2022-001 ? Noncompliance with Single Audit Submission Requirements Criteria ? Per Uniform Guidance 2 CFR 200.512(a), the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report(s), or 9 months after the end of the fiscal year ?whichever comes first. Condition ? The Organization did not submit their Single Audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for FY 2021. Cause ? Inadequate monitoring of the final audit required submission. Normally the management company relies on the auditor to meet the final requirement; however in this case, the company changed auditors. The focus of the management company is heavily on HUD submissions and compliance and not necessarily on submission to FAC Effect ? Noncompliance with Single Audit Requirements Questioned Costs ? None Recommendation ? Organization should ensure that future single audits are submitted timely and ensure that fiscal year 2021 single audit is submitted.
2022-001 ? Noncompliance with Single Audit Submission Requirements Criteria ? Per Uniform Guidance 2 CFR 200.512(a), the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report(s), or 9 months after the end of the fiscal year ?whichever comes first. Condition ? The Organization did not submit their Single Audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for FY 2021. Cause ? Inadequate monitoring of the final audit required submission. Normally the management company relies on the auditor to meet the final requirement; however in this case, the company changed auditors. The focus of the management company is heavily on HUD submissions and compliance and not necessarily on submission to FAC Effect ? Noncompliance with Single Audit Requirements Questioned Costs ? None Recommendation ? Organization should ensure that future single audits are submitted timely and ensure that fiscal year 2021 single audit is submitted.
2022-001 ? Noncompliance with Single Audit Submission Requirements Criteria ? Per Uniform Guidance 2 CFR 200.512(a), the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report(s), or 9 months after the end of the fiscal year ?whichever comes first. Condition ? The Organization did not submit their Single Audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for FY 2021. Cause ? Inadequate monitoring of the final audit required submission. Normally the management company relies on the auditor to meet the final requirement; however in this case, the company changed auditors. The focus of the management company is heavily on HUD submissions and compliance and not necessarily on submission to FAC Effect ? Noncompliance with Single Audit Requirements Questioned Costs ? None Recommendation ? Organization should ensure that future single audits are submitted timely and ensure that fiscal year 2021 single audit is submitted.
2022-001 ? Noncompliance with Single Audit Submission Requirements Criteria ? Per Uniform Guidance 2 CFR 200.512(a), the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report(s), or 9 months after the end of the fiscal year ?whichever comes first. Condition ? The Organization did not submit their Single Audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for FY 2021. Cause ? Inadequate monitoring of the final audit required submission. Normally the management company relies on the auditor to meet the final requirement; however in this case, the company changed auditors. The focus of the management company is heavily on HUD submissions and compliance and not necessarily on submission to FAC Effect ? Noncompliance with Single Audit Requirements Questioned Costs ? None Recommendation ? Organization should ensure that future single audits are submitted timely and ensure that fiscal year 2021 single audit is submitted.
2022-001 ? Noncompliance with Single Audit Submission Requirements Criteria ? Per Uniform Guidance 2 CFR 200.512(a), the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report(s), or 9 months after the end of the fiscal year ?whichever comes first. Condition ? The Organization did not submit their Single Audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for FY 2021. Cause ? Inadequate monitoring of the final audit required submission. Normally the management company relies on the auditor to meet the final requirement; however in this case, the company changed auditors. The focus of the management company is heavily on HUD submissions and compliance and not necessarily on submission to FAC Effect ? Noncompliance with Single Audit Requirements Questioned Costs ? None Recommendation ? Organization should ensure that future single audits are submitted timely and ensure that fiscal year 2021 single audit is submitted.
2022-001 ? Noncompliance with Single Audit Submission Requirements Criteria ? Per Uniform Guidance 2 CFR 200.512(a), the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report(s), or 9 months after the end of the fiscal year ?whichever comes first. Condition ? The Organization did not submit their Single Audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for FY 2021. Cause ? Inadequate monitoring of the final audit required submission. Normally the management company relies on the auditor to meet the final requirement; however in this case, the company changed auditors. The focus of the management company is heavily on HUD submissions and compliance and not necessarily on submission to FAC Effect ? Noncompliance with Single Audit Requirements Questioned Costs ? None Recommendation ? Organization should ensure that future single audits are submitted timely and ensure that fiscal year 2021 single audit is submitted.
2022-001 ? Noncompliance with Single Audit Submission Requirements Criteria ? Per Uniform Guidance 2 CFR 200.512(a), the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report(s), or 9 months after the end of the fiscal year ?whichever comes first. Condition ? The Organization did not submit their Single Audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for FY 2021. Cause ? Inadequate monitoring of the final audit required submission. Normally the management company relies on the auditor to meet the final requirement; however in this case, the company changed auditors. The focus of the management company is heavily on HUD submissions and compliance and not necessarily on submission to FAC Effect ? Noncompliance with Single Audit Requirements Questioned Costs ? None Recommendation ? Organization should ensure that future single audits are submitted timely and ensure that fiscal year 2021 single audit is submitted.
