Finding 2025-004 – Single Audit Report Submission – Significant Deficiency in Internal Control Over Compliance and Noncompliance (Repeat Finding – Prior Year 2023-002) Criteria or Specific Requirement: The Uniform Guidance, 2 CFR 200.512(a), requires the auditee to submit the single audit reporting package and the data collection form to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the fiscal year under audit. For the fiscal year ended June 30, 2024, the submission deadline was March 31, 2025. Condition: The single audit reporting package and data collection form for the fiscal year ended June 30, 2024 were not submitted to the Federal Audit Clearinghouse by the required deadline of March 31, 2025, resulting in a late filing and noncompliance with 2 CFR 200.512(a). This finding was previously identified as Finding 2023-002 for the fiscal year ended June 30, 2023, and was reported as resolved in the prior year audit. The recurrence of this condition indicates that the corrective actions implemented were not sufficient to prevent the issue from recurring. Cause and Effect: The late submission was primarily attributable to staff turnover in key finance positions, which resulted in delays in completing the year-end close, preparing the financial statements, and finalizing the single audit reporting package in a timely manner. Late submission of the single audit reporting package may jeopardize the Organization's standing with federal awarding agencies and could affect the Organization's ability to receive future federal funding. Auditors' Recommendations: Management should establish a formal single audit submission timeline with clearly defined milestones, responsible parties, and target completion dates beginning at the start of each fiscal year. The timeline should work backward from the submission deadline to establish interim deadlines for year-end close, draft financial statement preparation, management review, and auditor fieldwork. Given the recurring nature of this finding, management should also consider engaging its external auditors earlier in the process and ensuring that adequate finance staffing is in place prior to the year-end close. Progress against the submission timeline should be monitored by the CEO and reported to the Board of Directors. Management's Response: Management has created standard operating procedures and instructions in order to adhere to established quarterly and annual deadlines including quarterly board reporting and treasurer review for adherence to deadlines.
Finding 2025-013 – Delay in Single Audit Reporting Package Submission Criteria Pursuant to 2 CFR 200.512(a)(1), the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize an extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition The reporting package has not yet been submitted, which is after the March 31, 2026 deadline. Context The County expended federal awards requiring a Single Audit and was therefore subject to the reporting requirements of 2 CFR 200.512(a)(1). The required reporting package, including the audit reports and data collection form, was due no later than March 31, 2026. At the time of our audit, the reporting package had not yet been submitted to the Federal Audit Clearinghouse. Cause Management was unable to timely perform the year-end financial reporting and close process due to turnover in the finance department. Effect Late submission can affect the County's risk profile with federal agencies and pass-through entities and may impact future funding decisions. Identification as a Repeat Finding, if Applicable No. Questioned Costs None Recommendation Management should implement procedures to ensure future Single Audit reporting packages are submitted by the earlier of 30 days after receipt of the auditor's reports or nine months after year-end. Responsible Official County Administrator
Federal Program: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.063, 84.033, 84.038, 84.007, 84.268, 84.379 Federal Agency: Department of Education (DOE) Federal Award Numbers: P063P242023, P033A243392, Unknown, P007A243392, P268K252023, P379T0972023; Award Year: 2025 Criteria: Under 2 CFR §200.512 (Uniform Guidance), auditees must submit the reporting package and Data Collection Form (DCF) to the Federal Audit Clearinghouse within 30 calendar days after receipt of the auditor’s report, but no later than nine months after the end of the audit period. Condition: The University submitted the DCF after the required deadline: DCF due date: 3/31/2026 No documented extension or waiver was obtained. Status of DCF and audit was questioned by funding source. Cause: The institution did not have adequate internal controls or monitoring procedures in place to timely submit the DCF. Effect: Increased risk of federal oversight or sanctions for repeated late filings. Questioned Costs: None reported Context: Controls did not operate properly for the University to timely submit the DCF. Repeat Finding: Yes Recommendations: We recommend that the University evaluate its processes and controls to ensure DCF filings are completed timely. Views of Responsible Officials: Management agrees with the finding. See management's corrective action plan.
2025-012 LATE FILING OF THE SINGLE AUDIT REPORTING PACKAGE WITH THE FEDERAL AUDIT CLEARINGHOUSE (Significant Deficiency and Other Non-compliance) Title: All federal programs presented on SEFA Agency: U.S. Department of Justice, U.S Department of Education, U.S. Department of Agriculture, U.S. Department of Health and Human Services Pass Through: New Mexico Public Education Department Assistance Listings Number: All ALNs reported on SEFA Compliance Area: Other - Late Filing of Single Audit Reporting Package Federal Award Year: 2025 Questioned Costs: None Condition The District did not submit their Single Audit reporting package (financial statements, data collection form, and corrective action plan) within the required time period. Criteria 2 CFR 200.512 stipulates the requirement that the Single Audit 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 Effect Late reporting could cause additional oversight or restriction by certain State entities, including the District’s direct oversight entity (New Mexico Public Education Department). Cause Due to turnover, internal controls were not properly designed, executed, and monitored to ensure a timely preparation of reports and records for audit purposes. As a result, management did not comply with the submission requirements of 2 CFR 200.512
Finding 2025-004: Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of Health and Human Services Federal Programs: ACL Centers for Independent Living Assistance Listing Number: ALN 93.432 Award Numbers: 2302AKILCL and 2402AKILCL Award Period: 2023 and 2024 Type of Finding: Material Weakness in Internal Control over Compliance/Material Noncompliance Condition and Context: The Organization did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after receipt of the audit report, or nine months plus any extensions after the end of the audit period, (i.e. the FAC Report was not submitted timely.) Criteria: The Uniform Guidance requires that the reporting package be submitted within the earlier of nine months plus any extensions 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. Cause: Due to reduced resources the Organization was unable to submit their report timely. Effect: The Organization is not in compliance with Uniform Guidance requirements. Questioned Costs: None. Repeat Finding: This is not a repeat finding. Recommendation: The Organization needs to work on getting financial information more timely (i.e. submit the reporting package with the guidelines of Uniform Guidance). Management Response: Management concurs with this finding. See Corrective Action Plan.
Finding 2025-004: Late Submission of the Data Collection Form (Significant Deficiency) Information on the Federal Programs: Assistance Listing Number 98.001 Criteria: In accordance with 2 CFR §200.512, the auditee is required to submit the reporting package and Data Collection Form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period. Condition: Astraea did not submit its Data Collection Form and reporting package to the Federal Audit Clearinghouse within the required timeframe. Cause: The late submission of the Data Collection Form was primarily the result of delays in completing the audit, which were caused by financial reporting issues identified during the audit process (See Finding 2025-001). These issues required additional time for management to analyze, correct, and finalize the underlying financial information. Effect: Failure to submit the Data Collection Form timely resulted in noncompliance with Uniform Guidance reporting requirements and may impact federal oversight and monitoring. Questioned Costs: None noted. Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: We recommend management strengthen its financial reporting processes and related internal controls to ensure accurate and timely preparation of financial information. Improving the timeliness and reliability of financial reporting will help facilitate a more efficient audit process and support timely submission of the Data Collection Form and reporting package in accordance with Uniform Guidance requirements.
