and will address remediation in the accompanying management’s corrective action plan in appendix A.

Corrective Action Plan

Management's Response: We concur. View of Responsible Officials and Corrective Action: In 2024, TPREF engaged an independent accounting firm to reconcile all accounts and perform month-end and year-end close activities. Also in 2023-2024, TPREF reviewed and established proper utilization of new accounting software to support timely reporting to align with policies and procedures. To provide greater oversight and supervision, and to ensure timely and accurate charging of expenses, billing, and revenue recognition, the accounting firm assumed responsibility for accounts receivable with reporting to the CEO. In 2025, the accounting firm will be supplemented by an in-house bookkeeper to manage accounts receivables with oversight by the CEO and accounting firm. Anticipated Completion Date: The onboarding to new accounting firm was completed in September 2024 and TPREF has transitioned to regular client services management. By end of the first quarter 2025, TPREF will have hired and onboarded an in-house bookkeeper to supplement the accounting firm.

Categories

Reporting

Other Findings in this Audit

  • 517393 2023-003
    Material Weakness
  • 517394 2023-004
    Material Weakness Repeat
  • 517395 2023-005
    Material Weakness Repeat
  • 517396 2023-006
    Material Weakness
  • 1093834 2023-002
    Significant Deficiency
  • 1093835 2023-003
    Material Weakness
  • 1093836 2023-004
    Material Weakness Repeat
  • 1093837 2023-005
    Material Weakness Repeat
  • 1093838 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.268 Immunization Cooperative Agreements $5.58M
93.426 The National Cardiovascular Health Program $146,384