Submission of Fiscal Year 2021 Single Audit Finding 2022-003 Condition: The Authority did not officially certify and submit its fiscal year 2021 single audit until July 6, 2022. Criteria: Per 2 CFR Part 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. Cause: The Authority did not officially certify the 2021 single audit until July 6, 2022. Effect: The Authority is noncompliant with 2 CFR 200. Directive: We direct the Authority to implement procedures to ensure that the fiscal year 2022 is certified within the required nine-month deadline. Management?s Response--Corrective Action Plan: Contact person is Oliver Lindsay, Interim Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Executive Director at the time of the audit last year was new in their role and was managing many tasks and organizational updates. They are no longer employed at TCATA and the current Interim Director and contracted accounting firm are working with the auditor to ensure timely filing.
Late Submission of Data Collection Form ? Board 2022-002 CRITERIA: In accordance with Uniform Guidance 2 CFR 200.512(a), the audit package and data collection form shall be submitted 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first. CONDITION: The data collection form in connection with the prior year audit was not filed within 9 months after the fiscal year end. CAUSE: Management did not have procedures in place to ensure the timely filing of the data collection form to the Federal Audit Clearinghouse. EFFECT: Late filing will result in noncompliance with timely submission of financial information to the grantor agencies. RECOMMENDATION: Management should evaluate the current procedures in place to ensure the timely filing of the data collection form to the Federal Audit Clearinghouse.
Late Submission of Data Collection Form ? Board 2022-002 CRITERIA: In accordance with Uniform Guidance 2 CFR 200.512(a), the audit package and data collection form shall be submitted 30 days after receipt of the auditor?s report, or 9 months after the end of the fiscal year, whichever comes first. CONDITION: The data collection form in connection with the prior year audit was not filed within 9 months after the fiscal year end. CAUSE: Management did not have procedures in place to ensure the timely filing of the data collection form to the Federal Audit Clearinghouse. EFFECT: Late filing will result in noncompliance with timely submission of financial information to the grantor agencies. RECOMMENDATION: Management should evaluate the current procedures in place to ensure the timely filing of the data collection form to the Federal Audit Clearinghouse.
Finding 2022-002: Filing of Single Audit Report, impacts all federal programs Criteria: Pursuant to the Office of Management and Budget (OMB) 2 CFR section 200.512(a) Report submission, ?The audit must be completed and the data collection form?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.? Condition: The Organization did not timely submit the Single Audit Reporting Package for the fiscal year ended September 30, 2021 within nine months after the end of audit period. Cause: As there is a reporting difference between when you recognize the provider relief funds in the financial statements versus the schedule of expenditures of federal awards, it was unclear whether a single audit was required. Effect or Potential Effect: Failure to file the required Single Audit Reporting Package timely could result in the loss of Federal funding. This impacts all of the federal programs. Questioned Cost: None Recommendation: We recommend the Single Audit Reporting related to the fiscal year ended September 30, 2021 single audit be completed and data collection form submitted as soon as possible so the Organization can file any required Single Audit Reporting going forward in a timely manner. View of Responsible Officials and Planned Corrective Actions: Agree. The fiscal year end September 30, 2021 audit was delayed as it was unclear if a single audit was required. The Organization will file the Single Audit Reporting related to the fiscal year end September 30, 2021, and does not expect delays to continue for the fiscal year ended September 30, 2022.
Finding 2022-002: Filing of Single Audit Report, impacts all federal programs Criteria: Pursuant to the Office of Management and Budget (OMB) 2 CFR section 200.512(a) Report submission, ?The audit must be completed and the data collection form?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.? Condition: The Organization did not timely submit the Single Audit Reporting Package for the fiscal year ended September 30, 2021 within nine months after the end of audit period. Cause: As there is a reporting difference between when you recognize the provider relief funds in the financial statements versus the schedule of expenditures of federal awards, it was unclear whether a single audit was required. Effect or Potential Effect: Failure to file the required Single Audit Reporting Package timely could result in the loss of Federal funding. This impacts all of the federal programs. Questioned Cost: None Recommendation: We recommend the Single Audit Reporting related to the fiscal year ended September 30, 2021 single audit be completed and data collection form submitted as soon as possible so the Organization can file any required Single Audit Reporting going forward in a timely manner. View of Responsible Officials and Planned Corrective Actions: Agree. The fiscal year end September 30, 2021 audit was delayed as it was unclear if a single audit was required. The Organization will file the Single Audit Reporting related to the fiscal year end September 30, 2021, and does not expect delays to continue for the fiscal year ended September 30, 2022.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Reference Number: 2022-01 Finding: Single Audit Data Collection Form Not Filed by Due Date Category of Finding: Reporting Condition: The data collection form for the Single Audit ended September 30, 2022, was not submitted to the Federal Clearing House by June 30, 2023. The data collection form for the Single Audit ended September 30, 2021 was not submitted to the Federal Audit Clearinghouse by June 30, 2022. Criteria: 2 CFR section 200.512 (b) provides for a form, referred to as the data collection form, to be prepared at the completion of each audit and submitted by the auditee to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period. Cause: The audit report for the year ended September 30, 2022 was not issued prior to the June 30, 2023 submission deadline. The Single Audit for the year ended September 30, 2021 was not submitted by the deadline. Therefore, the data collection forms required at audit completion was not filed by the due dates. Effect: Levi Towers, Inc. (the “Project”) has not met the reporting requirement related to timely submission of the data collection form required for a Single Audit. Therefore, per 2 CFR section 200.520, the Project will not meet the low-risk auditee criteria for further Single Audits that requires submission of the data collection form and reporting package by the due date for each of the two preceding audit years. Questioned Costs: NoneRecommendation: We recommend the Project develop specific procedures to ensure that the audit report is received prior to the June 30 the reporting deadline. Management Response: The Data Collection Form will be filed when the audit is complete.
