2023-011 OA Statewide SEFA DOA controls and procedures related to the preparation of the statewide Schedule of Expenditures of Federal Awards (SEFA) were not sufficient; and as a result, a complete and accurate SEFA was not prepared timely for the year ended June 30, 2023. The statewide SEFA reported the state expended approximately $20.9 billion in federal funds in the year ended June 30, 2023. Each state agency and office prepares and submits a SEFA survey to the DOA and the DOA compiles the statewide SEFA. The SEFA reports total expenditures and amounts passed through to subrecipients for each federal program, and is supported by the Notes to the SEFA (Notes). The SEFA is a key component of the annual Single Audit, which is required to be completed no later than 9 months after fiscal year-end (March 31, 2024, for the year ended June 30, 2023). In addition to providing an opinion on the SEFA, the State Auditor's Office uses the SEFA for many critical Single Audit tasks including determining and identifying Type A and large Type B thresholds and programs, determining major federal programs, and ensuring required audit procedures are performed. Untimely SEFA The year ended June 30, 2023, SEFA was not prepared by the DOA until February 28, 2024, 8 months after fiscal year end and 1 month before the Single Audit reporting deadline. Because the DOA prepares the SEFA after the State of Missouri Annual Comprehensive Financial Report (ACFR) draft has been prepared, and the fiscal year 2023 ACFR draft was prepared over 7 months after fiscal year end, the fiscal year 2023 preparation of the SEFA was delayed. The delayed preparation of the SEFA negatively impacted the completion of various Single Audit tasks, and contributed to the delay in issuance of the fiscal year 2023 Single Audit. The DOA has indicated that staff turnover and increased workload in other areas contributed to the delayed SEFA. Regulation 2 CFR 200.512 requires the state to submit its Single Audit report to the Federal Audit Clearinghouse no later than 9 months after the fiscal year-end. SEFA errors The fiscal year ended June 30, 2023, SEFA and Notes included various errors and misstatements including: • The Emergency Solutions Grant Program (Assistance Listing No. 14.231) and the COVID-19 - Emergency Rental Assistance Program (Assistance Listing No. 21.023) were not included in the SEFA. Expenditures for these programs totaled $1,542,983 and $9,514,168, respectively. After we notified the DOA of these errors, the DOA revised the statewide SEFA. • The Unemployment Insurance program (Assistance Listing No. 17.225) expenditures reported in the SEFA were $7,059,661 more than the amount reported in Note 2 - Unemployment Insurance Expenditures. In addition, the Notes did not include the correct program name. After we notified the DOA of these errors, the DOA revised the statewide SEFA and the Notes. • Amounts shown in the "Amount Provided to Subrecipients" column for some programs were overstated because the DOA lacks procedures to ensure amounts transferred from one state agency to another state agency are not reported in this column. For example, the amount reported for the Child Care and Development Block Grant (Assistance Listing No. 93.575) was overstated by $19,486,185, which represents transfers from the Department of Social Services to the Department of Elementary and Secondary Education. Part 3-M-1 of the Compliance Supplement states, "Transfers of federal awards to another component of the same auditee under 2 CFR Part 200, Subpart F, do not constitute a subrecipient or contractor relationship." Since this error did not result in a material misstatement to the SEFA, no correction was made by the DOA. The errors occurred without detection due to (1) staff turnover, (2) inadequate documented procedures for preparing the SEFA, and (3) inadequate review procedures. Conclusions Strong internal control is necessary to ensure the SEFA is prepared timely, accurately, and in compliance with federal requirements. Regulation 2 CFR Section 200.510(b) requires the recipient of federal awards to prepare a SEFA including federal awards expended for each federal program. Regulation 2 CFR Section 200.303(a) requires the non-federal entity to "[e]stablish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Recommendation The OA through the DOA strengthen controls and procedures to prepare a timely and accurate statewide SEFA. Such procedures should provide for proper reporting of subrecipient amounts. Auditee's Response We agree with the auditor's finding. Our Corrective Action Plan includes our planned actions to address the finding.
