Finding 521142 (2022-004)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2025-02-04
Audit: 341102
Organization: Children's Defense Fund (DC)
Auditor: Mitchell & Titus

AI Summary

  • Core Issue: CDF failed to submit its Single Audit Package on time, violating federal regulations.
  • Impacted Requirements: This finding highlights a material weakness in internal controls over compliance, specifically under 2 CFR Part 200.512.
  • Recommended Follow-Up: CDF should establish procedures to ensure timely submission of audit reports to avoid being designated a high-risk auditee.

Finding Text

Finding 2022–004: Late Submission of Reporting Package Federal Department: U.S. Department of Education Pass-through Agencies: State of South Carolina Department of Education, Minnesota Department of Education, and DC Office of the State Superintendent of Education Federal Program Name: Twenty-First Century Community Learning Centers Assistance Listing Number: 84.287 Type of Finding:  Material Weakness in Internal Control over Compliance  Other Matters   Criteria 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F – Audit Requirements, Section 200.512, Report submission, states “(a) General. (1) The audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize an extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.” Condition/Context CDF did not submit its Single Audit Package in a timely manner as required by federal regulations. The federal reporting deadline for CDF’s Single Audit Reporting Package for the year ended December 31, 2022, was September 30, 2023. As of the audit report date, CDF has not yet submitted its Single Audit Reporting Package. Cause Based on discussions with management, this finding occurred due to disruption in the accounting platform because of staff turnover, which resulted in the financial and compliance audits being completed later than anticipated. Effect The late submission of the Single Audit Package is a violation of federal regulations and impairs grantor agencies’ ability to monitor federally funded program. As a result, CDF is designated a high-risk auditee until it accomplishes timely submission of its Single Audit Package for two consecutive years. Questioned Costs Not applicable. Identification of Repeat Finding Repeated (Prior Finding No. 2021-002). Recommendation We recommend that CDF implement procedures to ensure timely completion and submission of its Single Audit Reporting Package in accordance with 2 CFR Part 200.512. Views of Responsible Officials and Planned Corrective Action CDF agrees with the finding and recommendation. See CDF’s Corrective Action Plan on pages 17-18.

Corrective Action Plan

Finding 2022-004 Name of Responsible Individual: Carolina Liriano, Grant Manager; Holly Forester, Controller; Sheri Brady, VP and Chief Program Officer Corrective Action: CDF will enhance its internal processes and staffing to ensure the timely submission of future Single Audit Reporting Packages. In January 2025, CDF hired an Outsourced Grant Manager dedicated to overseeing federal grant management, including the coordination and timely submission of all required audit and reporting packages. Key actions include:  Establishing and maintaining a robust timeline for audit activities, closely collaborating with both the accounting team and external auditors to guarantee adherence to submission deadlines.  Implementing a cross-training program within the accounting and compliance departments to mitigate the risk of disruption due to staff turnover, ensuring multiple staff members are proficient in handling audit-related tasks.  Scheduling regular internal audits and compliance checks to proactively identify and address potential issues well in advance of filing deadlines. Anticipated Completion Date: December 31, 2025.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness Reporting

Other Findings in this Audit

  • 521139 2022-001
    Significant Deficiency
  • 521140 2022-002
    Material Weakness
  • 521141 2022-003
    Material Weakness
  • 521143 2022-001
    Significant Deficiency
  • 521144 2022-002
    Material Weakness
  • 521145 2022-003
    Material Weakness
  • 521146 2022-004
    Material Weakness Repeat
  • 521147 2022-001
    Significant Deficiency
  • 521148 2022-002
    Material Weakness
  • 521149 2022-003
    Material Weakness
  • 521150 2022-004
    Material Weakness Repeat
  • 1097581 2022-001
    Significant Deficiency
  • 1097582 2022-002
    Material Weakness
  • 1097583 2022-003
    Material Weakness
  • 1097584 2022-004
    Material Weakness Repeat
  • 1097585 2022-001
    Significant Deficiency
  • 1097586 2022-002
    Material Weakness
  • 1097587 2022-003
    Material Weakness
  • 1097588 2022-004
    Material Weakness Repeat
  • 1097589 2022-001
    Significant Deficiency
  • 1097590 2022-002
    Material Weakness
  • 1097591 2022-003
    Material Weakness
  • 1097592 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $390,621
93.110 Maternal and Child Health Federal Consolidated Programs $362,009
93.767 Children's Health Insurance Program $337,822
93.434 Every Student Succeeds Act/preschool Development Grants $142,943
84.287 Twenty-First Century Community Learning Centers $135,887
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $30,224