I NOTED THAT THE HCTC DID NOT SUBMIT THEIR AUDIT WITHIN THE REQUIRED 9 MONTH TIMEFRAME OF YEAR END. PER 2CFR SECTION 200.512, THE HCTC MUST SUBMIT THEIR AUDIT WITHIN 9 MONTHS OF THEIR FISCAL YEAR END. NO QUESTIONED COSTS. THE NATIVE VILLAGE WAS STILL ADDRESSING COVID RELATED DELAYS. MANAGEMENT IS AWARE OF THE REQUIREMENT AND HAS STARTED TO PREPARE FOR THE 2023 AUDIT IN ORDER TO SUBMIT IT TIMELY.
Finding 2022-002 Late Reporting and Noncompliance with Reporting Requirements Federal Agencies: U.S. Department of the Treasury Federal Programs: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 21.027 Award Numbers: SLFRP1590 Award Years: 2021 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Uniform Guidance requires that the reporting package be submitted within the earlier of 9 months after year end or 30 days after the report issuance in accordance with the provisions of 2 CFR part 200, subpart F, section 200.512. Condition and Context: The Village did not adhere to the Uniform Guidance requirement of submitted the reporting package within the earlier of 30 days after the receipt of the audit report, or nine months after year end of the audit period. Cause: Lack of internal controls over Uniform Guidance reporting requirements. Effect: The Village was not in compliance with reporting requirements. Questioned Costs: None. Repeat Finding: This is a repeat finding of 2021-003 Recommendation: We recommend that management comply with the Uniform Guidance reporting requirements. Management’s Response: Management concurs with this finding, see Corrective Action Plan.
2022-004 All Federal Programs - Compliance - Data Collection Form Criteria: The audit package and the data collection form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first, in accordance with the regulation found in the Uniform Guidance 2 CFR 200.512(a). Condition Found: For the fiscal year ended September 30, 2021, the Village did not submit the data collection form to the Federal Clearinghouse by the required due date of June 30, 2022, in accordance with the federal requirements. Cause: The Village fell behind in completing its financial reporting duties due in large part to the declaration of the COVID-19 pandemic. The Village had to spend time addressing issues related to the pandemic and operations while only limited personnel were available. As such, financial reporting fell behind. Effect: The Village is not in compliance with federal requirements. Questioned Costs/Basis: N/A Context: One out of one required submissions for FY 2021 and future submissions applicable to FY 2022. Repeat Finding: No Recommendation: We recommend the Village submit the data collection form within the time frame required by the Uniform Guidance. View of Responsible Officials: See Corrective Action Plan.
2022-004 All Federal Programs - Compliance - Data Collection Form Criteria: The audit package and the data collection form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first, in accordance with the regulation found in the Uniform Guidance 2 CFR 200.512(a). Condition Found: For the fiscal year ended September 30, 2021, the Village did not submit the data collection form to the Federal Clearinghouse by the required due date of June 30, 2022, in accordance with the federal requirements. Cause: The Village fell behind in completing its financial reporting duties due in large part to the declaration of the COVID-19 pandemic. The Village had to spend time addressing issues related to the pandemic and operations while only limited personnel were available. As such, financial reporting fell behind. Effect: The Village is not in compliance with federal requirements. Questioned Costs/Basis: N/A Context: One out of one required submissions for FY 2021 and future submissions applicable to FY 2022. Repeat Finding: No Recommendation: We recommend the Village submit the data collection form within the time frame required by the Uniform Guidance. View of Responsible Officials: See Corrective Action Plan.
