Finding Text
2022-002 Single Audit Submission
Criteria: The Organization’s single audit was due by July 31, 2023.
Condition: The Organization’s single audit was not submitted by the due date.
Cause: The Organization initiated the audit engagement with the auditor on June 19, 2023, which did
not allow adequate time to complete the audit; in addition, the books and records were not in an
organized or accurate manner, which required extensive additional procedures and adjustments to the
accounts.
Effect: The Organization was not able to timely provide its audited financial statements to its regulators
and grantor agencies. As a result, the Texas Department of Agriculture has determined the Organization
to be seriously deficient in the management of its programs, and has stated that if the Organization does
not fully and permanently correct the deficiencies, it will terminate its agreement with the Organization.Recommendation: The Organization should employ or hire a knowledgeable and experienced accountant
to maintain its books and records, and implement appropriate controls and accounting processes to
ensure the accuracy of its financial statements and the timely filing of its reporting requirements.
Views of Responsible Officials and Planned Corrective Actions: The Program Coordinator fell ill during the
time of the audit’s due date and was unable to effectively participate until having recovered later in the
process. The Organization plans to hire a skilled accountant to manage its books and records going
forward.