Audit 404066

2025-003 Audit Report Deadline CFDA Title: Clean Water State Revolving Fund CFDA Number: 66.458 Federal Award Number: FY2025 Federal Agency: United States Environmental Protection Agency Pass-through Entity: Montana Dept. of Natural Resources & Conservation Condition: Montana local governments with a June 30 fiscal year-end are required to submit audited financial statements to the Montana Department of Administration and the Federal Audit Clearinghouse by March 31 following year-end. The Town’s fiscal year 2025 audit was not completed and submitted until after the required deadline. Context: During audit procedures, we reviewed applicable State of Montana and federal audit submission requirements and noted the fiscal year 2025 audit report was submitted after the required filing deadline. Criteria: Montana Administrative Rule 2.4.411 and the Uniform Guidance require audits to be completed and submitted within nine months following fiscal year-end. Effect: The Town was not in compliance with required State and federal audit filing deadlines for fiscal year 2025. Cause: Although the Town completed its year-end closing procedures timely, audit requests and supporting documentation were not provided to the auditors in a timely enough manner to allow the audit to be completed by the required filing deadline. Recommendation: We recommend the Town continue strengthening year-end closing and audit preparation procedures to ensure requested documentation is completed and provided timely so future audits can be completed and submitted in accordance with State and federal requirements.