Finding 966534 (2023-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-29

AI Summary

  • Core Issue: The Single Audit was not filed on time, missing the March 31, 2024 deadline due to delays in financial data preparation.
  • Impacted Requirements: Non-compliance with 2 CFR section 200.512(a) regarding timely submission of the reporting package to the Federal Audit Clearing House.
  • Recommended Follow-Up: Monthly reconciliation of financial data and continued engagement with accounting consultants to ensure timely and accurate audit submissions.

Finding Text

DATA COLLECTION FORM Statement of Condition: The Single Audit was not filed within 9 months after year end as required by the Federal Audit Clearing House. Criteria: 2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearing house the earlier of 30 calendar days after the reports are received from the auditor or 9 months after the end of the reporting period. Therefore, the June 30, 2023, reporting package deadline was March 31, 2024. Statement of Cause: The cumulative effect of operating without a Chief Financial Officer caused delays in preparing accurate financial data. The Center was only able to engage an accounting consultant intermittingly resulting in delays in providing the financial information for June 30, 2022 audit. As a result the process for the June 30, 2023 audit was delayed causing the audit process to not be able to begin until the prior year’s audit was completed which did not occur until January 2024. Statement of Effect: The Center was not in compliance with federal guidelines. Questioned Costs: None Perspective Information: As part of the audit process, compliance with federal guideline is reviewed for timely submission of the reporting package to the Federal Audit Clearing House. Identification of Repeat Finding: Yes Recommendation: The Center should continue to reconcile financial information on a monthly basis and continue to engage the assistance of the accounting consultant to review year end records to ensure accurate information is available for audit and submission of the reporting package by the deadlines described above. Views of Responsible Officials and Planned Corrective Actions: ECLC now only has 2 employees consisting of the Executive Director and fiscal specialists. ECLC’s CFO resigned in April of 2022 and ECLC has not been able to fill that position since that time. UHY consultants have been obtained Marvh 24, 2023 and they are helping with the fiscal process. ECLC has relinquished its Head Start Grant effective June 30, 2023, and is in the dissolution.

Categories

Reporting

Other Findings in this Audit

  • 390092 2023-003
    Material Weakness Repeat
  • 390093 2023-003
    Material Weakness Repeat
  • 390094 2023-003
    Material Weakness Repeat
  • 390095 2023-003
    Material Weakness Repeat
  • 390096 2023-004
    Material Weakness Repeat
  • 390097 2023-004
    Material Weakness Repeat
  • 390098 2023-004
    Material Weakness Repeat
  • 390099 2023-004
    Material Weakness Repeat
  • 966535 2023-003
    Material Weakness Repeat
  • 966536 2023-003
    Material Weakness Repeat
  • 966537 2023-003
    Material Weakness Repeat
  • 966538 2023-004
    Material Weakness Repeat
  • 966539 2023-004
    Material Weakness Repeat
  • 966540 2023-004
    Material Weakness Repeat
  • 966541 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $55,555
10.558 Child and Adult Care Food Program $1,184