Finding 2025-004 Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of Commerce Federal Program: Economic Development Cluster ALN: 11.307 Award Numbers: ED23SEA0G0012 Award Year: 2025 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: In accordance with 2 CFR part 200, subpart F, section 200.512, the reporting package must be submitted the earlier of nine (9) months after year end or 30 days after the report issuance. Condition and context: The City did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period. Cause: The City was not able to provide the necessary audit documents within a timely matter. Thus, the City was not able to complete the audit within the Uniform Guidance requirement. Effect: The City was not in compliance with reporting requirements. Questioned Costs: None noted. Repeat finding: This is not a repeat finding. Recommendation: We recommend the City adhere to Uniform Guidance reporting requirements. Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Statement of Condition Sunrise Residential, Inc. was unable to provide timely year-end trial balances in accordance with U.S. GAAP and therefore did not submit its audited financial statements, SEFA, and other required information to the Federal Audit Clearinghouse by the required due dates. Criteria Sunrise Residential, Inc. is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and Uniform Guidance reports to the Federal Audit Clearinghouse. All items are required to be submitted to the Federal Audit Clearinghouse within nine (9) months after Sunrise Residential, Inc.’s fiscal year-end. Accounting tasks such as timely monthly analysis, reconciliations and review of accounts play a key role in providing the accuracy of accounting data and information included in the interim and year-end consolidated financial statements required for submission. Trial balances should be maintained for the Organization continuously, in accordance with U.S. GAAP. Detailed supporting schedules should be maintained for all significant asset, liability, revenue and expense accounts. Reconciling items should be investigated and resolved in a timely manner. All of the aforementioned items are essential to ensure that financial statements and data collection forms are submitted in conformance with 2 CFR Section 200.512(a)(1), certain tax returns, and certain grant agreements. Cause The Organization did not maintain an effective process to ensure timely preparation and submission of required Federal reporting. The primary cause of the delayed submission was the Organization’s inability to close its books timely at fiscal year-end. The absenceof formal month-end and year-end close procedures, including insufficient account reconciliation schedules, undefined close deadlines, and a lack of monitoring controls, prevented the accounting department from producing accurate and complete financial data within the timeframes necessary to support a timely audit. Without a reliable and repeatable close process, the audit could not commence or progress on schedule, creating delays throughout the entire financial reporting cycle. In addition to this, there were broader deficiencies in planning, coordination, and monitoring of the audit and financial reporting process, including a lack of defined timelines, insufficient tracking of deliverables, and inadequate controls to identify and address delays. Effect Noncompliance with financial reporting deadlines could cause funding sources for Sunrise Residential, Inc. to suspend funding until compliance is achieved. Questioned Costs None noted. Perspective This audit finding is systematic. Statistical Sample A statistical sample is not applicable to this finding. Repeat Finding This audit finding is a repeat finding. Recommendation Management should establish and implement formal procedures to ensure timely completion and submission of required Federal reporting. As a foundational step, management should develop and enforce a formal month-end and year-end close process that includes defined close deadlines, assigned responsibilities for each close task, a documented reconciliation checklist, and supervisory review controls to ensure the books are closed accurately and on schedule prior to the commencement of the annual audit. Without a reliable close process, downstream reporting timelines cannot be met. In addition to close procedures, management should implement a documented audit timeline aligned with Federal reporting deadlines, including defined roles and responsibilities and monitoring controls to track progress and escalate delays. Management should also enhance process documentation and cross-training to mitigate the impact of personnel changes and support continuity of the reporting process. Auditor Noncompliance Code S – Internal Control Deficiencies View of Responsible Officials Management agrees with the finding. Management will establish procedures and monitor compliance with those procedures to ensure that the audited financial statements, schedule of expenditures of federal awards, and other required information is filed with the Federal Audit Clearinghouse by required due dates.
Finding reference number: 2025-002 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2025-002: For the year ended June 30, 2024, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 9 months after the end of the audit period. The audited financial statements were submitted to the Federal Audit Clearinghouse on April 25, 2025. Criteria: Pursuant to 2 CFR 200.512(a), the Corporation is required to electronically submit audited financial statements to the Federal Audit Clearinghouse within the earlier of 30 days after receipts of the auditor's report or nine months after the end of the audit period. Effect: The Corporation is not in compliance with the federal reporting requirements. Cause: There was a delay in the approval of the required form. Recommendation: The Corporation should submit audited financial statements to the Federal Audit Clearinghouse within the time frames required. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements have been submitted to the Federal Audit Clearinghouse. No further action is required.
Criteria: The City is required under CFR 200.512(a) to file the annual audit, data collection form, and reporting package within nine months after the end of the audit period. Condition: Deficiencies in the City’s internal controls prevented the timely completion and submission of the annual audit, data collection form, and reporting package to the Federal Audit Clearinghouse. Cause: The City failed to provide proper oversight over period-end financial reporting which resulted in delays in issuing the annual audit report for the year ended June 30, 2025. Effect: The City did not file the annual audit, data collection form, and reporting package for the fiscal year ended June 30, 2025, to the Federal Audit Clearinghouse by March 31, 2026. Recommendation: We recommend management review the period end financial reporting process and implement changes to allow for timely completion of accurate financial reports. This will allow them to be in compliance with CFR 200.512(a). Response: The City agrees with the finding and recommendation. Management will review and strengthen the year-end financial reporting process to improve the timeliness of the audit and financial statement preparation. The City will work with its auditors to establish and monitor reporting deadlines and will evaluate staffing and training needs to help ensure compliance with the filing requirements of 2 CFR 200.512(a) in future periods.
Federal Program: ALN 10.536 CACFP Training Grants ALN 93.575 Child Care and Development Block Grant (CCDBG) ALN 93.600 Head Start Category: Compliance/Internal control significant deficiency Compliance Requirement: Reporting Criteria: 2 CFR §200.512 (a) (1) establishes that the audit must be completed, and the data collection form and reporting package must be submitted within the earlier 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: BGCPR did not submit the required data collection form and reporting package for the year ended June 30, 2025, within the required period. Cause: BGCPR did not have available the financial information necessary to complete the audit procedures and single audit reporting package. Effect or potential effect: Condition may result in noncompliance with the requirements for Reporting. Recommendation: We recommend management establish calendars to ascertain submission of data collection form and reporting package within the required dates. Identification as a repeat finding: As of June 30, 2024, finding 2024-010 was identified under this condition. This finding is still valid for the year ended June 30, 2025. Views of responsible officials: BGCPR acknowledges that the delay in the preparation and submission of its audited financial statements was influenced by several interrelated factors, primarily stemming from the challenges associated with a transitional period and the unexpected resignation of the Chief Financial Officer (CFO). The absence of a key financial executive during this period significantly impacted on BGCPR’s ability to compile, review, and finalize the required financial documentation in accordance with established timelines. As a result, BGCPR was unable to meet the statutory deadlines for submitting the audited financial statements, including the data collection form and the complete reporting package, thereby resulting in non-compliance with applicable legal and regulatory reporting requirements. Recognizing the importance of timely and accurate financial reporting, BGCPR is committed to implementing corrective measures. These include the development and enforcement of a structured reporting calendar, the allocation of dedicated resources to support audit preparation, and the establishment of internal checkpoints to monitor progress. These actions are intended to ensure that future submissions are completed within the required deadlines, thereby restoring compliance and reinforcing BGCPR’s commitment to transparency and accountability. As a corrective measure, BGCPR will take the following actions: a. Developing and enforcing a structured reporting calendar; b. Allocating dedicated resources to support audit preparation; c. Establishing internal checkpoints to monitor progress and ensure accountability; d. Ensure future submissions meet the required deadlines. Anticipated completion date: December 31, 2026
Finding 2025-003 – Material Weakness – Single Audit Reporting Package Not Submitted in a Timely Manner (Repeat Finding of 2024-003) Federal program: All federal programs Criteria: Pursuant to 2 CFR 200.512 of the Uniform Guidance requires the organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. Condition: The Town did not submit its single audit reporting package or data collection form within the required timeline. Cause: The Town did not prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner. Effect or Potential Effect: The late submission of the audited financial statements and data collection form resulted in the Town being noncompliant with the provisions of Section 200.512 of the Uniform Guidance. Recommendations: We recommend the Town strengthens the year-end close process to provide ample time to finalize the general ledger and trial balance to meet the federal audit clearinghouse nine-month submission deadline. Views of Responsible Officials and Planned Corrective Action: The Town's management concurs with the finding and will implement the recommendation above.
