Audit 403114

Finding No. 2024-001 Finding Type: Noncompliance / Significant Deficiency in Internal Control over Compliance Program: Crime Victim Assistance Federal Agency: US Dept of Justice Criteria: In accordance with 2 CFR § 200.512(a), the audit must be completed, and the data collection form and reporting package must be submitted to the Federal Audit Clearinghouse (FAC) within 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, whichever is earlier. Condition: The Organization did not submit its Single Audit reporting package for the fiscal years ended June 30, 2023 & 2024, to the Federal Audit Clearinghouse within nine months of the fiscal year-end. The report, which included the Schedule of Expenditures of Federal Awards (SEFA), was submitted December 11, 2024 which is 255 days late for the June 30, 2023 and is yet to be submitted for the June 30, 2024. Context: The Organization’s financial records were not closed, and the SEFA was not prepared or reconciled to the general ledger by the required deadline, preventing the auditors from completing the audit within the prescribed timeframe. Effect: Late filing of the Single Audit reporting package is a violation of federal regulations and, per 2 CFR § 200.512(b), may result in federal agencies taking action to disallow costs, suspend, or terminate the federal award. Furthermore, it prevents federal agencies from having timely data to conduct oversight. Cause: The Organization experienced turnover in key positions and lacked documented, formalized procedures to ensure the timely preparation of the SEFA and the coordination of the audit timeline. Recommendation: We recommend that the Organization establish a year-end closing schedule to ensure the trial balance is finalized within 60 days of year-end. Additionally, management should establish a checklist for the preparation of the SEFA, including a review of grant agreements for Assistance Listing Numbers (ALNs) and a reconciliation to the general ledger, to ensure timely submission. Views of Responsible Officials: Management agrees with the finding. The Organization has hired new staff, changed accounting systems and is developing a strict month-end and year-end close procedure to ensure timely financial reporting and future compliance.