Audit 401393

FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING 2025-001 – UNTIMELY COMPLETION AND SUBMISSION OF SINGLE AUDIT REPORTING PACKAGE Condition The organization did not complete and submit its Single Audit reporting package within the required nine-month period following fiscal year-end. For example, for the fiscal year ended June 30, 2025, the reporting package was required to be submitted no later than March 31, 2026; however, the audit was not completed and submitted until May 12, 2026. Criteria Under 2 CFR 200.512, the auditee must prepare the financial statements, schedule of expenditures of federal awards, and other required components of the reporting package, and ensure that the Single Audit reporting package is completed and submitted within the earlier of 30 calendar days after receipt of the auditors’ reports or nine months after the end of the audit period. Cause The delay appears to have resulted from inadequate planning and monitoring of the year-end financial reporting and audit process. Contributing factors may have included the absence of a formal closing and audit timeline, unclear assignment of responsibility for key deliverables, delays in preparing supporting schedules, or insufficient oversight of the audit submission process. Effect Failure to complete and submit the Single Audit reporting package within the required timeframe constitutes noncompliance with federal audit submission requirements. This may adversely affect the organization’s standing with federal awarding agencies and pass-through entities, may increase the risk of sanctions or scrutiny related to continued federal funding, and delays the availability of audited financial and compliance information to management, oversight bodies, and other stakeholders. Recommendation Management should implement procedures to help ensure timely completion and submission of future Single Audits. Recommended actions include: •Establishing a formal year-end reporting and audit timeline with interim milestones through final submission. •Assigning specific responsibility for preparation, review, auditor coordination, and submission of the reporting package. •Monitoring progress against deadlines throughout the audit process and elevating delays to appropriate management on a timely basis. •Confirming in advance that all required financial statements, schedules, and supporting documentation will be ready for audit and submission within the applicable deadline. Views of Responsible Officials Management acknowledges the finding and states it will take corrective action to strengthen its year-end reporting and audit monitoring processes to help ensure timely completion and submission of future Single Audits.