Finding 568929 (2023-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-06-30
Audit: 360627
Organization: Rural Coalition (DC)

AI Summary

  • Issue: The single audit report was not submitted on time to the Office of Management and Budget, violating reporting requirements.
  • Impacted Requirements: The delay breaches the COSO framework and Uniform Guidance 2 CFR 200.501, which mandate timely submission of audit reports.
  • Recommended Follow-up: Improve year-end closing and audit preparation timelines, with management monitoring to ensure compliance with due dates.

Finding Text

Condition/Context: The single audit report was not submitted to the Office of Management and Budget in accordance with the reporting requirement. Criteria: COSO/Internal Control Framework defines control activities as “policies and procedures that help ensure management’s directives are carried out.” This would include preparation of the schedule of expenditures of federal awards and the related data collection form in a timely manner. Uniform Guidance 2 CFR 200.501 states that the audit shall be completed, and the data collection form shall be submitted within the earlier of 30 days after the receipt of the auditor’s report, or 9 months after the end of the audit period. The due date was extended six months as a result of the challenges related to the coronavirus pandemic. Cause: The single audit report was not submitted due to delays in the year-end closing process, resulting in the audit being delayed. Effect: Questioned Costs: None Recommendation: We believe the year-end closing and audit preparation processes should be completed sooner after year end. Progress should be monitored by management to ensure that established due dates are being met and required reports are submitted to regulatory agencies within the compliance time frame. As a result of the finding, the organization did not provide required information to its federal oversight agency in a timely manner.

Corrective Action Plan

Rural Coalition has implemented clear, standardized procedures for all program and services. We have also implemented a comprehensive review of current resource allocation and set in place a more effective budget management plan so the grant funds can be managed efficiently removing the reporting backlog we believe we will no longer face. Views of Responsible Officials and Planned Corrective Actions: In Fiscal Year 2023 we are still managing additional complex projects, and though we closed out our grant reporting and deliverables sooner, the delay in the start and therefore the completion of the FY 2022 still left us behind schedule. We completed the close out process much more quickly with new procedures in place, but we are still delayed. We also once again had an increased workload corresponding to additional grant funds, which coupled with the backlog we faced, we exacerbated the challenges surrounding this year’s year end closing process. We moved during late FY 2023 to a new credit card that allowed us to collect and code receipts as expenditures were made, and this helped us for 2024 get closer to a quicker closeout. Our FY 2024 audit is now underway and we believe for 2024 we will be able to complete the single audit in time to meet the deadline for submitting the single audit report to the Office of Management and Budget. We guarantee that in future years, the year-end closing will be completed earlier now that we have overcome the backlog and have developed and implemented the necessary systems. We also guarantee that we will start the single audit within 4 months after the fiscal year-end and that the single audit will be completed timely moving forward.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 568930 2023-001
    Significant Deficiency Repeat
  • 568931 2023-001
    Significant Deficiency Repeat
  • 568932 2023-001
    Significant Deficiency Repeat
  • 568933 2023-001
    Significant Deficiency Repeat
  • 568934 2023-001
    Significant Deficiency Repeat
  • 568935 2023-001
    Significant Deficiency Repeat
  • 568936 2023-001
    Significant Deficiency Repeat
  • 568937 2023-001
    Significant Deficiency Repeat
  • 1145371 2023-001
    Significant Deficiency Repeat
  • 1145372 2023-001
    Significant Deficiency Repeat
  • 1145373 2023-001
    Significant Deficiency Repeat
  • 1145374 2023-001
    Significant Deficiency Repeat
  • 1145375 2023-001
    Significant Deficiency Repeat
  • 1145376 2023-001
    Significant Deficiency Repeat
  • 1145377 2023-001
    Significant Deficiency Repeat
  • 1145378 2023-001
    Significant Deficiency Repeat
  • 1145379 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.181 Pandemic Relief Activities: Farm and Food Worker Relief Grant Program $1.77M
10.234 American Rescue Plan Technical Assistance Investment Program $1.46M
10.975 Emergency Relief Program Outreach Education and Technical Assistance $422,779
10.902 Soil and Water Conservation $226,579
10.025 Plant and Animal Disease, Pest Control, and Animal Care $125,605
10.311 Beginning Farmer and Rancher Development Program $121,676
10.460 Risk Management Education Partnerships $66,665
10.310 Agriculture and Food Research Initiative (afri) $32,500
10.950 Agricultural Statistics Reports $1,992