Condition: The auditee did not submit its Single Audit reporting package to the Federal Audit Clearinghouse (FAC) within the required timeframe. Criteria: In accordance with 2 CFR §200.512(a), the auditee must submit the data collection form and reporting package to the Federal Audit Clearinghouse 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 delay occurred due to delayed completion of audited financial statements. Effect: Failure to submit the Single Audit report timely represents noncompliance with federal reporting requirements and may result in federal agencies designating the auditee as a high-risk entity, potential delays in future federal funding, or additional oversight by granting agencies. Questioned Costs: None. Recommendation: We recommend management implement procedures to ensure the Single Audit reporting package is completed, reviewed, and submitted to the Federal Audit Clearinghouse within the required timeframe. This could include developing a formal year-end close schedule, assigning responsibility for the submission process, and maintaining a checklist with submission deadlines and requirements.
Criteria: 2 CFR Part 200, Subpart F (§200.512) requires auditees to submit the Federal Form SF-SAC and reporting package to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report, or nine (9) months after the end of the audit period. Statement of condition: The Auditee's Single Audit for the fiscal year ended June 30, 2025 was not finalized for submission to the Federal Audit Clearinghouse within the prescribed nine (9) month filing deadline. Questioned costs: None. Context/cause of condition: The major Federal program compliance audit (Single Audit) was not completed within the prescribed time line. Effect: The Organization is not eligible to be designated as a "low-risk auditee" for the subsequent two (2) fiscal years. Recommendation: The Organization should enhance internal tracking controls and establish an electronic tickler file to ensure all future audit packages and the Form SF-SAC submissions are certified and submitted before the statutory deadlines.
Finding 2025-003 (Repeat finding 2024-003) – All Federal Programs Noncompliance – Reporting Compliance Requirement: 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, 2025 was not submitted to the Federal Audit Clearinghouse on a timely basis. Cause – Delays in audit timing caused by management’s slow response to auditor’s request have resulted in the audit being constantly delayed. Effect – By not submitting information to the Federal Audit Clearing House on a timely basis, the Organization may be at risk for losing federal funding. Questioned Costs – None noted. Context – The data collection form for the year ended June 30, 2025 should have been submitted to the Federal Audit Clearinghouse by March 31, 2026. Recommendation – We recommend management ensure 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 concurs with the finding, see Corrective Action Plan.
Criteria: According to 2 CFR 200.512(a)(1) of the Office of Management and Budget's Uniform Guidance, the audit, data collection form, and reporting package must be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after the auditee receives the auditor's reports or nine months after the end of the audit period. These submissions are a key part of ensuring transparency and compliance with federal funding requirements for the Child Nutrition Cluster Programs. Deviation/Condition: The Organization did not submit the Data Collection Form and reporting packages to the Federal Audit Clearinghouse (FAC) within the required time frame. This failure to meet the deadline constitutes a significant deficiency in internal controls, as it delays the required reporting and could impact the federal oversight of program funds. Reporting Period: The findings pertain to the reporting period for the fiscal year ended June 30, 2025. Known/Likely Questioned Costs: There are no questioned costs associated with this finding, as the delay does not involve improper use of federal funds, but rather the timing and submission of required documentation. Cause: The delay in submission occurred due to lapses in the Organization’s internal processes for managing and tracking deadlines. There was also a lack of consistent monitoring of the compliance calendar and the reminders that had been set in place to facilitate timely submission. The Organization has identified these gaps as the primary cause of the issue. Possible Asserted Effect: Although there are no questioned costs, the failure to submit the required forms and reports in a timely manner could negatively impact the Organization’s relationship with the federal oversight agencies, as well as the integrity of its internal controls. Additionally, it may cause delays in subsequent audits and reporting, affecting the program’s ongoing compliance status. Perspective: From the Organization’s perspective, the issue was not intentional but resulted from gaps in internal controls and inadequate planning. The Organization has acknowledged these deficiencies and is committed to improving its processes to ensure compliance moving forward. Corrective actions are already in progress. Recommendation: It is recommended that the Organization: 1. Appoint a member to be responsible for monitoring the compliance calendar that tracks all required submission deadlines and includes automatic reminders to ensure timely reporting. 2. Engage with the audit firm early in the year to schedule audit work and align timelines with internal deadlines to allow sufficient time for the audit process. 3. Increase the involvement of the Board of Directors in overseeing the financial reporting and audit process, ensuring that accountability is established at the highest level. 4. Continue training staff involved in reporting and the Child Nutrition programs, with a focus on timely submission and compliance with all federal reporting requirements. 5. Implement an organized filing system for all Child Nutrition programs’ documents to make information and documents easily accessible for the Organization and the auditors. Views of Responsible Official: Moshe Weiss, Food Program Director, is the responsible official for the Organization. He agrees with the audit findings and the associated recommendations. The Organization has already made progress on implementing corrective actions, including staff training, improved internal tracking and monitoring, and is working to develop an organized and efficient document management system. The Organization is committed to further enhancing internal controls and ensuring future compliance with all deadlines. Confidential and Sensitive Info: Financial and operational documents referenced in this audit finding, including internal compliance procedures and staff training materials, contain sensitive information. These documents are confidential and have been shared with the audit team under a confidentiality agreement.
REPORTABLE NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS – ALL FEDERAL PROGRAMS AWARDED UNDER THE UNIFORM GUIDANCE 2025-007 Federal Reporting Deadline Criteria – 2CFR Part 200, Subpart F, § 200.512(a)(1) requires the District’s audited Schedule of Expenditures Federal Awards (SEFA) and federal reporting package to be submitted to the federal audit clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The District’s audited SEFA and federal reporting package for the fiscal year ended June 30, 2025, were not submitted to the federal audit clearinghouse within nine months after the end of the audit period. Questioned Costs – Not applicable. Context – The District’s audited SEFA and federal reporting package for the fiscal year ended June 30, 2025, were not submitted to the federal audit clearinghouse by the federal reporting deadline. Repeat Finding – This is a current and prior year finding. Cause – The completion of the District’s audited annual financial statements for the year ended June 30, 2025, which is a required component of the federal reporting package, was delayed beyond the nine-month deadline. Effect – The delay in the completion of the District’s financial audit for the year ended June 30, 2025, prevented the submission of the required information to the federal audit clearinghouse in a timely manner. Recommendation – We recommend the District ensure the timely submission of its audited SEFA and federal reporting package to the federal audit clearinghouse in the future. View of Responsible Official and Planned Corrective Actions – There is no disagreement with the audit finding. District management will ensure that all information required to comply with federal reporting requirements will be completed and submitted in a timely manner going forward. The District has separately issued a Corrective Action Plan related to this finding.
Criteria: Per Title 2 CFR.200.512(d), "the data collection form 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. The Organization's Data Collection Form for the year ended June 30, 2024 was due by March 31, 2025. Condition: The Organization did not file their Data Collection Form on time in accordance with the Single Audit Act requirements. The Data Collection Form was not filed until June 6, 2025. Cause: The audit report was not issued until May 23, 2025 due to the prior director not having the financial statements and supporting documentation ready for the audit in a timely manner. Effect: The Organization was not in compliance with the reporting deadline. Questioned Costs: None. Context: The Data Collection Form must be submitted to the Federal Audit Clearinghouse in a timely manner. The report was filed 67 days late. Repeat Finding: No. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations Guidelines. Views of Responsible Officials: We have hired a new Director and Finance Director and will esure the Data Collection Form is submitted timely going forward.