2023-011 OA Statewide SEFA DOA controls and procedures related to the preparation of the statewide Schedule of Expenditures of Federal Awards (SEFA) were not sufficient; and as a result, a complete and accurate SEFA was not prepared timely for the year ended June 30, 2023. The statewide SEFA reported the state expended approximately $20.9 billion in federal funds in the year ended June 30, 2023. Each state agency and office prepares and submits a SEFA survey to the DOA and the DOA compiles the statewide SEFA. The SEFA reports total expenditures and amounts passed through to subrecipients for each federal program, and is supported by the Notes to the SEFA (Notes). The SEFA is a key component of the annual Single Audit, which is required to be completed no later than 9 months after fiscal year-end (March 31, 2024, for the year ended June 30, 2023). In addition to providing an opinion on the SEFA, the State Auditor's Office uses the SEFA for many critical Single Audit tasks including determining and identifying Type A and large Type B thresholds and programs, determining major federal programs, and ensuring required audit procedures are performed. Untimely SEFA The year ended June 30, 2023, SEFA was not prepared by the DOA until February 28, 2024, 8 months after fiscal year end and 1 month before the Single Audit reporting deadline. Because the DOA prepares the SEFA after the State of Missouri Annual Comprehensive Financial Report (ACFR) draft has been prepared, and the fiscal year 2023 ACFR draft was prepared over 7 months after fiscal year end, the fiscal year 2023 preparation of the SEFA was delayed. The delayed preparation of the SEFA negatively impacted the completion of various Single Audit tasks, and contributed to the delay in issuance of the fiscal year 2023 Single Audit. The DOA has indicated that staff turnover and increased workload in other areas contributed to the delayed SEFA. Regulation 2 CFR 200.512 requires the state to submit its Single Audit report to the Federal Audit Clearinghouse no later than 9 months after the fiscal year-end. SEFA errors The fiscal year ended June 30, 2023, SEFA and Notes included various errors and misstatements including: • The Emergency Solutions Grant Program (Assistance Listing No. 14.231) and the COVID-19 - Emergency Rental Assistance Program (Assistance Listing No. 21.023) were not included in the SEFA. Expenditures for these programs totaled $1,542,983 and $9,514,168, respectively. After we notified the DOA of these errors, the DOA revised the statewide SEFA. • The Unemployment Insurance program (Assistance Listing No. 17.225) expenditures reported in the SEFA were $7,059,661 more than the amount reported in Note 2 - Unemployment Insurance Expenditures. In addition, the Notes did not include the correct program name. After we notified the DOA of these errors, the DOA revised the statewide SEFA and the Notes. • Amounts shown in the "Amount Provided to Subrecipients" column for some programs were overstated because the DOA lacks procedures to ensure amounts transferred from one state agency to another state agency are not reported in this column. For example, the amount reported for the Child Care and Development Block Grant (Assistance Listing No. 93.575) was overstated by $19,486,185, which represents transfers from the Department of Social Services to the Department of Elementary and Secondary Education. Part 3-M-1 of the Compliance Supplement states, "Transfers of federal awards to another component of the same auditee under 2 CFR Part 200, Subpart F, do not constitute a subrecipient or contractor relationship." Since this error did not result in a material misstatement to the SEFA, no correction was made by the DOA. The errors occurred without detection due to (1) staff turnover, (2) inadequate documented procedures for preparing the SEFA, and (3) inadequate review procedures. Conclusions Strong internal control is necessary to ensure the SEFA is prepared timely, accurately, and in compliance with federal requirements. Regulation 2 CFR Section 200.510(b) requires the recipient of federal awards to prepare a SEFA including federal awards expended for each federal program. Regulation 2 CFR Section 200.303(a) requires the non-federal entity to "[e]stablish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Recommendation The OA through the DOA strengthen controls and procedures to prepare a timely and accurate statewide SEFA. Such procedures should provide for proper reporting of subrecipient amounts. Auditee's Response We agree with the auditor's finding. Our Corrective Action Plan includes our planned actions to address the finding.
2023-011 OA Statewide SEFA DOA controls and procedures related to the preparation of the statewide Schedule of Expenditures of Federal Awards (SEFA) were not sufficient; and as a result, a complete and accurate SEFA was not prepared timely for the year ended June 30, 2023. The statewide SEFA reported the state expended approximately $20.9 billion in federal funds in the year ended June 30, 2023. Each state agency and office prepares and submits a SEFA survey to the DOA and the DOA compiles the statewide SEFA. The SEFA reports total expenditures and amounts passed through to subrecipients for each federal program, and is supported by the Notes to the SEFA (Notes). The SEFA is a key component of the annual Single Audit, which is required to be completed no later than 9 months after fiscal year-end (March 31, 2024, for the year ended June 30, 2023). In addition to providing an opinion on the SEFA, the State Auditor's Office uses the SEFA for many critical Single Audit tasks including determining and identifying Type A and large Type B thresholds and programs, determining major federal programs, and ensuring required audit procedures are performed. Untimely SEFA The year ended June 30, 2023, SEFA was not prepared by the DOA until February 28, 2024, 8 months after fiscal year end and 1 month before the Single Audit reporting deadline. Because the DOA prepares the SEFA after the State of Missouri Annual Comprehensive Financial Report (ACFR) draft has been prepared, and the fiscal year 2023 ACFR draft was prepared over 7 months after fiscal year end, the fiscal year 2023 preparation of the SEFA was delayed. The delayed preparation of the SEFA negatively impacted the completion of various Single Audit tasks, and contributed to the delay in issuance of the fiscal year 2023 Single Audit. The DOA has indicated that staff turnover and increased workload in other areas contributed to the delayed SEFA. Regulation 2 CFR 200.512 requires the state to submit its Single Audit report to the Federal Audit Clearinghouse no later than 9 months after the fiscal year-end. SEFA errors The fiscal year ended June 30, 2023, SEFA and Notes included various errors and misstatements including: • The Emergency Solutions Grant Program (Assistance Listing No. 14.231) and the COVID-19 - Emergency Rental Assistance Program (Assistance Listing No. 21.023) were not included in the SEFA. Expenditures for these programs totaled $1,542,983 and $9,514,168, respectively. After we notified the DOA of these errors, the DOA revised the statewide SEFA. • The Unemployment Insurance program (Assistance Listing No. 17.225) expenditures reported in the SEFA were $7,059,661 more than the amount reported in Note 2 - Unemployment Insurance Expenditures. In addition, the Notes did not include the correct program name. After we notified the DOA of these errors, the DOA revised the statewide SEFA and the Notes. • Amounts shown in the "Amount Provided to Subrecipients" column for some programs were overstated because the DOA lacks procedures to ensure amounts transferred from one state agency to another state agency are not reported in this column. For example, the amount reported for the Child Care and Development Block Grant (Assistance Listing No. 93.575) was overstated by $19,486,185, which represents transfers from the Department of Social Services to the Department of Elementary and Secondary Education. Part 3-M-1 of the Compliance Supplement states, "Transfers of federal awards to another component of the same auditee under 2 CFR Part 200, Subpart F, do not constitute a subrecipient or contractor relationship." Since this error did not result in a material misstatement to the SEFA, no correction was made by the DOA. The errors occurred without detection due to (1) staff turnover, (2) inadequate documented procedures for preparing the SEFA, and (3) inadequate review procedures. Conclusions Strong internal control is necessary to ensure the SEFA is prepared timely, accurately, and in compliance with federal requirements. Regulation 2 CFR Section 200.510(b) requires the recipient of federal awards to prepare a SEFA including federal awards expended for each federal program. Regulation 2 CFR Section 200.303(a) requires the non-federal entity to "[e]stablish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Recommendation The OA through the DOA strengthen controls and procedures to prepare a timely and accurate statewide SEFA. Such procedures should provide for proper reporting of subrecipient amounts. Auditee's Response We agree with the auditor's finding. Our Corrective Action Plan includes our planned actions to address the finding.
2023-011 OA Statewide SEFA DOA controls and procedures related to the preparation of the statewide Schedule of Expenditures of Federal Awards (SEFA) were not sufficient; and as a result, a complete and accurate SEFA was not prepared timely for the year ended June 30, 2023. The statewide SEFA reported the state expended approximately $20.9 billion in federal funds in the year ended June 30, 2023. Each state agency and office prepares and submits a SEFA survey to the DOA and the DOA compiles the statewide SEFA. The SEFA reports total expenditures and amounts passed through to subrecipients for each federal program, and is supported by the Notes to the SEFA (Notes). The SEFA is a key component of the annual Single Audit, which is required to be completed no later than 9 months after fiscal year-end (March 31, 2024, for the year ended June 30, 2023). In addition to providing an opinion on the SEFA, the State Auditor's Office uses the SEFA for many critical Single Audit tasks including determining and identifying Type A and large Type B thresholds and programs, determining major federal programs, and ensuring required audit procedures are performed. Untimely SEFA The year ended June 30, 2023, SEFA was not prepared by the DOA until February 28, 2024, 8 months after fiscal year end and 1 month before the Single Audit reporting deadline. Because the DOA prepares the SEFA after the State of Missouri Annual Comprehensive Financial Report (ACFR) draft has been prepared, and the fiscal year 2023 ACFR draft was prepared over 7 months after fiscal year end, the fiscal year 2023 preparation of the SEFA was delayed. The delayed preparation of the SEFA negatively impacted the completion of various Single Audit tasks, and contributed to the delay in issuance of the fiscal year 2023 Single Audit. The DOA has indicated that staff turnover and increased workload in other areas contributed to the delayed SEFA. Regulation 2 CFR 200.512 requires the state to submit its Single Audit report to the Federal Audit Clearinghouse no later than 9 months after the fiscal year-end. SEFA errors The fiscal year ended June 30, 2023, SEFA and Notes included various errors and misstatements including: • The Emergency Solutions Grant Program (Assistance Listing No. 14.231) and the COVID-19 - Emergency Rental Assistance Program (Assistance Listing No. 21.023) were not included in the SEFA. Expenditures for these programs totaled $1,542,983 and $9,514,168, respectively. After we notified the DOA of these errors, the DOA revised the statewide SEFA. • The Unemployment Insurance program (Assistance Listing No. 17.225) expenditures reported in the SEFA were $7,059,661 more than the amount reported in Note 2 - Unemployment Insurance Expenditures. In addition, the Notes did not include the correct program name. After we notified the DOA of these errors, the DOA revised the statewide SEFA and the Notes. • Amounts shown in the "Amount Provided to Subrecipients" column for some programs were overstated because the DOA lacks procedures to ensure amounts transferred from one state agency to another state agency are not reported in this column. For example, the amount reported for the Child Care and Development Block Grant (Assistance Listing No. 93.575) was overstated by $19,486,185, which represents transfers from the Department of Social Services to the Department of Elementary and Secondary Education. Part 3-M-1 of the Compliance Supplement states, "Transfers of federal awards to another component of the same auditee under 2 CFR Part 200, Subpart F, do not constitute a subrecipient or contractor relationship." Since this error did not result in a material misstatement to the SEFA, no correction was made by the DOA. The errors occurred without detection due to (1) staff turnover, (2) inadequate documented procedures for preparing the SEFA, and (3) inadequate review procedures. Conclusions Strong internal control is necessary to ensure the SEFA is prepared timely, accurately, and in compliance with federal requirements. Regulation 2 CFR Section 200.510(b) requires the recipient of federal awards to prepare a SEFA including federal awards expended for each federal program. Regulation 2 CFR Section 200.303(a) requires the non-federal entity to "[e]stablish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Recommendation The OA through the DOA strengthen controls and procedures to prepare a timely and accurate statewide SEFA. Such procedures should provide for proper reporting of subrecipient amounts. Auditee's Response We agree with the auditor's finding. Our Corrective Action Plan includes our planned actions to address the finding.