2022-004 All Federal Programs - Compliance - Data Collection Form Criteria: The audit package and the data collection form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first, in accordance with the regulation found in the Uniform Guidance 2 CFR 200.512(a). Condition Found: For the fiscal year ended September 30, 2021, the Village did not submit the data collection form to the Federal Clearinghouse by the required due date of June 30, 2022, in accordance with the federal requirements. Cause: The Village fell behind in completing its financial reporting duties due in large part to the declaration of the COVID-19 pandemic. The Village had to spend time addressing issues related to the pandemic and operations while only limited personnel were available. As such, financial reporting fell behind. Effect: The Village is not in compliance with federal requirements. Questioned Costs/Basis: N/A Context: One out of one required submissions for FY 2021 and future submissions applicable to FY 2022. Repeat Finding: No Recommendation: We recommend the Village submit the data collection form within the time frame required by the Uniform Guidance. View of Responsible Officials: See Corrective Action Plan.
2022-004 All Federal Programs - Compliance - Data Collection Form Criteria: The audit package and the data collection form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first, in accordance with the regulation found in the Uniform Guidance 2 CFR 200.512(a). Condition Found: For the fiscal year ended September 30, 2021, the Village did not submit the data collection form to the Federal Clearinghouse by the required due date of June 30, 2022, in accordance with the federal requirements. Cause: The Village fell behind in completing its financial reporting duties due in large part to the declaration of the COVID-19 pandemic. The Village had to spend time addressing issues related to the pandemic and operations while only limited personnel were available. As such, financial reporting fell behind. Effect: The Village is not in compliance with federal requirements. Questioned Costs/Basis: N/A Context: One out of one required submissions for FY 2021 and future submissions applicable to FY 2022. Repeat Finding: No Recommendation: We recommend the Village submit the data collection form within the time frame required by the Uniform Guidance. View of Responsible Officials: See Corrective Action Plan.
2022-004 All Federal Programs - Compliance - Data Collection Form Criteria: The audit package and the data collection form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first, in accordance with the regulation found in the Uniform Guidance 2 CFR 200.512(a). Condition Found: For the fiscal year ended September 30, 2021, the Village did not submit the data collection form to the Federal Clearinghouse by the required due date of June 30, 2022, in accordance with the federal requirements. Cause: The Village fell behind in completing its financial reporting duties due in large part to the declaration of the COVID-19 pandemic. The Village had to spend time addressing issues related to the pandemic and operations while only limited personnel were available. As such, financial reporting fell behind. Effect: The Village is not in compliance with federal requirements. Questioned Costs/Basis: N/A Context: One out of one required submissions for FY 2021 and future submissions applicable to FY 2022. Repeat Finding: No Recommendation: We recommend the Village submit the data collection form within the time frame required by the Uniform Guidance. View of Responsible Officials: See Corrective Action Plan.
2022-004 All Federal Programs - Compliance - Data Collection Form Criteria: The audit package and the data collection form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first, in accordance with the regulation found in the Uniform Guidance 2 CFR 200.512(a). Condition Found: For the fiscal year ended September 30, 2021, the Village did not submit the data collection form to the Federal Clearinghouse by the required due date of June 30, 2022, in accordance with the federal requirements. Cause: The Village fell behind in completing its financial reporting duties due in large part to the declaration of the COVID-19 pandemic. The Village had to spend time addressing issues related to the pandemic and operations while only limited personnel were available. As such, financial reporting fell behind. Effect: The Village is not in compliance with federal requirements. Questioned Costs/Basis: N/A Context: One out of one required submissions for FY 2021 and future submissions applicable to FY 2022. Repeat Finding: No Recommendation: We recommend the Village submit the data collection form within the time frame required by the Uniform Guidance. View of Responsible Officials: See Corrective Action Plan.
2022-004 All Federal Programs - Compliance - Data Collection Form Criteria: The audit package and the data collection form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first, in accordance with the regulation found in the Uniform Guidance 2 CFR 200.512(a). Condition Found: For the fiscal year ended September 30, 2021, the Village did not submit the data collection form to the Federal Clearinghouse by the required due date of June 30, 2022, in accordance with the federal requirements. Cause: The Village fell behind in completing its financial reporting duties due in large part to the declaration of the COVID-19 pandemic. The Village had to spend time addressing issues related to the pandemic and operations while only limited personnel were available. As such, financial reporting fell behind. Effect: The Village is not in compliance with federal requirements. Questioned Costs/Basis: N/A Context: One out of one required submissions for FY 2021 and future submissions applicable to FY 2022. Repeat Finding: No Recommendation: We recommend the Village submit the data collection form within the time frame required by the Uniform Guidance. View of Responsible Officials: See Corrective Action Plan.