Condition: The Airport did not submit the data collection form to the Federal Audit Clearinghouse (FAC) timely. Context and Criteria: As required by 2 CFR section 200.512, the data collection form must be submitted to the FAC nine months after the end of the audit period. Cause: The independent audit firm originally engaged to perform the Airport’s audit for the year ending June 30, 2024 informed the Airport of the firm’s inability to complete the audit as engaged, due to scheduling issues resulting from the death of a former partner. The notification was not timely and as a result, the Airport was unable to engage a successor audit firm in sufficient time to complete the data collection form submission to FAC within prescribed due dates. Effect: The Airport did not comply with 2 CFR section 200.512 for timely report submission. Recommendation: Procedures should be put in place to ensure the data collection form is submitted to the FAC timely. Views of Responsible Officials and Planned Corrective Actions: Airport management will ensure the data collection form is submitted to the FAC timely.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program: 14.129, Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Criteria or Specific Requirement - 2 CFR § 200.512, Report Submission, requires completion of an audit and submission of the data collection form and reporting package within the earlier of thirty calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. Condition - The audit and data collection form are being submitted after the required due date. Cause – The Corporation experienced staff turnover at the facility which resulted in audit information not being provided timely and noncompliance with regulatory filing requirements. Effect – Noncompliance with the requirements of 2 CFR § 200.512. There is a potential for suspension or cessation of federal funding under the federal award. Questioned Cost - None Context – We reviewed the audit submission date in comparison to the required due date. Repeat Finding – This is not a repeat finding. Recommendation – The Corporation should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and audited within nine months after year end. Views of Responsible Officials and Planned Corrective Actions – See corrective action plan.
Federal Assistance Listing Number - 93.959 - Block Grants for Prevention and Treatment of Substance Abuse Criteria: The Data Collection Form is required to be submitted to the Federal Audit Clearinghouse ("FAC") within nine months of year end (2 CFR 200.512(a)(2). Condition: The Data Collection Form was not submitted to the FAC within the nine-month period for the year ended June 30, 2025. Effect: The Corporation was not in compliance with the requirement to complete the filing required by the Uniform Guidance within nine months of its year end, and therefore, the Corporation cannot be considered a low risk auditee for the years ended June 30, 2026 and 2027. Context: When performing our audit we noted the Data Collection Form submission to the FAC was not filed on a timely basis. Cause: There were personnel changes within the Corporation, which caused delays in concluding the audit on a timely basis. Recommendation: We recommend the Corporation's Data Collection Form submission to the FAC be filed within nine months of its fiscal year end as required. Views of Responsible Officials and Planned Corrective Actions: The Corporation concurs with the recommendation. See attached Correction Action Plan.
Significant Deficiency Finding No. 2025-004: Reporting U.S. Department of Health and Human Services Substance Abuse and Mental Health Services Federal Assistance Listing Number 93.243. U.S. Department of Health and Human Services Health Care for Native Hawaiians Federal Assistance Listing Number 93.932.Criteria A non-Federal entity that expends $750,000 or more in Federal awards during the year must have a single audit conducted in accordance with 2 CFR §200.514. Pursuant to 2 CFR §200.512, the audit must be completed and Form SF-SAC: Data Collection Form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ report(s), or nine months after year end of the audit period. Condition Due to the unexpected resignation of its independent auditor, we noted that the Organization has not submitted the single audit reports required by the Uniform Guidance, including the Data Collection Form to the Federal Audit Clearinghouse for the year ended June 30, 2025, within the stipulated nine months after the end of the audit period. Cause The Organization has not adhered to established Uniform Guidance terms and conditions regarding the submission dates of the single audit reports and Data Collection Form for the year ended June 30, 2025. Effect The Organization is not in compliance with the Uniform Guidance terms and conditions regarding the submission dates of the single audit report and Data Collection Form for the year ended June 30, 2025. Identification of a Repeat Finding This finding was reported as a federal award finding in the immediately previous audit as Finding No. 2024-004.Recommendation We again recommend that the Organization incorporate internal controls to ensure compliance with the Uniform Guidance with respect to the submission deadline of single audit reports and the Data Collection Form. Views of Responsible Officials and Planned Corrective Action The Organization concurred with the prior year (2024-004) and current year renumbered recommendation (2025-004), acknowledging that the unexpected resignation of the former independent auditor (January 2023), and the domino effect of a delay in securing a new independent auditor (April 2023) and completion of single audits continued to challenge the Organization through the fiscal year ended June 30, 2025. The Organization notes the following: A. Status and Progress of Single Audits 1. Single Audit as of fiscal year ended (FYE) June 30, 2022, filed in the Federal Audit Clearinghouse (FAC) on February 20, 2025. 2. Single Audit as of FYE June 30, 2023, filed in the FAC on March 9, 2026. 3. Single Audit as of FYE June 30, 2024, filed in the FAC on June 20, 2026. 4. Single Audit as of FYE June 30, 2025, projected for filing in the FAC no later than September 30, 2026. Note: Once the FYE June 30, 2025, single audit is filed, the Organization will no longer be delinquent in filing its single audit in the FAC. 5. Single Audit as of FYE June 30, 2026, engagement letter signed with scheduled field work to commence after the June 30, 2025, FAC filing (e.g., October 2026); with a projected on-time FAC filing no later than March 31, 2027, in compliance with 2 CFR §200.514 – Standards and scope of audit; and 2 CFR §200.512 – Report submission via Form SF-SAC: Data Collection Form, nine months after year end of the audit period. B. Policy, Process and Communications re: Single Audits, the Organization implemented the following policy, process and communications practices: 1. Financial Policies: Internal Control Environment Policy, Implementation of Significant Accounting Policies. 2. Process: Review and Approve Audit Report, including Financial Statements. 3. Communication of the status of the single audit(s) via Memo to the Board occurred in February, March, May, June and August 2026; and as a continuing practice will be completed for each Board meeting.
Finding No. 2025-004 – Audit Requirements For Auditees – Report Submission Federal Program ALN 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disaster) Program Name of Federal Agency U.S Department of Homeland Security Pass-through Entity Central Office of Recovery, Reconstruction and Resiliency (COR3) Category Non-compliance / Significant deficiency in internal controls over compliance Compliance Requirements Reporting Criteria As required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), § 200.512 Report submission (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 auditors’ 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 data collection form and the reporting package for the year ended on June 30, 2025 was not submitted to the Federal Audit Clearinghouse within the timeframe prescribed by the Uniform Guidance. Cause Accounting and reporting processes are being significantly delayed and thus, the information necessary to complete the financial statement audit procedures was not available within the timeframe prescribed by the Uniform Guidance. Effect As a result of this condition, the federal agencies that have granted funds may issue warnings and/or impose penalties to the Corporation. Also, the federal agencies were prevented from the use of accurate reporting data, which is critical for the effective administration of the federal program and for federal agencies’ budgetary policy analysis. Questioned cost None. Context The Corporation did not comply with the timeframe required to file it’s Uniform Guidance Single Audit Report for the fiscal year ended on June 30, 2025. Identification of a repeat finding This is a repeat finding from the immediate previous audit, Finding No. 2024-005. Recommendation We strongly recommend the Corporation to institute policies and procedures that stipulate the specific tasks and the personnel in charge of filing the required reports. Also, the policies and procedures should designate the member of management in charge of monitoring the compliance with the reporting requirements in order to make sure that the Corporation is filing the reports by their respective due dates. The Corporation’s management and responsible officers agree with this finding. Please refer to the corrective action plan section for the Corporation’s response on pages 71 to 74.