Significant Deficiency and Noncompliance Over Reporting Repeat Finding: No Condition: BCI’s single audit report and the data collection form were not completed within nine months after the end of the audit period. Criteria: Per 2 CFR 200.512: Report Submission. (a) General. (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. Cause: BCI’s fiscal year 2023, financial statements and Single Audit was not completed within the nine months after the end of the audit period. BCI did not have the policies and resources in place to complete a single audit in a timely manner. Effect: Failure to submit the reporting package and data collection form within the required timeframe results in non-compliance with the Uniform Guidance reporting requirements. Questioned Costs: None. Recommendation: We recommend that BCI creates policies and procedures to ensure that audits are started and completed in a timely fashion so the reporting package submission to the Federal government can be made in accordance with Federal guidelines. We also recommend that individuals responsible for administering Federal assistance programs with BCI receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the Corrective Action Plan. Auditor’s Conclusion: Finding remains as stated.
Significant Deficiency and Noncompliance Over Reporting Repeat Finding: No Condition: BCI’s single audit report and the data collection form were not completed within nine months after the end of the audit period. Criteria: Per 2 CFR 200.512: Report Submission. (a) General. (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. Cause: BCI’s fiscal year 2023, financial statements and Single Audit was not completed within the nine months after the end of the audit period. BCI did not have the policies and resources in place to complete a single audit in a timely manner. Effect: Failure to submit the reporting package and data collection form within the required timeframe results in non-compliance with the Uniform Guidance reporting requirements. Questioned Costs: None. Recommendation: We recommend that BCI creates policies and procedures to ensure that audits are started and completed in a timely fashion so the reporting package submission to the Federal government can be made in accordance with Federal guidelines. We also recommend that individuals responsible for administering Federal assistance programs with BCI receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the Corrective Action Plan. Auditor’s Conclusion: Finding remains as stated.
Significant Deficiency and Noncompliance Over Reporting Repeat Finding: No Condition: BCI’s single audit report and the data collection form were not completed within nine months after the end of the audit period. Criteria: Per 2 CFR 200.512: Report Submission. (a) General. (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. Cause: BCI’s fiscal year 2023, financial statements and Single Audit was not completed within the nine months after the end of the audit period. BCI did not have the policies and resources in place to complete a single audit in a timely manner. Effect: Failure to submit the reporting package and data collection form within the required timeframe results in non-compliance with the Uniform Guidance reporting requirements. Questioned Costs: None. Recommendation: We recommend that BCI creates policies and procedures to ensure that audits are started and completed in a timely fashion so the reporting package submission to the Federal government can be made in accordance with Federal guidelines. We also recommend that individuals responsible for administering Federal assistance programs with BCI receive training in grant administration. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the Corrective Action Plan. Auditor’s Conclusion: Finding remains as stated.
2023-004 Audit Report Submission to the Federal Government Material Weakness in Internal Control over Compliance Criteria Single Audits, 2 CFR Part 200 Subpart F 200,512(a)(1)- Report Submission, are required to be submitted within the earlier of 30 days of the receipt of the auditor's report or nine months after the end of the audit period. Condition The Joint Powers Board did not submit the audit report in the nine-month time frame as required by the Uniform Guidance. Cause The Joint Powers Board has limitied resources to perform timely submisssions to contract with a independent CPA to perform the audit. The audit has started late, and not reasonable to complete the Federal Clearinghouse deadline. Effect Noncompliance with the federal requirements to submit an auidt report nine-months after year-end. Recommendation We recommend that the Joint Powers Board submit audit reports in compliance with 2 CFR 200.512(a)(1). Views of Responsible Officials and Planned Corrective Actions Please see the last page of this report for the written response from the Board.
Criteria: Code of Federal Regulations (CFR), Title 2, Part 200 Section 200.512(a)(1) requires Single Audit reports to be submitted within the earlier of 30 days after receipt of the audit by the agency, or nine months after the end of the audit period. Condition: The June 30, 2023 audit report was not submitted on or before its deadline. Cause: The Council lacks an effective internal control structure over accounting records and financial reporting. Effect: The Single Audit reporting package was not submitted to the Federal Audit Clearinghouse by the federally required deadline. Non-compliance with the reporting requirements is a violation of federal grants' terms and conditions.
Criteria: Code of Federal Regulations (CFR), Title 2, Part 200 Section 200.512(a)(1) requires Single Audit reports to be submitted within the earlier of 30 days after receipt of the audit by the agency, or nine months after the end of the audit period. Condition: The June 30, 2023 audit report was not submitted on or before its deadline. Cause: The Council lacks an effective internal control structure over accounting records and financial reporting. Effect: The Single Audit reporting package was not submitted to the Federal Audit Clearinghouse by the federally required deadline. Non-compliance with the reporting requirements is a violation of federal grants' terms and conditions.
