Audit 391109

2023-001 - Late Submission of the Single Audit - (Material Weakness) - Repeated (Prior Year Finding 2022-002) Condition: The SF-SAC Single Audit Data Collection Form for the year ended June 30, 2023 was not submitted to the Federal Audit Clearinghouse by the required deadline by the DSAL. Criteria: Per Uniform Guidance 2 CFR 200, the single audit reporting package and the data collection form (SF-SAC) must be submitted to the Federal Audit Clearinghouse within 30 calendar days after receipt of the auditor's report(s), or 9 months after the end of the audit period, whichever comes first. Establish controls to reduce risk of late submission of the single audit report. Cause: All required information required for Single Audit was not available to complete within the required timeframe. Effect: Late filing with Federal Clearinghouse affect the determination of DSAL being considered a "low risk auditee" pursuant to OMB guidance. Auditor's Recommendation: The DSAL should finalize financial statements and send them to auditors for audit within a reasonable amount of time after year end. Management's Response: Management acknowledges the finding related to the late submission of the SF-SAC Single Audit Data Collection Form for the year ended June 30, 2023. The delay was primarily attributable to a period of significant organizational transition, including major management changes and a downsizing of the organization, which substantially constrained internal capacity during the audit and reporting period. As a result, certain required information necessary to complete the Single Audit was not available within the required time frame. Management recognizes the importance of timely Single Audit submission and the impact of late filing on the organization’s low-risk auditee status. To remediate this issue, management has implemented corrective actions to strengthen planning and oversight of the audit process, including establishing earlier internal deadlines for year-end close activities, improving cross-functional coordination for audit deliverables, and engaging auditors earlier following year end. Management has also implemented a formal tracking process to monitor Single Audit milestones and submission deadlines to ensure timely filing with the Federal Audit Clearing house going forward. Estimated Completion Date: Management expects these corrective actions to be effective beginning with the single audit for the fiscal year ending June 30, 2024. Responsible Party: Accounting Manager