Condition The Municipality did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse for the fiscal year ended June 30, 2025, within the required time frame. The submission was due no later than March 31, 2026, nine months after the end of the fiscal year. Criteria 2 CFR § 200.512 Report Submission, (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. Context The Municipality was unable to provide timely the financial statements and related supporting documentation in order to apply required audit procedures. Cause Management did not have adequate procedures in place to ensure the timely filing of the single audit reporting package and data collection form to the Federal Audit Clearinghouse. Effect The Municipality did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of federal funds. In addition, for the next two (2) fiscal years the Municipality cannot be considered by the auditor as a low-risk auditee. Questioned costs None Recommendation We recommend the Municipality to maintain adequate accounting records related to the non-federal and federal funds in order to properly prepare the financial statements accurate and in a timely manner. In addition, the Municipality needs to implement adequate internal controls procedures in order to assure that the supporting documentation is available in a timely manner.
Federal Awards Findings and Questioned Costs Finding 2025-004; Reporting All Assistance Listing numbers Criteria: The Uniform Guidance 2 CFR 200.512(a) requires the City’s audit to be completed and submitted within nine months after the end of the audit period, or March 31, 2026. Condition: The reporting package was not submitted until September 2026. Cause: The audit was not completed due to resource constraints at the City. Effect: Potential suspension or delayed funding by federal agencies. Questioned Costs: None. Recommendation: We recommend the City file the reporting package timely. Views of Responsible Officials and Planned Corrective Actions: The City acknowledges that the fiscal year 2025 reporting package was not submitted within the required timeframe. The delay was affected by the late completion of the prior year audit, which caused the subsequent audit process to being behind schedule. Following a change in City management, the City is establishing an audit preparation schedule, organizing supporting documentation throughout the year, assigning responsibility for coordinating audit requests, and maintaining regular follow-up with the auditor. The City will make every reasonable effort to ensure future audit reporting packages are completed and submitted with the established deadline.
Finding 2025-003 Reporting - Timely Submission of Financial Reports – Noncompliance and Significant Deficiency in Internal Control over Compliance Agency: Department of Health and Human Services Program: ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year: 2024 Criteria or Specific Requirement: 2 CFR subtitle A Chapter II part 200 subpart F section 200.512 states that “(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.” Condition: The Federal data collection form and reporting package were not filed on time. Cause: There were limited personnel resources at the Borough to assist in the timely completion of the Borough’s audit. Effect or potential effect: Federal funds could potentially be expended on unallowable activities and for unallowed costs, and outside the period of performance. Questioned Costs: None noted. Context: The Form SF-SAC is due nine months after the fiscal year-end. The form for the fiscal year ended June 30, 2025 was filed late. Identification as a Repeat Finding: Yes. Finding 2024-003 Significant Deficiency in Internal Control over Compliance and Noncompliance Recommendation: The Borough should evaluate resources allocated to staffing to ensure it has the capacity to adequately prepare and assist in the timely execution of the audit. Views of responsible officials: Management agrees with the finding and has engaged additional accounting resources and expertise.
Condition and Context: The District did not establish controls to identify and monitor applicable federal reporting requirements associated with its federal awards. As a result, the District did not submit its Single Audit reporting package to the Federal Audit Clearinghouse by the required deadline of March 31, 2026. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) §200.303 requires non-Federal entities to establish and maintain effective internal control over Federal awards that provides reasonable assurance the entity is managing the awards in compliance with Federal statutes, regulations, and the terms and conditions of the award. Additionally, 2 CFR §200.512(a) requires the audit reporting package to be submitted to the Federal Audit Clearinghouse within 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 District had not established procedures to identify when Federal expenditures triggered Single Audit requirements or to monitor and ensure compliance with applicable Federal reporting deadlines. Effect: The District did not timely submit its Single Audit reporting package to the Federal Audit Clearinghouse. Failure to comply with Federal reporting requirements may result in increased oversight by granting agencies and could affect the District's continued eligibility for current or future Federal funding. Recommendation: The District should establish procedures to identify applicable Federal compliance requirements upon acceptance of Federal awards, monitor cumulative Federal expenditures to determine when a Single Audit is required, assign responsibility for monitoring reporting deadlines, and maintain a compliance calendar to ensure timely submission of all required Federal reports and the Single Audit reporting package. The District's Response: The District’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Finding Number: 2025-002 Repeat Finding: Yes, prior year finding 2024-004. Program Name/Assistance Listing Title: Indian Schools Student Transportation/Indian Education Facilities, Operations, and Maintenance Assistance Listing Number: 15.044, 15.047 Federal Agency: U.S. Department of the Interior Federal Award Number: A24AV00827 Questioned Costs: None Type of Finding: Noncompliance, Material Weakness Compliance Requirement: L. Reporting Criteria: 2 CFR § 200.512(a) provides, in part: "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." 2 CFR § 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in § 200.512." Condition: The School did not submit their audit for the fiscal year ending June 30, 2025 timely. The audit was submitted September 15, 2026, which was 168 days past the March 31, 2026 deadline. Effect: Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the School from qualifying as a low-riskauditee. Cause: Management did not provide the trial balance until after the end of the fiscal year and several months after the federal reporting deadline. Recommendation: The School should implement procedures to ensure that all audit documentation is available for the audit in a timely manner and the audit report is completed andsubmitted within the appropriate timeframe. View of Responsible Official: The School’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.
Finding 2025-003 Deadline for Federal Single Audit – Reporting – Noncompliance and Internal Control over Compliance – Significant Deficiency Agency/Pass-Through Grantor: United States Department of Agriculture Environmental Protection Agency Assistance Listing Numbers (ALN) and Program Name: 10.665 – Schools and Roads Cluster 10.760 – Water and Waste Disposal Systems for Rural Communities 66.468 – Drinking Water State Revolving Fund Award Year: FY 2025 Criteria or Specific Requirement: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 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. Condition: The reporting package and data collection form for the year ended June 30, 2025 were not submitted by the deadline to the Federal Audit Clearinghouse. Cause: The audit was not completed on time to file the reporting package and data collection form, due to a delay in closing the books, records, and grants. Effect or potential effect: The Schedule of Expenditures of Federal Awards was not available in a timely manner in order to allow for timely submission of Form SF-SAC Questioned Costs: None Context: The Form SF-SAC is due nine months after the fiscal year end. The form for the fiscal year ended June 30, 2025 was filed late. Identification as a repeat finding: Not a repeat finding. Recommendation: We recommend the Borough 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. Views of responsible officials: Management concurs with this finding. Management will ensure Beginning balance reconciliations and year-end adjustments will be completed by September and will work with external auditors to have a financial statement draft prior to their fieldwork.
Compliance Requirement: Per 2 CFR § 200.512(a)(1), the audit reporting package must be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The Organization did not submit its reporting package for the year ended June 30, 2025 within the required nine-month timeframe. Context: The delay in submission was the result of the financial statement audit not being finalized within the required timeframe. Timely submission of the reporting package is dependent upon completion of the audit. A similar delay occurred in the prior year. Cause: Controls over the financial reporting and audit completion process were not sufficiently effective to ensure that the audit was completed in time to meet Uniform Guidance reporting deadlines (see finding 2025-001). While processes existed to track audit progress and reporting requirements, execution of those processes did not consistently result in timely completion. Effect: Failure to submit the reporting package within the required timeframe resulted in noncompliance with Uniform Guidance reporting requirements. However, the delay did not impact the underlying financial statements, the results of the compliance audit, or the Organization’s compliance with federal program requirements, and no questioned costs were identified. Recommendation: Management should enhance controls over the financial reporting and audit process by establishing a detailed audit timeline, strengthening monitoring of progress, formalizing escalation procedures, and improving coordination with external auditors. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the delay and has taken steps to improve the timeliness of the audit and reporting process, including implementing a formal audit timeline, increasing oversight of audit progress, and enhancing coordination with external auditors.
