Finding: 2024-003 - Late Completion of the Single Audit and Submission of the Reporting Package and Data Collection Form Finding Type: Noncompliance. Repeat Finding: Yes; prior-year finding 2023-002. Auditor Description of Condition and Effect: The Organization’s Single Audit for the six-month perio...
Finding: 2024-003 - Late Completion of the Single Audit and Submission of the Reporting Package and Data Collection Form Finding Type: Noncompliance. Repeat Finding: Yes; prior-year finding 2023-002. Auditor Description of Condition and Effect: The Organization’s Single Audit for the six-month period ended June 30, 2024, was not completed by the March 31, 2025 deadline. The audit was completed on May 12, 2025, 42 days late; consequently, the reporting package and data collection form were not submitted to the Federal Audit Clearinghouse within the timeframe required by 2 CFR § 200.512(a)(1). The delay resulted from the fiscal year-end change and the absence of a sufficiently detailed transition, closing, reconciliation, and audit-readiness plan. Auditor Recommendation: Management should establish and monitor a formal year-end closing and audit-readiness plan that assigns responsible individuals and interim completion dates for account reconciliations, financial reporting schedules, federal award information, and other audit support. Progress should be monitored, delays addressed promptly, and significant matters communicated to those charged with governance and the auditors sufficiently in advance of the Federal Audit Clearinghouse filing deadline. Management Response and Corrective Action Planned: Management concurs with the finding and recommendation. Now that June 30 is the Organization’s recurring fiscal year-end, management will implement a formal annual closing, audit-readiness, and Federal Audit Clearinghouse submission process as follows: • Maintain a written calendar beginning before fiscal year-end that identifies each close, financial-reporting, Schedule of Expenditures of Federal Awards, audit-support, governance, and Federal Audit Clearinghouse task; the assigned preparer and reviewer; and interim and final due dates. • Complete and independently review account reconciliations, year-end entries, grant schedules, and other requested audit support according to the calendar, with unresolved items tracked in a centralized open-items log. • Meet with the external auditors before year-end to establish the audit timeline and requested-information deadlines, and update the plan promptly when significant transactions, staffing changes, or other risks to timely completion arise. • Monitor progress at least biweekly after year-end. Missed interim dates and unresolved matters that could affect the filing deadline will be escalated to senior management and those charged with governance, together with a recovery plan. • Assign a senior-level management representative to review and certify the data collection form, authorize submission of the reporting package, and verify and retain evidence of Federal Audit Clearinghouse acceptance by the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period, as required by 2 CFR § 200.512(a)(1). Management will retain documentation supporting implementation and will periodically evaluate whether the corrective action is operating as designed.