Agenda - 2-17-14 Reg. Meeting - Laserfiche WebLink

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044 JOHNSTON- LEE - HARNETT COMMUNITY ACTION, INCORPORATED Schedule of Findings and Questioned Costs for the year ended June 30, 2013 III. Findings and Questioned Costs Related to the Audit of Major Federal Programs U.S. Department of Agriculture 2013 -SA -1 Reporting 10.780 - ARRA Community Facilities Loan Condition: The Organization did not submit a quarterly financial report in a timely manner and in accordance with USDA loan terms and conditions. Criteria: The Organization is required to submit quarterly financial reports to the USDA office of Rural Development within 30 days of each reporting period end. The Organization submitted the report 44 days after the end of the reporting period. Cause: Management failed to recognize the reporting deadline. Effect: The Organization was not in compliance with the Reporting requirements of the loan agreement. Questioned Costs: None Recommendation: We recommend that management implement a control to ensure that reporting deadlines are met within the prescribed reporting timeframes. View of Responsible Officials and Planned Corrective Actions: The Organization has implemented a plan to ensure that quarterly financial reports are submitted within the appropriate reporting timeframes. IV. Summary of Prior Audit Findings and Questioned Costs U.S. Department of Agriculture FINDING 2012 -SA -1: 10.558 - Child and Adult Food Care Program Condition: Expenditures in the amount of $62,485 were recorded in the program that did not relate to program operations or administration. Recommendation: The auditors recommended that the Organization enhance its internal controls and processes to ensure that grant funds expended are only for allowable costs and activities. Current Status: The Organization concurred with the audit finding and the proposed audit entry to move the questioned expenditures back to the appropriate program. No similar findings were noted in the 2013 audit. 17