Criteria: Code of Federal Regulations (CFR), Title 2, Part 200 Section 200.512(a)(1) requires Single Audit reports to be submitted within the earlier of 30 days after receipt of the audit by the agency, or nine months after the end of the audit period. Condition: The June 30, 2023 audit report was not submitted on or before its deadline. Cause: The Council lacks an effective internal control structure over accounting records and financial reporting. Effect: The Single Audit reporting package was not submitted to the Federal Audit Clearinghouse by the federally required deadline. Non-compliance with the reporting requirements is a violation of federal grants' terms and conditions.
Finding 2023-004: Data Collection Form Filing Federal Program Title: Department of Housing and Urban Development Assistance Listing No. 14.267 – Continuum of Care; Department of Housing and Urban Development Assistance Listing No. 14.231 – COVID-19 – Emergency Solution Grants Program Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 nine months after the end of the audit period. Condition: The data collection form for the year ended June 30, 2023, will be filed after the March 31, 2024, deadline, making it a late submission. Cause and Effect: The single audit was not completed as of the submission deadline. Late filing will result in the Agency not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Questioned Costs: None identified. Context: None Repeat Finding: No. Recommendation: We recommend that the Agency implement processes and controls to allow for a more timely audit. Views of Responsible Officials: Management agrees with this finding. See corrective action plan.
Finding 2023-004: Data Collection Form Filing Federal Program Title: Department of Housing and Urban Development Assistance Listing No. 14.267 – Continuum of Care; Department of Housing and Urban Development Assistance Listing No. 14.231 – COVID-19 – Emergency Solution Grants Program Criteria: 2 CFR 200.512(a) requires that the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 nine months after the end of the audit period. Condition: The data collection form for the year ended June 30, 2023, will be filed after the March 31, 2024, deadline, making it a late submission. Cause and Effect: The single audit was not completed as of the submission deadline. Late filing will result in the Agency not meeting the low-risk auditee criteria for the audit of the year ended June 30, 2024. Questioned Costs: None identified. Context: None Repeat Finding: No. Recommendation: We recommend that the Agency implement processes and controls to allow for a more timely audit. Views of Responsible Officials: Management agrees with this finding. See corrective action plan.
Section III – Federal Award Findings and Questioned Costs 2023-001 Late submission of June 30, 2022 audit report – Federal Filing Federal Program: ALN 93.575, 93.332, and 14.241 Criteria: UWBC is required to file its audit report each year to the Federal Audit Clearinghouse within nine months after the end of fiscal year in accordance with 34 CFR 200.512. Condition: UWBC did not file its June 30, 2022 report to the Federal Audit Clearinghouse within nine months after the end of fiscal year. Cause: UWBC experienced employee turnover in key managerial and accounting roles causing delays in close out and completion of the audit. Effect: UWBC did not meet the submission requirements as set forth by 34 CFR 200.512. Recommendation: We recommend UWBC closely monitors this important submission requirement to avoid missing the deadline. Management’s Response: Management will take corrective action to make sure the audit report is submitted to the Federal Audit Clearinghouse in compliance with the submission requirements.
Section III – Federal Award Findings and Questioned Costs 2023-001 Late submission of June 30, 2022 audit report – Federal Filing Federal Program: ALN 93.575, 93.332, and 14.241 Criteria: UWBC is required to file its audit report each year to the Federal Audit Clearinghouse within nine months after the end of fiscal year in accordance with 34 CFR 200.512. Condition: UWBC did not file its June 30, 2022 report to the Federal Audit Clearinghouse within nine months after the end of fiscal year. Cause: UWBC experienced employee turnover in key managerial and accounting roles causing delays in close out and completion of the audit. Effect: UWBC did not meet the submission requirements as set forth by 34 CFR 200.512. Recommendation: We recommend UWBC closely monitors this important submission requirement to avoid missing the deadline. Management’s Response: Management will take corrective action to make sure the audit report is submitted to the Federal Audit Clearinghouse in compliance with the submission requirements.
Section III – Federal Award Findings and Questioned Costs 2023-001 Late submission of June 30, 2022 audit report – Federal Filing Federal Program: ALN 93.575, 93.332, and 14.241 Criteria: UWBC is required to file its audit report each year to the Federal Audit Clearinghouse within nine months after the end of fiscal year in accordance with 34 CFR 200.512. Condition: UWBC did not file its June 30, 2022 report to the Federal Audit Clearinghouse within nine months after the end of fiscal year. Cause: UWBC experienced employee turnover in key managerial and accounting roles causing delays in close out and completion of the audit. Effect: UWBC did not meet the submission requirements as set forth by 34 CFR 200.512. Recommendation: We recommend UWBC closely monitors this important submission requirement to avoid missing the deadline. Management’s Response: Management will take corrective action to make sure the audit report is submitted to the Federal Audit Clearinghouse in compliance with the submission requirements.