Finding Number: 2022-005 Prior Year Finding Number: 2021-004 Compliance Requirement: Data Collection Form and Single Audit Reporting Package Program: Community Development Block Grants/State’s Program And Non-Entitlement Grants In Hawaii (Community Development Block Grant – Disaster Recovery Assistance Grant) AL #: 14.228 Program: Emergency Rental Assistance (ERA) Program AL #: 21.023 Program: Disaster Grants – Public Assistance – (Presidentially Declared Disasters) AL #: 97.036 Criteria – The Uniform Guidance in 2 CFR Section 200.512, Report Submission, establishes that the audit shall be completed and the data collection form and reporting package shall be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receipt of the auditor’s report or nine (9) months after the end of the audit period unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Condition – The Authority did not comply with the required submission date of the data collection form and reporting package to the F AC for the fiscal year ended September 30, 2022. Questioned Costs – Not applicable. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Effect – The Authority could be exposed to a reduction or elimination of funds by the Federal awarding agencies. Cause – The Authority did not have the necessary resources to facilitate and ensure that the reporting package was submitted to the FAC within the required timeframe. Recommendation – We recommend that the Authority enhance its staffing levels and controls to ensure the reporting package is submitted to the FAC annually and within the required timeframe. Views of Responsible Officials – The Authority concurs with the auditor’s findings and recommendations. The planned corrective action is presented in the Authority’s Corrective Action Plan, attached is Appendix B to the Single Audit report.
Finding Number: 2022-005 Prior Year Finding Number: 2021-004 Compliance Requirement: Data Collection Form and Single Audit Reporting Package Program: Community Development Block Grants/State’s Program And Non-Entitlement Grants In Hawaii (Community Development Block Grant – Disaster Recovery Assistance Grant) AL #: 14.228 Program: Emergency Rental Assistance (ERA) Program AL #: 21.023 Program: Disaster Grants – Public Assistance – (Presidentially Declared Disasters) AL #: 97.036 Criteria – The Uniform Guidance in 2 CFR Section 200.512, Report Submission, establishes that the audit shall be completed and the data collection form and reporting package shall be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receipt of the auditor’s report or nine (9) months after the end of the audit period unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Condition – The Authority did not comply with the required submission date of the data collection form and reporting package to the F AC for the fiscal year ended September 30, 2022. Questioned Costs – Not applicable. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Effect – The Authority could be exposed to a reduction or elimination of funds by the Federal awarding agencies. Cause – The Authority did not have the necessary resources to facilitate and ensure that the reporting package was submitted to the FAC within the required timeframe. Recommendation – We recommend that the Authority enhance its staffing levels and controls to ensure the reporting package is submitted to the FAC annually and within the required timeframe. Views of Responsible Officials – The Authority concurs with the auditor’s findings and recommendations. The planned corrective action is presented in the Authority’s Corrective Action Plan, attached is Appendix B to the Single Audit report.
Finding Number: 2022-005 Prior Year Finding Number: 2021-004 Compliance Requirement: Data Collection Form and Single Audit Reporting Package Program: Community Development Block Grants/State’s Program And Non-Entitlement Grants In Hawaii (Community Development Block Grant – Disaster Recovery Assistance Grant) AL #: 14.228 Program: Emergency Rental Assistance (ERA) Program AL #: 21.023 Program: Disaster Grants – Public Assistance – (Presidentially Declared Disasters) AL #: 97.036 Criteria – The Uniform Guidance in 2 CFR Section 200.512, Report Submission, establishes that the audit shall be completed and the data collection form and reporting package shall be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receipt of the auditor’s report or nine (9) months after the end of the audit period unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Condition – The Authority did not comply with the required submission date of the data collection form and reporting package to the F AC for the fiscal year ended September 30, 2022. Questioned Costs – Not applicable. Context – This is a condition identified per review of the Authority’s compliance with the specified requirements. Effect – The Authority could be exposed to a reduction or elimination of funds by the Federal awarding agencies. Cause – The Authority did not have the necessary resources to facilitate and ensure that the reporting package was submitted to the FAC within the required timeframe. Recommendation – We recommend that the Authority enhance its staffing levels and controls to ensure the reporting package is submitted to the FAC annually and within the required timeframe. Views of Responsible Officials – The Authority concurs with the auditor’s findings and recommendations. The planned corrective action is presented in the Authority’s Corrective Action Plan, attached is Appendix B to the Single Audit report.