Finding 2025-002 – Late Filing SIGNIFICANT DEFICIENCY Federal Program / State Project: All Sponsoring Agency: All Criteria: In accordance with 2 CFR Part 200.303(a), the auditee must establish and maintain internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Section 200.512 of the Uniform Guidance states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditors’ report, or nine months after the end of the fiscal year of the auditee (whichever is earlier). In accordance with Section 215.97, Florida Statutes, an auditee must promote sound financial management, including effective internal controls, with respect to state financial assistance administered by nonstate entities. The financial reporting package required to be submitted pursuant to Section 215.97(8)(g), Florida Statutes, shall be submitted to the Auditor General and the State awarding agencies within 45 days after delivery of the financial reporting package to the auditee, but no later than 9 months after the end of the fiscal year of the auditee. Condition: The Organization did not complete its audit prior to the federal and state deadlines. The federal and state single audits for the year ended June 30, 2025 were due no later than March 31, 2026. Cause: The Organization does not have adequately designed internal controls to ensure timely submission of Single Audit reporting packages, including: No documented audit submission calendar covering both federal and Florida Single Audit requirements. Insufficient assignment of responsibility for submission, certification, and final review. Effect or Potential Effect: Late submissions limit the ability of federal and state awarding agencies and pass‑through entities to timely rely on audit results for monitoring and oversight and increases the risk of administrative or compliance consequences, including enforcement actions or delays in future funding. Questioned Costs: None. This finding relates to reporting compliance and does not result in identifiable questioned costs. Context: The Organization expended both federal awards subject to the audit requirements of 2 CFR Part 200, Subpart F, and State of Florida financial assistance subject to the Florida Single Audit Act during the fiscal year ended June 30, 2025. As a result, the Organization was required to obtain a federal and Florida Single Audit and submit the corresponding federal and Florida Single Audit reporting packages to the appropriate oversight agencies within established statutory deadlines. Management is responsible for ensuring that required audit reporting packages are completed, certified, and submitted timely to allow federal and state awarding agencies and pass‑through entities to rely on the audit results for monitoring and oversight purposes. Repeat Finding: No. Recommendation: We recommend the Organization implement and document internal controls to ensure timely submission of both federal and Florida Single Audit reporting packages, including: A formal audit submission calendar with statutory deadlines. Assignment of responsible personnel for preparation, certification, and submission. Management review of submission confirmation prior to the applicable deadlines. Views of Responsible Officials: Management agrees with this finding. See corrective action plan included at the end of the report.
FINDING REFERENCE NUMBER 2025-001 FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING SIGNIFICAN DEFICIENCY CRITERIA 2 CFR § 200.512 Report Submission, (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. STATEMENT OF CONDITION PRIDCO did not submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2025, during the required period. QUESTIONED COSTS None PERSPECTIVE INFORMATION On January 28, 2026, PRIDCO requested a waiver to US Homeland Security, establishing why the Single Audit might not be issued on or before the due date. Subsequently a follow-up was issued, but no response was received. STATEMENT OF CAUSE PRIDCO was obtaining all required data for the Program ALN 97.036, and validating all required information as the Compliance Supplement 2025 and the Uniform Guidance version of 2024 requires. The Compliance Supplement was issued on November 27, 2025, affecting the timing of the SEFA preparation in accordance with the requirements. POSSIBLE ASSERTED EFFECT PRIDCO did not comply with the submission date required for the Data Collection Form and Reporting Package, this could affect the continuance and new approvals of Federal funds. In addition, for the next two (2) fiscal years PRIDCO cannot be considered by the auditor as a low risk auditee. IDENTIFICATION OF REPEAT FINDING This is a repeat finding (Finding Reference Number 2024-003). RECOMMENDATIONS We recommend PRIDCO to continue in the implementation of internal controls in accordance with the Uniform Guidance.
#2025-005: Grant Program: All Programs Included in the Schedule of Expenditures of Federal Awards – Assistance Listing # – Various – Data Collection Form Compliance Condition: The Center did not submit the Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) within the required timeframe for both fiscal years ended June 30, 2024, and June 30, 2025. Criteria: Per 2 CFR §200.512(b), the Center must submit the completed DCF and the reporting package to FAC within the earlier of 30 calendar days after receipt of the Auditors’ report(s), or nine months after the end of the audit period. Context: The DCF for the year ended June 30, 2024, was not timely filed during the year ended June 30, 2025. At the time of completion of the audit for the year ended June 30, 2025, the deadline for submission of March 31, 2026, had passed and the DCF is considered not timely filed. Cause: The late submission was due to delays in finalizing the audits. Effect: Failure to submit the DCF timely may delay Federal Agencies’ access to audit results and could impact the Center’s eligibility for future funding. Additionally, an untimely filed DCF results in high-risk auditee status. Recommendation: We recommend the Center implement procedures to ensure timely submission of the DCF and reporting package, including establishing internal deadlines ahead of the federal due date for audit completion. Management Response: See Corrective Action Plan.
Finding 2025-003 – Untimely Submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse (FAC) (Material Weakness): Information on the federal program – Applicable to all federal programs subject to the Uniform Guidance audit requirements because the reporting package and data collection form submission requirements apply to the auditee’s Uniform Guidance reporting package. Criteria – Section 2 CFR §200.512(a) of the Uniform Guidance requires that “the reporting package and the Data Collection Form (DCF) must be electronically submitted by the auditee to the FAC” and that “submission must be completed within 30 calendar days after the auditee receives the auditor’s reports or 9 months after the end of the audit period, whichever is earlier.” Section 2 CFR §200.520 of the Uniform Guidance provides that one of the conditions necessary to qualify as a low-risk auditee is that “the prior 2 years’ audits must have been performed on an annual basis in accordance with the Uniform Guidance, including report submission to the FAC by the due date.” The Uniform Guidance also states that if an auditee expects a late submission, “the suggested way to do so is to contact the federal oversight or cognizant agency for the audit.” Condition – The auditee did not submit its audit reporting package and data collection form to the Federal Audit Clearinghouse within the time frame required by 2 CFR § 200.512(a). Specifically, the 2024 audit reporting package was submitted more than one year after the required due date, the 2023 reporting package was submitted 11 days late, and as of August 2026 the 2025 reporting package has not yet been submitted and is expected to be late. Cause – Based on discussions with management and auditor procedures performed, the auditee did not maintain an effective process to monitor Uniform Guidance reporting deadlines and ensure timely completion and submission of the reporting package and data collection form to the FAC. Effect – Failure to submit the reporting package and data collection form within the required deadline constitutes noncompliance with 2 CFR § 200.512(a). Repeated late submissions may affect the auditee’s ability to qualify as a low-risk auditee because timely FAC submission is one of the required conditions under Section 2 CFR § 200.520 of the Uniform Guidance. Questioned Costs – N/A Repeat Finding – No. However late FAC submissions occurred in prior reporting periods. Auditor’s Perspective – From the auditor’s perspective, repeated late submissions over multiple audit periods indicate a pattern of noncompliance with Uniform Guidance reporting requirements and suggest deficiencies in the auditee’s monitoring controls over regulatory reporting deadlines. The auditor also noted that the Uniform Guidance permits communication with the cognizant or oversight agency when a submission will be late; however, no evidence was provided that such communication occurred for all affected periods reviewed. Auditor's Recommendation – We recommend management implement formal procedures and monitoring controls to ensure completion and electronic submission of the reporting package and data collection form within the deadline established by 2 CFR § 200.512(a). We also recommend management designate responsible personnel to track Uniform Guidance due dates, maintain submission documentation, and communicate proactively with the cognizant or oversight agency if delays are anticipated. View of Responsible Officials – Management agrees with the finding. See the accompanying Corrective Action Plan for the University's planned corrective actions, responsible officials, and implementation dates.
