Finding Text
Material Weakness and Reportable Noncompliance
Condition: The audit reports for 2017, 2018, 2019, 2020, 2021, 2022, and 2023 were not timely submitted to the Federal Clearinghouse.
Criteria: Uniform Guidance requires audits to be submitted to the Clearinghouse no later than nine months after year-end.
Cause: Turnover in upper management and inadequate resources prevented the audits from being completed in a timely manner and submitted.
Effect: Noncompliance with reporting requirements.
Recommendation: Management needs to ensure that financial information is complete and provided to the auditors within a reasonable time frame so that the audit can be completed and submitted within nine months after year end.
Views of Responsible Officials and Planned Corrective Actions: Community Action of East Central Indiana, Inc. ceased operations as of July 31, 2024 for any new business. Community Development Institute (CDI), as contracted by the Office of Head Start, has taken over the leadership and operations.