Finding 2022-002 – Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. The data elements and format must be approved by OMB and include all required elements. Condition: The Authority failed to timely submit the data collection form or audit reporting package to the Federal Audit Clearinghouse for the period ended September 30, 2022. Cause: The Authority did not meet the submission date of June 30, 2023 for the September 30, 2022 audit. Effect: The Authority is considered a high-risk auditee. This classification can impact current and future grants. Questioned Costs: None reported Recommendation: It is recommended the Authority ensure timely and accurate submissions of the audit reporting package to the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Actions: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2022-002 – Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. The data elements and format must be approved by OMB and include all required elements. Condition: The Authority failed to timely submit the data collection form or audit reporting package to the Federal Audit Clearinghouse for the period ended September 30, 2022. Cause: The Authority did not meet the submission date of June 30, 2023 for the September 30, 2022 audit. Effect: The Authority is considered a high-risk auditee. This classification can impact current and future grants. Questioned Costs: None reported Recommendation: It is recommended the Authority ensure timely and accurate submissions of the audit reporting package to the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Actions: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2022-002 – Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. The data elements and format must be approved by OMB and include all required elements. Condition: The Authority failed to timely submit the data collection form or audit reporting package to the Federal Audit Clearinghouse for the period ended September 30, 2022. Cause: The Authority did not meet the submission date of June 30, 2023 for the September 30, 2022 audit. Effect: The Authority is considered a high-risk auditee. This classification can impact current and future grants. Questioned Costs: None reported Recommendation: It is recommended the Authority ensure timely and accurate submissions of the audit reporting package to the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Actions: See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2022-002 – Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. The data elements and format must be approved by OMB and include all required elements. Condition: The Authority failed to timely submit the data collection form or audit reporting package to the Federal Audit Clearinghouse for the period ended September 30, 2022. Cause: The Authority did not meet the submission date of June 30, 2023 for the September 30, 2022 audit. Effect: The Authority is considered a high-risk auditee. This classification can impact current and future grants. Questioned Costs: None reported Recommendation: It is recommended the Authority ensure timely and accurate submissions of the audit reporting package to the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Actions: See Management’s View and Corrective Action Plan included at the end of the report.
I NOTED THAT THE IVC DID NOT SUBMIT THEIR AUDIT WITHIN THE REQUIRED 9 MONTH TIMEFRAM OF YEAR END. PER 2CFR, SECTION 200.512, THE IVC MUST SUBMIT THEIR AUDIT WITHIN 9 MONTHS OF THEIR FISCAL YEAR END. NO QUESTIONED COSTS. THE NATIVE VILLAGE WAS ADDRESSING COVID RELATED DELAYS. MANAGEMENT IS AWARE OF THE REQUIREMENT AND HAS STARTED TO PREPARE FOR THE 2023 AUDIT IN ORDER TO SUBMIT IT TIMELY. THIS WAS NOT A REPEAT FINDING.
Noncompliance with Laws and Regulations. Criteria – Under 2 CFR 200.512, auditee must submit single audit data collection and reporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of auditor’s report or nine months after the end of audit period. Condition – Accounting records were not complete and not readily available to schedule the audit. Also, major health challenges to the Executive Director family member, and audit firm availability contributed to the scheduling delays. The single audit reporting package was submitted twelve months after the June 30, 2023, due date. Context – Management is responsible for reviewing accounting data for making necessary adjustments, and preparation of financial statements for timely audit engagement and submission to the Federal Audit Clearinghouse. Cause – this is the first Single Audit for the Organization, experienced turnover of key staff within the accounting department and their lack of understanding of the extent of Single Audit, and major health challenges to the Executive Director family member. Recommendation – We recommend that the Organization obtain appropriate experienced accounting staff, implement systems and procedures to ensure timely completion of the Single Audit and the submission of the reporting package to the Federal Clearinghouse. View of Responsible Officials and Corrective Action Plan – This is the first Single Audit for our Organization. To ensure that the Organization complies with the laws and regulations of the Single Audit, the CFO will track, review, and verify all federal and non-federal awards. The CFO will also review the closing process of the financial statements and make adjustments that are required to finalize them. The CFO will ensure that the Organization submits timely single audit data collection and reporting package to the Federal Audit Clearinghouse.
Finding Type - Material weakness relative to timely reporting of the schedule of expenditures of federal awards ("SEFA") and associated data collection form on reporting for single audits. Criteria - Per 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. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with§ 200.514. Condition - The data collection form was not submitted within the required time as required by 2 CFR 200.512. Context - In fiscal year 2022, the Organization had $1,631,922 in expenditures under various federal awards to report on the Schedule of Expenditures of Federal Awards ("SEFA"). The Organization did not have the single audit completed within the Uniform Guidance required timeframe. Cause/Effect - The Organization's controls were not adequate to ensure compliance with federal statutes, regulations, and Uniform Guidance requirements. Recommendation - We recommend the Organization strengthen internal controls and evaluate or monitor compliance with federal statutes, regulations, and the terms and conditions of their awards. In addition, we recommend the Organization ensures that SEFA is reviewed prior to providing it to the auditors. Finally, the Organization should consider incorporating the SEFA preparation within their checklist for the monthly closeout process.
