Finding 2018-001 - Timely Completion of Audit under Uniform Guidance, Loan Agreement, and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – Federal Program CFDA 10.766/10.780 Community Facilities Loans and Grants Cluster) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.512 (a)(1) states that the auditee must complete and submit the single audit report (including financial statements and the schedule of expenditures of federal awards) within nine months of the organization’s year-end. In addition, a Workout Agreement with USDA Rural Development required completion of the single audit by November 15, 2020 to comply with its original community program loan agreement with USDA. Condition and Context: The auditors were not engaged until December 2020, fifteen months after the due date. Shortly thereafter, the previous audit firm merged with the current audit firm, and due to COVID-19, staffing and scheduling issues, and delays in responding to audit requests, the completion of the audit was delayed significantly. Cause: Lack of planning for the audit to begin prior to the December 31, 2018 year end. Effect: The audit was completed well beyond the due date of September 30, 2019. Although it has not occurred as of this report date, the Government has the right to declare the entire balance immediately due and payable. Questioned Costs: None Recommendation: Management should determine prior to each year-end if an audit is required based upon that years’ grant funding and begin planning prior to year-end. In addition, responsibilities should be assigned to staff for timely completion of audit work and requested information. Views of Responsible Officials and Planned Corrective Actions: The 2023 staffing plan includes the addition of a controller and financial analyst. Initially we anticipate this controller to be a half time position growing to full time within 12-15 months. The analyst position will likely be a 2024 hire. These positions would be responsible for implementing the recommendation. We have created a job description for the controller and posted the position in early 2023. We did not find a suitable candidate and will repost.