FAC Explorer

Finding 525922 (2023-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-03-06
Audit: 345096
Organization: Hawkeye Area Community Action Program (IA)
Auditor: Wipfli LLP

AI Summary

  • Late Submission: HACAP submitted the audit package past the deadline, violating 2 CFR section 200.512(a).
  • Compliance Issue: This delay indicates a significant deficiency in internal controls over major program reporting.
  • Next Steps: HACAP should improve access to financial records to ensure timely audits and has a corrective action plan in place.

Finding Text

Late Audit Submission Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The September 30, 2023 audit and reporting package is being submitted after the required due date. Effect: HACAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over major program reporting. Cause: Due to restricted access to computer servers and having to rebuild electronic records, HACAP audit and data collection submission was not done on time. Repeat: No Auditor's Recommendations: HACAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Corrective Action Plan

The 2023 audit for Hawkeye Area Community Action Program, Inc (HACAP) was delayed due to a loss of financial data that was stored on an internal server because of a data breach. The back-up of the financial data was also stored on an internal server, was compromised as well, resulting in a complete loss of information. The financial information had to be rebuilt based on support documentation, and the reconstruction of the data took place over the course of several months. HACAP has migrated our financial accounting software to a data center managed by a 3rd party. A full backup of the database is done daily to both the cloud and to a hard drive that is securely stored. Person(s) Responsible: Jason Fisher, Cindy Johnson, Jim McGoldrick Timing for Implementation: Immediate/Completed

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 525921 2023-001
    Material Weakness
  • 525923 2023-001
    Material Weakness
  • 525924 2023-002
    Significant Deficiency
  • 525925 2023-001
    Material Weakness
  • 525926 2023-002
    Significant Deficiency
  • 525927 2023-001
    Material Weakness
  • 525928 2023-002
    Significant Deficiency
  • 525929 2023-001
    Material Weakness
  • 525930 2023-002
    Significant Deficiency
  • 525931 2023-001
    Material Weakness
  • 525932 2023-002
    Significant Deficiency
  • 1102363 2023-001
    Material Weakness
  • 1102364 2023-002
    Significant Deficiency
  • 1102365 2023-001
    Material Weakness
  • 1102366 2023-002
    Significant Deficiency
  • 1102367 2023-001
    Material Weakness
  • 1102368 2023-002
    Significant Deficiency
  • 1102369 2023-001
    Material Weakness
  • 1102370 2023-002
    Significant Deficiency
  • 1102371 2023-001
    Material Weakness
  • 1102372 2023-002
    Significant Deficiency
  • 1102373 2023-001
    Material Weakness
  • 1102374 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $2.05M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.81M
93.569 Community Services Block Grant $1.65M
10.558 Child and Adult Care Food Program $1.64M
64.033 Va Supportive Services for Veteran Families Program $1.58M
81.042 Weatherization Assistance for Low-Income Persons $859,123
93.575 Child Care and Development Block Grant $818,937
14.267 Continuum of Care Program $759,975
93.600 Head Start $614,586
93.499 Low Income Household Water Assistance Program $557,928
93.994 Maternal and Child Health Services Block Grant to the States $355,603
10.568 Emergency Food Assistance Program (administrative Costs) $348,678
93.778 Medical Assistance Program $238,942
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $148,129
93.568 Low-Income Home Energy Assistance $123,776
14.231 Emergency Solutions Grant Program $42,952
14.239 Home Investment Partnerships Program $22,096
14.218 Community Development Block Grants/entitlement Grants $22,000