Finding Number: 2022-001 Prior Year Finding Number: 2021-001 Compliance Requirement: Data Collection Reporting Package Program: Transitional Housing Grant Victims of Crime Act CFDA #: 16.736/16.575 Award #: 16.736-2016-WH-AX-0066 Subgrant Award #: 16.575 - VOCA-2018/2019 WCSC Award Years: 16.736 – 2016 16.575 – 2018 and 2019 Criteria: 2 CFR 200.512 requires that an entity’s single audit is to be submitted the earlier of thirty days after the receipt of the auditor’s report or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC). Condition: The Women’s Coalition of St. Croix’s audited financial statements for the September 30, 2022, year-end was not submitted to the Federal Audit Clearing House within the stipulated nine months after year-end. Questioned Costs: $-0- Context: This is a condition identified based on review of Uniform Guidance requirements and the grant agreements. Effect: The project is not in compliance with reporting compliance of the Office of Management and Budget for non-profit, state and local government entities. Cause: There were transitions in financial personnel which resulted in delays in the audit process. Recommendation: We recommend that the Women’s Coalition of St. Croix meets the reporting deadline by establishing an audit timeline to ensure that the reporting package is submitted to the FAC annually within the required timeframe. Views of Responsible Management Official and Corrective Action Plan: Management concurs with finding. See Current Year Corrective Action Plan.
Finding Number: 2022-001 Prior Year Finding Number: 2021-001 Compliance Requirement: Data Collection Reporting Package Program: Transitional Housing Grant Victims of Crime Act CFDA #: 16.736/16.575 Award #: 16.736-2016-WH-AX-0066 Subgrant Award #: 16.575 - VOCA-2018/2019 WCSC Award Years: 16.736 – 2016 16.575 – 2018 and 2019 Criteria: 2 CFR 200.512 requires that an entity’s single audit is to be submitted the earlier of thirty days after the receipt of the auditor’s report or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC). Condition: The Women’s Coalition of St. Croix’s audited financial statements for the September 30, 2022, year-end was not submitted to the Federal Audit Clearing House within the stipulated nine months after year-end. Questioned Costs: $-0- Context: This is a condition identified based on review of Uniform Guidance requirements and the grant agreements. Effect: The project is not in compliance with reporting compliance of the Office of Management and Budget for non-profit, state and local government entities. Cause: There were transitions in financial personnel which resulted in delays in the audit process. Recommendation: We recommend that the Women’s Coalition of St. Croix meets the reporting deadline by establishing an audit timeline to ensure that the reporting package is submitted to the FAC annually within the required timeframe. Views of Responsible Management Official and Corrective Action Plan: Management concurs with finding. See Current Year Corrective Action Plan.
2022-002—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.512, the annual single 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 or nine months after the end of the audit period (June 30, 2023). Condition: The Institute’s fiscal year 2022 single audit reporting package was not submitted by the due date of June 30, 2023. Questioned Costs: None. Context: N/A Cause: The Institute experienced turnover in the accounting department during the year, which caused delays in completion of year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: The audit was not started and completed until more than 9 months after year-end and was ultimately submitted past the regulatory deadline. Auditor’s Recommendations: The Institute should develop formal accounting policies and procedures, including its monthly and annual reconciliation procedures. This will help ensure that account reconciliations are performed timely so that the audit can be completed earlier in the year and the data collection form and reporting package are submitted by the due date. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
2022-002—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.512, the annual single 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 or nine months after the end of the audit period (June 30, 2023). Condition: The Institute’s fiscal year 2022 single audit reporting package was not submitted by the due date of June 30, 2023. Questioned Costs: None. Context: N/A Cause: The Institute experienced turnover in the accounting department during the year, which caused delays in completion of year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: The audit was not started and completed until more than 9 months after year-end and was ultimately submitted past the regulatory deadline. Auditor’s Recommendations: The Institute should develop formal accounting policies and procedures, including its monthly and annual reconciliation procedures. This will help ensure that account reconciliations are performed timely so that the audit can be completed earlier in the year and the data collection form and reporting package are submitted by the due date. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
2022-002—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.512, the annual single 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 or nine months after the end of the audit period (June 30, 2023). Condition: The Institute’s fiscal year 2022 single audit reporting package was not submitted by the due date of June 30, 2023. Questioned Costs: None. Context: N/A Cause: The Institute experienced turnover in the accounting department during the year, which caused delays in completion of year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: The audit was not started and completed until more than 9 months after year-end and was ultimately submitted past the regulatory deadline. Auditor’s Recommendations: The Institute should develop formal accounting policies and procedures, including its monthly and annual reconciliation procedures. This will help ensure that account reconciliations are performed timely so that the audit can be completed earlier in the year and the data collection form and reporting package are submitted by the due date. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