Section III – Federal Award Findings and Questioned Costs 2023-001 Late submission of June 30, 2022 audit report – Federal Filing Federal Program: ALN 93.575, 93.332, and 14.241 Criteria: UWBC is required to file its audit report each year to the Federal Audit Clearinghouse within nine months after the end of fiscal year in accordance with 34 CFR 200.512. Condition: UWBC did not file its June 30, 2022 report to the Federal Audit Clearinghouse within nine months after the end of fiscal year. Cause: UWBC experienced employee turnover in key managerial and accounting roles causing delays in close out and completion of the audit. Effect: UWBC did not meet the submission requirements as set forth by 34 CFR 200.512. Recommendation: We recommend UWBC closely monitors this important submission requirement to avoid missing the deadline. Management’s Response: Management will take corrective action to make sure the audit report is submitted to the Federal Audit Clearinghouse in compliance with the submission requirements.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
All Federal Programs Finding 2023-003 (Repeat finding 2022-005) Material Weakness, Material Noncompliance – Reporting Criteria – Per 2 CFR Part 200, Subpart 7 (2 CFR 200.512): (a) General. (1) The audit must be completed and the data collection form and reporting package described must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The data collection form for the audit year June 30, 2023 was not submitted to the Federal Audit Clearinghouse on a timely basis. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2023 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Effect – By not submitting information the Federal Audit Clearing house on a timely basis, the Organization may be at risk for losing federal funding. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Recommendation – We recommend management ensure that the data collection form is submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or 9 months after the end of the audit period. Management’s Response – Management understands that the data collection was not submitted within 9 months of June 30th year-end. Procedures will be implemented to make sure the audit is completed before the 9-month deadline. Data collection will then be uploaded to the federal clearing house before the 9-month deadline or within 30 days of the audit report being issued.
2023-003 The audit report and data collection form not submitted as required Federal Program: WIOA Youth Program and Community Development Block CFDA Number: 17.259 Compliance Requirement: Reporting Repeat Finding: Yes Type of Finding: Noncompliance, Significant Deficiency Questioned Costs: None Criteria: In accordance with Title 2 CFR § 200.512 (a), the audit package and the data collection forms shall be submitted 30 days after receipts of the Auditors’ report, or nine months after the end of the fiscal year end date, whichever comes first. Condition: The Single Audit Report for the year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within the required period. Cause: The organization experienced staffing shortages which led to Management not providing the necessary documents needed for the audit in a timely manner. Effect: Access, Inc. is not in compliance with the requirement of Title 2 § CFR 200.512 (a). Recommendation: Access, Inc’s management should ensure the audit is completed within the required time period and submitted to the Federal Audit Clearinghouse timely. Management’s Response: Access, Inc. concurs with the finding and has begun implementing corrective actions.
2023-001 Timely Submission of Single Audit Report Program Name/ Assistance Listing Number: 93. 959 Block Grants for Prevention and Treatment of Substance Abuse Federal Agency: Department of Health and Human Services Federal Award Identification: Unknown Type of Finding: Material Weakness Compliance Requirement: Reporting Criteria: According to the OMB Compliance Supplement, Part 6 and 2 CFR 200.512 (a)(1), non-federal entities that expend $750,000 or more in federal awards during a fiscal year are required to submit a complete and accurate Data Collection Form (DCF) and a Single Audit report package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. The DCF is a critical element in ensuring transparency and accountability for the use of federal funds. Condition: The Organization did not submit the required DCF for the fiscal year ended June 30, 2023, by the required deadline. Cause of Condition: The delay in submission was caused by the changes in the executive director position: the retirement of the executive director, the appointment of a transitory executive director, and the subsequent passing of the transitory executive director while looking for a new executive director. Effect: Failure to submit the DCF on time resulted in noncompliance with federal regulations, which could lead to the potential withholding of future federal funding or other sanctions. It also undermines the Organization's compliance status and may affect the entity's standing with grantor agencies and other stakeholders. Questioned Cost: Not quantifiable. Recommendation: We recommend that the Organization implement stronger internal controls and procedures to ensure timely submission of the DCF. This could include designating a responsible party for tracking and submitting the DCF, creating a timeline and checklist for required submissions, and conducting periodic reviews to ensure compliance with deadlines. Additionally, the organization should provide training to relevant staff on the importance of meeting federal compliance requirements. Description of the Nature and Extent of Issues Reported: We consider the following materiality for consideration of material noncompliance for the major program 93.959 at 5% of the total awards expended amounting to $51,253. View of Responsible Official: Management agrees with the finding and will implement corrective action.
Finding 2023-003 Reporting – Data Collection Form and Reporting Package (Significant Deficiency) Criteria: Pursuant to 2 CFR Section 200.512(a) of the Uniform Guidance, the auditee is responsible for submitting its data collection form and reporting package, including the auditor's reports within the earlier of 30 days after receipt of the auditor's reports or nine months after the end of the audit period to the Federal Audit Clearinghouse ("FAC"). BCS did not submit its reporting package to the FAC timely. Condition: The single audit of BCS’s federal award for the year ended June 30, 2023, was not completed within the nine months following the period-end. Cause: The delay in the issuance of the single audit report for the year ended June 30, 2023, was to the late issuance of the consolidated and combined financial statements as noted in Finding 2023-001. Effect: As a result of the late financial statement issuance, BCS did not submit its single audit reporting package within the required timeframe. As such, BCS did not comply with the regulatory requirements. Questioned Costs: None identified. Identified as a Repeat Finding: Yes. Recommendation: We recommend that BCS enhance its closing and reporting process to ensure the reports required by the Uniform Guidance is submitted by the aforementioned deadline. Views of Responsible Officials: See management’s response and corrective action plan.
