Audit 401407

Type: Audited Financial Statements Late Filing – Noncompliance and Significant Deficiency in Controls Over Compliance Criteria / Requirement: The Organization must ensure that financial information is filed by the reporting due dates pursuant to the requirements of its funders and the Federal Audit Clearinghouse. Condition / Context: The Organization did not file the audited financial statement and related reports before their specified due dates. Management did not meet the year-end reporting due dates required by funders and regulations. Cause: The filings were not performed timely, in part, due to the delay in the issuance of the compliance supplement which required the audit to start late. In addition, several funders reported a materially different funding mix on audit confirmation responses than originally documented in the underlying agreements. This caused the major program determination to be significantly delayed while the federal expenditures were confirmed with the funders reconciled to the records. Effect: The year-end audited financial statements were not timely completed and filed by the regulatory due dates. Questioned Costs: None Recommendation: The Organization should review the program requirements and implement contingency plans to ensure that year-end reporting requirements are met. The Organization personnel should communicate with funders throughout the year to ensure that the federal programs are properly identified and any changes in funding mix are received and documented contemporaneously. This will allow the Organization to provide timely and accurate information for the annual audit. Management’s Response: Management concurs with the finding and has defined corrective action to address it.