2025-01 Reporting and Internal Control Over Reporting Federal Agency: Various Federal Agencies Federal Program: Various Programs Assistance Listing Number: Various Type of Finding: Compliance and Internal Control Over Compliance Criteria: In accordance with 2 CFR § 200.512, the Organization is required to submit the reporting package and Data Collection Form to the Federal Audit Clearinghouse within nine months after the end of the audit period. Condition: The Organization did not submit its reporting package and Data Collection Form to the Federal Audit Clearinghouse by the required deadline. Cause: Management did not have adequate procedures in place to ensure timely completion and submission of the reporting package and Data Collection Form to the Federal Audit Clearinghouse. Effect: The Organization is not in compliance with federal reporting requirements. Late submission may reduce the timeliness and usefulness of information available to federal agencies and pass-through entities responsible for the oversight of federal awards. Questioned Costs: None Recommendation: We recommend that management establish and implement formal procedures to track all single audit reporting deadlines, assign responsibility for the Federal Audit Clearinghouse submission process, and perform a supervisory review to ensure future reporting packages are submitted timely. View of Responsible Officials and Planned Corrective Action: Management concurs with our recommendation. The Organization has implemented a compliance calendar to monitor federal reporting deadlines and has assigned responsibility for Federal Audit Clearinghouse submissions to the appropriate personnel. Management will also establish a review process to verify that all required filings are completed before applicable due dates.
Criteria - Uniform Guidance 2 CFR 200.512(a) (1) states that the audit report 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. Condition – The financial statements were filed December 18, 2025 in lieu of the due date of September 15, 2024. Effect – Late filing of reports can result in the entity being a high risk auditee. Cause – Management engage an auditor late after the year end. Recommendation – Management should engage the services of an auditor in a sufficient time after the year end, or if possible before the year end.
Information on the Federal Program: Federal Agency: U.S. Department Agriculture Program Name: Intermediary Relending Program AL: 10.767 Federal Award Year: 2025 Federal Agency: U.S. Department of Commerce Program Name: Economic Development Administration AL: 11.307 Federal Award Year: 2025 Criteria: Form RD 4274-4, Section 5.1, requires KVCOG to submit annual audit reports within 90 days following the year-end. Audits must conform to the requirements of 7 CFR 1948.118(b)(4). 2 CFR §200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (FAC) no later than 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period, whichever is earlier. Condition Found: For the year ended June 30, 2024, KVCOG failed to submit the annual audited report within 90 days following year-end. Further, KVCOG failed to submit the data collection form, and the reporting package within nine months after year-end. Context: KVCOG did not have effective internal controls to help ensure timely and accurate preparation of financial information, including account reconciliations. As a result, management did not have the information necessary to complete the FAC filing within the timeframe required by 2 CFR §200.512(a)(1). Questioned Costs: None noted. Cause and Effect: The late submission of the Single Audit report to the FAC creates noncompliance with federal reporting requirements and increases KVCOG’s risk of administrative actions by federal awarding agencies. This may result in delayed acceptance of federal awards, imposition of grant conditions, or restrictions on access to federal funds until the report is submitted and accepted. Identification as a Report Finding, if applicable: N/A Recommendation: KVCOG should implement procedures to ensure the Single Audit reporting package is prepared, reviewed, and submitted to the FAC within required timeframes, including monitoring of statutory deadlines Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan on page 58 Responsible party: Diana Rafuse, Finance Director
2025-018 Audit Report Filing Deadline ALN Title: Drinking Water State Revolving Fund ALN Number: 66.468 Pass-through Entity: Montana Department of Natural Resources and Conservation Condition: The City's fiscal year 2025 Single Audit was not completed and submitted within the required federal and State reporting deadlines. Context: The City was subject to the Single Audit requirements for fiscal year 2025. The need for a Single Audit was not identified until after initial audit planning had begun, which required additional federal audit procedures and reporting beyond those originally planned. The audit and related reporting package were completed after the applicable filing deadline. Criteria: Under 2 CFR 200.512, the audit, data collection form, and reporting package are required to be submitted to the Federal Audit Clearinghouse within 30 calendar days after the auditee receives the auditor's reports or nine months after the end of the audit period, whichever is earlier. For the City's June 30, 2025 fiscal year-end, the nine-month deadline was March 31, 2026. Montana's Local Government Services Bureau also identifies March 31 as the filing date for federal Single Audit reports and requires reports to comply with federal Single Audit requirements and ARM 2.4.411. Effect: The City did not comply with the required federal and State Single Audit reporting deadlines for fiscal year 2025. Cause: The City did not identify that federal expenditures for fiscal year 2025 would require a Single Audit until after the audit planning process had begun. As a result, the additional audit procedures and reporting requirements necessary for the Single Audit were not incorporated into the original audit planning and reporting timeline. Recommendation: We recommend the City establish procedures to monitor federal expenditures throughout the fiscal year and determine whether the Single Audit threshold has been met before yearend audit planning begins. The City should communicate the anticipated need for a Single Audit to its auditor timely so the additional audit procedures and reporting requirements can be incorporated into the audit plan and schedule.
Reference Number: 2025-001 Criteria: In accordance with 2 CFR Part 200, Subpart F (2 CFR 200.512), single audits are due to the Federal Audit Clearinghouse thirty (30) days after receipt of the auditors' reports, but are considered on time if submitted within nine months after their fiscal period end date. Condition: The Organization has not submitted its audit package to the Federal Audit Clearinghouse in a timely manner for the current year, or for the previous three (3) fiscal years. Cause: Controls are not in place to ensure the Organization has submitted their audit package to the Federal Audit Clearinghouse in a timely manner. Effect: The Organization is noncompliant with specific requirements of 2 CFR Part 200, Subpart F (2 CFR 200.512). Repeat Finding from Prior Year: Yes Recommendation: We recommend that the Organization put controls in place to ensure timely filing of the audit package to the Federal Audit Clearinghouse. Organization's Response: The Organization agrees with the auditors' recommendation. During the prior audit periods, delays in completing the audit and submitting the required audit package resulted from organizational and operational challenges, which have recently resulted in changes in leadership and financial operations. The Organization has taken steps to strengthen its financial and compliance processes and will develop a formal audit compliance calendar that identifies all required milestones, responsible parties, and submission deadlines, in coordination with the organization's accountant, bookkeeper, and auditor. The CEO and the Board will monitor progress to ensure that future audit packages are submitted to the Federal Clearinghouse within the required timeframe.
Criteria: Code of Federal Regulations (CFR), Title 2, Part 200 Section 200.512(a)(l) requires Single Audit reports to be submitted within the earlier of30 days after receipt of the audit by the agency, or nine months after the end of the audit period. Condition: The June 30, 2025 audit report was not submitted on or before its deadline. Cause: The delay was primarily due to a lack of timely coordination and responsiveness from management during the audit process, including delays related to the transition of a new Chief Financial Officer. 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 offederal grants' terms and conditions. Recommendation: We recommend that management implement procedures to ensure timely coordination with auditors, especially during periods of leadership transition. Clearly defined internal timelines and accountability for providing audit documentation will help support timely completion and submission of future audits. Management's Response: Leadership recognizes the importance of timely Single Audit submissions and is implementing improvements in internal coordination and communication processes. The finance department is currently undergoing systems and procedural changes to ensure timely completion of the audit and compliance with federal requirements going forward.
