Audit 402560

Finding 2024-001 – Late Completion and Submission of Single Audit Reporting Package Federal Program Information Federal Awarding Agency: Various Federal Agencies Assistance Listing Numbers: Various Program Name: Multiple Federal Programs Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria Title 2 U.S. Code of Federal Regulations (CFR) § 200.512(a) requires the auditee to submit the data collection form and reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. In addition, 2 CFR § 200.507 requires the auditee to arrange for the performance of a Single Audit in accordance with Subpart F of Uniform Guidance. Condition The Organization’s Single Audit for the year ended December 31, 2023, was not completed within the required timeframe. As a result, the reporting package and data collection form were submitted late to the Federal Audit Clearinghouse. The audit report due date was September 30, 2024; however, the reporting package was not submitted until March 11, 2025. Questioned Costs None. Context The Organization expended in excess of $750,000 in federal awards during the fiscal year and was therefore subject to the Single Audit requirements under Uniform Guidance. The delay resulted in noncompliance with the federal reporting requirements applicable to Single Audits. Cause Due to staffing capacity constraints, the Organization experienced delays in completing necessary year-end financial closing procedures, which resulted in the reporting package not being submitted within the required deadline. Effect or Potential Effect Failure to complete the Single Audit and submit the reporting package within the required timeframe may result in increased federal oversight, reputational risk, delayed funding decisions, and potential sanctions or restrictions from federal awarding agencies or pass-through entities. Recommendation We recommend that management strengthen its internal controls and monitoring procedures over the financial reporting and Single Audit process to ensure future compliance with Uniform Guidance reporting deadlines. Views of Responsible Officials Management agrees with the finding and has indicated that corrective actions will be implemented to improve the timeliness of the audit process and future FAC submissions.