Audit 391232

Finding No. 2025-001 Type of Finding: Compliance; Other Matter; Significant Deficiency in Internal Control Compliance Requirement: Reporting – Submission to the Federal Audit Clearinghouse Assistance Listing: 93.045 – Special Programs for the Aging, Title III, Part C, Nutrition Services (Aging Cluster) Questioned Costs: None Criteria Uniform Guidance requires non-federal entities that expend $750,000 or more in federal awards in a fiscal year to have a Single Audit conducted and to submit the data collection form (DCF) and Single Audit reporting package to the Federal Audit Clearinghouse (FAC) by the earlier of 30 days after receipt of the auditor’s reports or nine months after the end of the auditee’s fiscal year, in accordance with 2 CFR 200.512. Condition For the year ended June 30, 2024, the Organization was required to submit its Single Audit reporting package and DCF to the FAC. The Organization did not submit the 2024 Single Audit reporting package and DCF to the FAC. In addition, management represented that the Organization has not submitted Single Audit reporting packages or DCFs for prior years in which Single Audits were performed. Cause The Organization did not have formal policies and procedures to ensure that required Single Audit filings were completed, including monitoring of FAC submission and acceptance. Responsibility for preparing and submitting the FAC filing was not clearly assigned, and management was not aware of the FAC submission requirement. Effect As a result, the federal government and pass-through entities did not have access to the Organization’s Single Audit reports through the FAC for the current year and prior years in which Single Audits were required. This could affect federal agencies and pass-through entities’ ability to monitor the Organization’s use of federal funds and may impact future funding decisions. Recommendation We recommend that the Organization:  Develop and document written policies and procedures to ensure timely submission of the Single Audit reporting package and DCF to the FAC.  Assign responsibility for preparing and submitting the FAC filing to a specific position, with clear timelines and review procedures.  Establish a monitoring control to verify that each year’s Single Audit reporting package and DCF are successfully submitted to and accepted by the FAC.  Consult with the FAC and applicable federal agencies or pass-through entities regarding the appropriate corrective actions for prior-year audits that were not submitted. Views of Responsible Officials Management agrees with the finding. The Organization is in the process of developing and implementing written procedures to ensure that Single Audit reporting packages and DCFs are submitted to the FAC timely and is working with the FAC and applicable agencies to address prior-year submissions.