Finding 2023-003 Reporting – Data Collection Form and Reporting Package (Significant Deficiency) Criteria: Pursuant to 2 CFR Section 200.512(a) of the Uniform Guidance, the auditee is responsible for submitting its data collection form and reporting package, including the auditor's reports within the earlier of 30 days after receipt of the auditor's reports or nine months after the end of the audit period to the Federal Audit Clearinghouse ("FAC"). BCS did not submit its reporting package to the FAC timely. Condition: The single audit of BCS’s federal award for the year ended June 30, 2023, was not completed within the nine months following the period-end. Cause: The delay in the issuance of the single audit report for the year ended June 30, 2023, was to the late issuance of the consolidated and combined financial statements as noted in Finding 2023-001. Effect: As a result of the late financial statement issuance, BCS did not submit its single audit reporting package within the required timeframe. As such, BCS did not comply with the regulatory requirements. Questioned Costs: None identified. Identified as a Repeat Finding: Yes. Recommendation: We recommend that BCS enhance its closing and reporting process to ensure the reports required by the Uniform Guidance is submitted by the aforementioned deadline. Views of Responsible Officials: See management’s response and corrective action plan.
Finding 2023-003 Reporting – Data Collection Form and Reporting Package (Significant Deficiency) Criteria: Pursuant to 2 CFR Section 200.512(a) of the Uniform Guidance, the auditee is responsible for submitting its data collection form and reporting package, including the auditor's reports within the earlier of 30 days after receipt of the auditor's reports or nine months after the end of the audit period to the Federal Audit Clearinghouse ("FAC"). BCS did not submit its reporting package to the FAC timely. Condition: The single audit of BCS’s federal award for the year ended June 30, 2023, was not completed within the nine months following the period-end. Cause: The delay in the issuance of the single audit report for the year ended June 30, 2023, was to the late issuance of the consolidated and combined financial statements as noted in Finding 2023-001. Effect: As a result of the late financial statement issuance, BCS did not submit its single audit reporting package within the required timeframe. As such, BCS did not comply with the regulatory requirements. Questioned Costs: None identified. Identified as a Repeat Finding: Yes. Recommendation: We recommend that BCS enhance its closing and reporting process to ensure the reports required by the Uniform Guidance is submitted by the aforementioned deadline. Views of Responsible Officials: See management’s response and corrective action plan.
Finding 2023-003 Reporting – Data Collection Form and Reporting Package (Significant Deficiency) Criteria: Pursuant to 2 CFR Section 200.512(a) of the Uniform Guidance, the auditee is responsible for submitting its data collection form and reporting package, including the auditor's reports within the earlier of 30 days after receipt of the auditor's reports or nine months after the end of the audit period to the Federal Audit Clearinghouse ("FAC"). BCS did not submit its reporting package to the FAC timely. Condition: The single audit of BCS’s federal award for the year ended June 30, 2023, was not completed within the nine months following the period-end. Cause: The delay in the issuance of the single audit report for the year ended June 30, 2023, was to the late issuance of the consolidated and combined financial statements as noted in Finding 2023-001. Effect: As a result of the late financial statement issuance, BCS did not submit its single audit reporting package within the required timeframe. As such, BCS did not comply with the regulatory requirements. Questioned Costs: None identified. Identified as a Repeat Finding: Yes. Recommendation: We recommend that BCS enhance its closing and reporting process to ensure the reports required by the Uniform Guidance is submitted by the aforementioned deadline. Views of Responsible Officials: See management’s response and corrective action plan.
Finding 2023-003 Reporting – Data Collection Form and Reporting Package (Significant Deficiency) Criteria: Pursuant to 2 CFR Section 200.512(a) of the Uniform Guidance, the auditee is responsible for submitting its data collection form and reporting package, including the auditor's reports within the earlier of 30 days after receipt of the auditor's reports or nine months after the end of the audit period to the Federal Audit Clearinghouse ("FAC"). BCS did not submit its reporting package to the FAC timely. Condition: The single audit of BCS’s federal award for the year ended June 30, 2023, was not completed within the nine months following the period-end. Cause: The delay in the issuance of the single audit report for the year ended June 30, 2023, was to the late issuance of the consolidated and combined financial statements as noted in Finding 2023-001. Effect: As a result of the late financial statement issuance, BCS did not submit its single audit reporting package within the required timeframe. As such, BCS did not comply with the regulatory requirements. Questioned Costs: None identified. Identified as a Repeat Finding: Yes. Recommendation: We recommend that BCS enhance its closing and reporting process to ensure the reports required by the Uniform Guidance is submitted by the aforementioned deadline. Views of Responsible Officials: See management’s response and corrective action plan.