2022-002—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.512, the annual single 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 or nine months after the end of the audit period (June 30, 2023). Condition: The Institute’s fiscal year 2022 single audit reporting package was not submitted by the due date of June 30, 2023. Questioned Costs: None. Context: N/A Cause: The Institute experienced turnover in the accounting department during the year, which caused delays in completion of year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: The audit was not started and completed until more than 9 months after year-end and was ultimately submitted past the regulatory deadline. Auditor’s Recommendations: The Institute should develop formal accounting policies and procedures, including its monthly and annual reconciliation procedures. This will help ensure that account reconciliations are performed timely so that the audit can be completed earlier in the year and the data collection form and reporting package are submitted by the due date. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
2022-002—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.512, the annual single 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 or nine months after the end of the audit period (June 30, 2023). Condition: The Institute’s fiscal year 2022 single audit reporting package was not submitted by the due date of June 30, 2023. Questioned Costs: None. Context: N/A Cause: The Institute experienced turnover in the accounting department during the year, which caused delays in completion of year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: The audit was not started and completed until more than 9 months after year-end and was ultimately submitted past the regulatory deadline. Auditor’s Recommendations: The Institute should develop formal accounting policies and procedures, including its monthly and annual reconciliation procedures. This will help ensure that account reconciliations are performed timely so that the audit can be completed earlier in the year and the data collection form and reporting package are submitted by the due date. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
2022-002—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award year and number: All Pass-through entity (if applicable): All Criteria: According to 2 CFR Part 200.512, the annual single 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 or nine months after the end of the audit period (June 30, 2023). Condition: The Institute’s fiscal year 2022 single audit reporting package was not submitted by the due date of June 30, 2023. Questioned Costs: None. Context: N/A Cause: The Institute experienced turnover in the accounting department during the year, which caused delays in completion of year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: The audit was not started and completed until more than 9 months after year-end and was ultimately submitted past the regulatory deadline. Auditor’s Recommendations: The Institute should develop formal accounting policies and procedures, including its monthly and annual reconciliation procedures. This will help ensure that account reconciliations are performed timely so that the audit can be completed earlier in the year and the data collection form and reporting package are submitted by the due date. Management’s Response: Management of the Institute did not provide any comments in response to this finding.
Statement of Condition: The reporting package and data collection form for the year ended September 30, 2022, was not filed by the deadline of June 30, 2023, to the Federal Audit Clearinghouse. Criteria: In accordance with 2 CFR Section 200.512(a), 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, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Effect of Condition: The reporting package and data collection form for the year ended September 30, 2022, was not accessible on the Federal Audit Clearinghouse in a timely manner. Cause of Condition: The audit of the financial statements, preparation of the Single Audit Reporting Package, and preparation and submission of the Data Collection Form was not completed in sufficient time due to the change in the audit firm and delays in obtaining information to complete the audit. Further, the organization did not make the auditor aware that its federal awards exceeded the threshold for a Single Audit until after the required due date. Recommendation: We recommend the organization adopt policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. Further, we recommend that management review the current resources, capabilities and responsibilities within its finance department to ensure that information can be provided in a timely manner to complete the audit. Views of Responsible Officials: The organization agrees with the finding. Please refer to corrective action plan on page 46.
Finding Number: 2022-001 Federal Programs: All federal financial assistance programs. Category: Internal Control/Compliance - Material Weakness Compliance Requirement: Reporting - Data Collection Form Condition: The Office of the Advocate for the Elderly of the Commonwealth of Puerto Rico(OAE) submitted the data collection form for the year ended September 30, 2021, to Federal Clearinghouse after its due date. Also, the current single audit for the year ended September 30, 2022, is being completed and submitted after the corresponding date. Criteria: 2 CFR Part 200, Subpart C, Section 200.512 established that the audit shall be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. Cause: OAE's Single Audit Report for fiscal year 2021 was submitted on June 27, 2024. The main causes were recurrent delays in engaging the auditors and general planning of the process. For fiscal year 2022, the main causes were the delays experienced in the contract process to engage the external auditors and delays in retrieving the relevant support documents in custody of the Puerto Rico Department of Treasury. All the disbursements are processed by the subject Department. Effect: OAE may be subject to sanction, as described in the Uniform Guidance, Section 225 titled "Sanctions", in cases of continued inability to have an audit conducted in accordance with this part, Federal agencies and pass-through entities shall take appropriate actions using sanctions such as: (a) withholding a percentage of federal award until the audit is completed satisfactorily; (b) withholding or disallowing overhead cost; (c) suspending federal award until the audit is conducted; or (d) terminating the federal award. Questioned Cost: None. Recommendation: We recommend management to formalize a plan to monitor the single audit process, including the engagement of the external auditors, the completion of all required steps, including the access to the required documentation, as well as an itinerary of every relevant step to perform, complete and submit single audit during the required period. Management Response: Management agrees with the observation. Management recognizes that a delay was experienced with respect to 2022. However, Management is working on alternatives to accelerate the process to arrive at full compliance with due dates.