Audit 409160

Federal Agency: Various Assistance Listing Number: Multiple Compliance Requirement: Reporting Finding 2025-001: Submission of the Audit Reporting Package and Data Collection Form (Repeat of Finding 2024-001) Criteria: Per 2 CFR §200.510(b), the auditee must prepare a Schedule of Federal Awards (SEFA) for the period covered by the auditee's financial statements. Per §200.512(a), the SEFA must be submitted to the Federal Audit Clearinghouse (FAC) within the required deadline. Condition: The audit reporting package and data collection form for the year ended September 30, 2025, was not submitted to the FAC within the timeframe as required by the Uniform Guidance. Cause: The delay was due to a lack of capacity in the finance department and not following the year-end closing schedule. Effect: To qualify as a low-risk auditee, 2 CFR section 200.520 requires the audit reporting package and data collection form to be submitted to the FAC by the due date for each of the previous two years. Late filing will result in noncompliance with timely submission of financial information to the grantor agencies. Recommendation: Management should address the lack of capacity in the finance department and monitor the year-end closing schedule for a timely audit reporting package and data collection form to ensure compliance with federal deadlines. Questioned costs: None Responsible Official's Response: We agree with the auditors’ comments, the following action will be taken to address the situation. As Semcac continues to grow and compliance requirements increase, we have evaluated staffing capacity within the Fiscal Department and added a management-level position in fiscal year 2026. Semcac has also contracted with an outsourced accounting firm to strengthen internal controls, improve processes and procedures, support adherence to the year-end closing schedule, and help ensure timely submission of the audit reporting package.