Audit 406261

2025-004 Audit Report Deadline CFDA Title: Airport Improvement Program CFDA Number: 20.106 Federal Agency: Department of Transportation 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 County’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 County was not in compliance with required State and federal audit filing deadlines for fiscal year 2025. Cause: The County was not aware until near completion of the annual financial report process that a federal single audit was required for fiscal year 2025. Due to the timing of this determination and existing audit scheduling commitments related to other federal audits, the audit could not be completed by the required filing deadline. Recommendation: We recommend the County implement procedures to evaluate federal expenditures and single audit requirements earlier in the fiscal year-end reporting process. In addition, management should communicate potential federal audit requirements with the audit firm timely to assist with scheduling and planning procedures necessary to meet required filing deadlines.