Finding 573422 (2024-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-08-13
Audit: 364167
Auditor: Wipfli LLP

AI Summary

  • Core Issue: The Organization failed to submit the data collection form on time, leading to a material weakness in internal controls.
  • Impacted Requirements: Noncompliance with reporting requirements as outlined in 2 CFR Part 200.512.
  • Recommended Follow-Up: Implement systems to ensure timely audit completion and submission to the Federal Audit Clearinghouse.

Finding Text

Finding Number: 2024-002 Repeat Finding: No Type of Finding: Material Weakness in Internal Control and Material Noncompliance Description: Data Collection Form Late Filing Federal Programs: AL#93.568 - Low Income Home Energy Assistance Program - Award numbers: 58230003849, 58240004039 and 58930004002 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Reporting Condition: The Organization did not submit the data collection form and reporting package for the year ended April 30, 2024 to the Federal Audit Clearinghouse in a timely manner. Criteria: The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditor's report or nine months after the end of the audit period. Cause: The submission of the data collection form was delayed due to insufficient audit preparation. The lack of readiness for the audit resulted in unforeseen complications, which ultimately caused the delay in completing the audit and submitting the required documentation. Effect: The Organization was not in compliance with audit submission requirements, resulting in material noncompliance and a material weakness in internal controls over compliance. Recommendation: We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.

Corrective Action Plan

2024-002 – Material Weakness in Internal Control and Material Noncompliance- Data Collection Form Late Filing Corrective Action Plan TCCA will actively participate in the planning and assistance needed for the Organization’s independent accounting firm to ensure a smooth and timely audit of its financial statements. In this regard, the Accounting Department will support the independent auditors in the following areas: Planning: The Chief Financial Officer (CFO) is responsible for delegating assignments and responsibilities to the accounting staff in preparation for the audit. The CFO will review the list of information requested by the auditors and assign responsibility for each item to the appropriate TCCA staff members. Additionally, the CFO will schedule regular status meetings in the weeks leading up to the audit to monitor the progress of the staff in preparing for the audit. The CFO will arrange and coordinate all meetings, interviews, telephone discussions, and conference calls requested by the auditors with TCCA board members, audit or finance committee members, or employees of TCCA to facilitate the auditors’ work. Prior to any such meetings or discussions, the CFO will inform each participant from the Organization about the nature of the discussion or meeting and any preparations they should undertake. Furthermore, the CFO will emphasize to each TCCA participant in these meetings or discussions the importance of being open, honest, and straightforward with the auditors regarding any questions posed. Involvement – Organization staff will undertake as much work as possible to assist the auditors, thereby helping to reduce the overall cost of the audit. Interim Procedures – To ensure the timely completion of the annual audit, independent auditors may perform selected audit procedures prior to the Organization’s year-end. By conducting significant portions of the audit work at an interim date, the overall work required after year-end is reduced. The Organization’s staff will provide the requested schedules and documents to assist the auditors during any interim audit fieldwork. Throughout the audit process, TCCA will make every effort to provide the schedules, documents, and information requested by the auditors in a timely manner. Person(s) Responsible: Chief Financial Officer, Finance Officer, Assistant Finance Officer Timing for Implementation: June 3, 2025 However, it was discovered that the CFO failed to respond to the audit requests in a timely manner, placing the organization at risk of losing grant funds. This loss would be detrimental to the children, families, and communities served by this organization. Consequently, the CFO was terminated on June 25, 2025.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 573420 2024-001
    Material Weakness
  • 573421 2024-001
    Material Weakness
  • 1149862 2024-001
    Material Weakness
  • 1149863 2024-001
    Material Weakness
  • 1149864 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $5.82M
93.568 Low-Income Home Energy Assistance $3.44M
10.558 Child and Adult Care Food Program $439,225
93.569 Community Services Block Grant $323,344
93.499 Low Income Household Water Assistance Program $88,794