Audit 380901

Finding 2024-001 - Noncompliance with reporting deadline Criteria Under 2 CFR 200.512(a)–(b), auditees must submit the reporting package and Data Collection Form (DCF) to the Federal Audit Clearinghouse (FAC): 1. Within 30 days after receipt of the auditor’s reports, or 2. Within nine months after the end of the audit period, whichever is earlier. Failure to submit the reporting package within this timeframe constitutes noncompliance with the Uniform Guidance. Condition For this first-time Single Audit, WAVE did not submit the required reporting package, including the DCF, to the FAC within the timeframe established by the Uniform Guidance. The reporting package was submitted after the required due date. Cause Because this was WAVE’s first Single Audit, management was not fully familiar with the Uniform Guidance reporting requirements and associated deadlines. WAVE had not yet developed internal procedures for tracking and completing the federal audit submission process. As a result, the filing deadline was missed. Effect WAVE did not comply with the Uniform Guidance reporting requirements. Untimely filing may affect federal agencies’ access to required audit information for oversight purposes. In addition, because the reporting package was not submitted by the required deadline, the auditee does not meet one of the criteria to be considered a lowrisk auditee in future periods under 2 CFR 200.520. Recommendation We recommend WAVE establish internal controls and written procedures specific to Single Audit reporting requirements. These procedures should include: • Assigning responsibility for preparing and submitting the DCF and reporting package; • Maintaining a compliance calendar for federal filing deadlines; • Reviewing Uniform Guidance requirements applicable to ongoing Single Audits; and • Implementing a secondary review to ensure timely completion of the filing. These steps will help ensure that future reporting packages are submitted within the required timeframe. Views of Responsible Officials Management agrees with the finding. As this was WAVE’s first Single Audit, management is developing written procedures to ensure full understanding of, and compliance with, all Uniform Guidance reporting requirements. WAVE will implement a reporting calendar, designate responsible personnel, and establish review steps to ensure timely submission going forward.