Condition: The audit for June 30, 2023, was not summited within the required timeline. Criteria: 2 CFR 200.512(a)(1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Condition: The audit for June 30, 2023, was not summited within the required timeline. Criteria: 2 CFR 200.512(a)(1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Condition: The audit for June 30, 2023, was not summited within the required timeline. Criteria: 2 CFR 200.512(a)(1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Condition: The audit for June 30, 2023, was not summited within the required timeline. Criteria: 2 CFR 200.512(a)(1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Condition: The audit for June 30, 2023, was not summited within the required timeline. Criteria: 2 CFR 200.512(a)(1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Condition: The audit for June 30, 2023, was not summited within the required timeline. Criteria: 2 CFR 200.512(a)(1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Condition: The audit for June 30, 2023, was not summited within the required timeline. Criteria: 2 CFR 200.512(a)(1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Condition: The audit for June 30, 2023, was not summited within the required timeline. Criteria: 2 CFR 200.512(a)(1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Condition: The audit for June 30, 2023, was not summited within the required timeline. Criteria: 2 CFR 200.512(a)(1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Condition: The audit for June 30, 2023, was not summited within the required timeline. Criteria: 2 CFR 200.512(a)(1) The audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause: The primary cause attributed to the reporting finding regarding late submissions can be identified as a deficiency in personnel resources within FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) The Corporation has experienced challenges in adequately staffing its finance and accounting department, thereby impeding its ability to fulfill reporting requirements in a timely and accurate manner. Effect: Late submissions of required financial reports can result in heightened scrutiny from Federal awarding agencies. The Corporation could face delays in receiving future funding until compliance issues are resolved, impacting its financial stability and mission delivery. Recommendation: FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) should establish clear protocols and timelines for the preparation and submission of financial reports to ensure compliance with Federal awarding agency requirements. This includes recruiting more personnel, defining roles and responsibilities within the finance and accounting team and setting deadlines well in advance of the reporting due dates.
Finding 2023-003 Deadline for Federal Single Audit – Reporting - Noncompliance and Material Weakness in Internal Control Over Compliance Agency U.S. Department of the Treasury Assistance Listing Numbers (ALN) 21.027 Program Name COVID-19 - Coronavirus Local Fiscal Recovery Fund Award Year FY 2023 Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic Development Pass-Through Entity Identifying Number AK0049 Criteria or Specific Requirement 2 CFR 200.512, Report Submission, establishes that the audit must be completed and the data collection form and reporting package submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receipt of the auditor's report or 9 months after the end of the audit period. Condition The City did not comply with the required submission date of the data collection form and reporting package to the FAC for the fiscal year ended June 30, 2023. Cause The City did not have controls in place to ensure the audit was completed timely so that the reporting package could be submitted to the FAC within the required timeframe. Effect or Potential Effect The City is not compliant with 2 CFR 200.512. The City could be exposed to a reduction or elimination of funds by the Federal awarding agencies. Questioned costs Not applicable. Context This is a condition identified per review of the City's compliance with the specified requirements. Identification as a repeat finding Yes. Finding 2022-004 Noncompliance and Material Weakness in Internal Control over Compliance. Recommendation We recommend the City establish controls to ensure the audit is completed timely and the reporting package is submitted to the FAC within the required timeframe. Views of Responsible Officials Management agrees with this finding. Management has developed internal deadlines to ensure the FY24 financial statements will be completed within the appropriate reporting deadlines.
Finding 2023-002: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: All Federal Programs Federal Assistance Listing Number: 14.850, 14.871 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 200.512, the Authority is required to submit the Data Collection Form and the rest of the reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Per 2 CFR Section 902.33, the Authority is required to submit its audited Financial Data Schedule (FDS) and audited financial statements no later than 9 months after the PHA’s fiscal year end. Condition: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Context: PHAs are required to submit an audited FDS to FAC and REAC within 9 months of fiscal year end. Effect: The Authority did not submit its audited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-002: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: All Federal Programs Federal Assistance Listing Number: 14.850, 14.871 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 200.512, the Authority is required to submit the Data Collection Form and the rest of the reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Per 2 CFR Section 902.33, the Authority is required to submit its audited Financial Data Schedule (FDS) and audited financial statements no later than 9 months after the PHA’s fiscal year end. Condition: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Context: PHAs are required to submit an audited FDS to FAC and REAC within 9 months of fiscal year end. Effect: The Authority did not submit its audited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-003 Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition, Context for Evaluation, and Effect The Single Audit reporting package and related data collection form for the year ended June 30, 2023 was not submitted within nine months after the end of the audit period. Questioned Costs Not applicable. Cause Internal controls over year-end closing were not in place to ensure timely filing. Repeat Finding Repeat of finding 2022-004. Recommendation We recommend that the Organization review the internal controls in place over year-end closing to ensure the data collection form and reporting package can be submitted timely to the Federal Audit Clearinghouse. Views of Responsible Officials of Auditee Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2023-003 Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition, Context for Evaluation, and Effect The Single Audit reporting package and related data collection form for the year ended June 30, 2023 was not submitted within nine months after the end of the audit period. Questioned Costs Not applicable. Cause Internal controls over year-end closing were not in place to ensure timely filing. Repeat Finding Repeat of finding 2022-004. Recommendation We recommend that the Organization review the internal controls in place over year-end closing to ensure the data collection form and reporting package can be submitted timely to the Federal Audit Clearinghouse. Views of Responsible Officials of Auditee Management agrees with the finding and has provided the accompanying corrective action plan.