Condition: The auditee did not submit its data collection form and reporting package to the Federal Audit Clearinghouse by the required deadline for the fiscal year ended June 30, 2025. Criteria : 2 CFR 200.512(a) requires the auditee to submit the audit, data collection form, and reporting package to the Federal Audit Clearinghouse (FAC) no later than the earlier of 30 calendar days after receipt of the auditor’s reports or (2) nine months after the end of the audit period, unless an extension has been authorized by the cognizant or oversight agency for audit. Cause: The delay in submission was due to the audited financial statements not being prepared in a timely manner. As described in Finding 2025-001, the auditee has a material weakness in internal control over financial reporting related to the financial statement preparation process, including inadequate review procedures and insufficient resources to ensure timely completion of the audited financial statements. Effect: Because the audited financial statements were not completed timely, the auditee was unable to meet the FAC submission requirements under 2 CFR 200.512. This resulted in noncompliance with federal regulations. Repeat Finding: No. Recommendation: We recommend the auditee strengthen its internal control over financial reporting by implementing procedures to ensure timely preparation, review, and issuance of the audited financial statements. This should include clearly defined responsibilities, enhanced review controls, and a formal closing and reporting timeline designed to meet Uniform Guidance reporting deadlines. View of Responsible Officials: Management acknowledges the reporting package and Data Collection Form were not submitted to the Federal Audit Clearinghouse by the required deadline due to delays in completing the audited financial statements, as discussed in Finding 2025-001. Management has addressed the staffing challenges which caused the delay by evaluating resource needs, filling key positions, and improving the assignment of financial reporting responsibilities. These actions are intended to support the timely completion of the annual audit and ensure compliance with future Federal Audit Clearinghouse reporting deadlines.
Finding 2025-001 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2025 Federal agency: United States Department of Agriculture Compliance Requirement: Activities allowed or unallowed, allowable costs/ cash management, eligibility, equipment, period of performance, procurement, program income, reporting, special tests Questioned Costs: None Criteria: In accordance with 2 CFR §200.512(a), non-Federal entities that expend $750,000 or more in Federal awards during the fiscal year must submit the audit report to the FAC Federal Audit Clearinghouse (FAC) 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. Additionally, program-specific requirements may mandate timely submission to other agencies, including Rural Development (RD). Condition and Context: The auditee did not submit the required audit reports to the Federal Audit Clearinghouse (FAC) and Rural Development (RD) in a timely manner. Specifically: The 2023 Audit Report was not submitted to the FAC as required under 2 CFR Part 200, Subpart F. The 2024 Audit Report was submitted past the regulatory deadline to both the FAC and RD. Cause: The delays and omissions appear to have resulted from the prior auditor not being able to submit the Audit Report due to technical issues and the Rural Department not providing the loan statements in a timely manner. Effect: Failure to submit audit reports timely impedes the federal government’s oversight responsibilities, potentially affects the auditee's risk assessment, and may jeopardize continued funding eligibility. Recommendation: Management should establish and adhere to a documented internal timeline to ensure timely audit preparation and submission. This should include calendar reminders, assigned staff responsibilities, and periodic checks throughout the audit cycle. Communication with the auditor should begin early in the fiscal year to ensure deadlines are met.
Single Audit Data Collection Form was not filed by the Due Date. Condition: The data collection form for the Single Audit ended May 31, 2024 was not submitted to the Single Audit Clearinghouse within 30 days of issueance of the report. Criteria: 2 CFR Sction 200.512(b) provides for a form, referrred to as the date collection form, to be prepared at the completion of each audit and submitted by the auditee to the Federal Audit Clearing house the earlier of 30 calendar days after the receipt of the auditor's report or nine months after the end of the audit period. Cause: The data collectin package was certified on January 16, 2025 which was not within 30 calendar days after the reeipt of the auditor's reports. Effect: The Organization has not met the reporting requirements related to timely submission of the data collection form required for a SIngle Audit. Therefore, per 2 CFR second 200.520, the COmpany will not meet the low-risk auditee criteria for the next SIngle Audit that requires submission of the data collection form and reporting package. Recommendation: We recommend that the Organization develop specific procedures to ensure that the data collection form is submitted prior to February 28th reporting deadline or within 30 days of the receipt of the auditor's report. Response: The Organization will work with the audit firm to ensure the data collection form is submitted before the deadline in the future.
Current Year Findings Finding 2025-001 – Timely Filing of Single Audit Report Type of Finding Internal Control - Significant Deficiency and Compliance – Other Matter Criteria or Specific Requirement According to 2 CFR Section 200.512(a) of the Uniform Guidance, auditees are required to submit the audit report and Data Collection Form (DCF) to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after the reports are received from the auditor or nine months are the end of the audit period. Condition The DCF was not submitted by its due date of February 28, 2025. Cause The DCF was not completed and available to be submitted by the due date due to delays by management in providing audit requests. Effect or Potential Effect Failure to submit the DCF and single audit report timely constitutes noncompliance with federal audit requirements and could impact subsequent federal funding. No questioned costs are reported as this requirement is administrative in nature. Recommendation The Organization should enhance current internal controls ensuring the timeliness of preparation and accuracy of financial information to ensure the DCF and single audit report are submitted by the due date. Views of Responsible Officials Management’s corrective action plan is included at the end of this report.
Condition: The Village met the requirements for a Single Audit and is required to submit its annual audited financial statements and single audit reporting requirements within 9 months of the Village's fiscal year end. The Village did not complete and submit its single audit by February 28, 2026. Criteria: The requirement in 2 CFR 200.512(a)(1) states that single audits are due to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or 9 months from the Village's fiscal year end. This reporting package, is required to be submitted electronically and includes the financial statements and a supplementary schedule of expenditures of federal awards, auditor’s reports, a summary schedule of prior audit findings and a corrective action plan, if necessary. Cause: The delay in the timely submission of the audited financial statements and single audit reporting requirements was primarily due to a combination of factors impacting the ability to complete the necessary procedures within the required timeframe.
Condition The Village of St. Anne (Village) did not file its Fiscal Year 2024 single audit with the Federal Audit Clearinghouse in a timely manner. The audit was filed 292 days late. Cause Miscommunication between the Village of St. Anne and its prior audit firm resulted in the late filing of the fiscal year 2024 single audit. Criteria For the Fiscal Year ending April 30, 2024, 2 CFR Part 200, Subpart F, specifically § 200.512, required non-federal entities that expended over $750,00 in federal awards to submit their single audit to the Federal Audit Clearinghouse. Auditees must electronically submit the required reporting package and data collection form within the earlier of 30 calendar days after receiving the auditor's report or nine months after the end of the audit period. For fiscal years beginning on or after October 1, 2024, the threshold was increased to $1,000,000. Effect Not filing its Fiscal Year 2024 single audit with the Federal Audit Clearinghouse in a timely manner is a violation of federal law. Recommendation We recommend the Village implement procedures to ensure the timely filing of all single audits with the Federal Audit Clearinghouse. Management’s Response Village management will implement procedures to ensure that the Village’s single audits are filed with the Federal Audit Clearinghouse in a timely manner.
Federal Program: U.S. Department of Agriculture: Water and Waste Disposal Systems for Rural Communities (10.760). Criteria: Per Title 2 CFR 200.512(d), "the data collection form 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. Condition: The City did not file their Data Collection form for 2024 on time. Cause: The City's April 30, 2024 audit was not completed until August 15, 2025 resulting in the data collection form being filed September 3, 2025. This was the result of changing accounting software and timeliness of audit requests. Effect: The District is not in compliance with Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Questioned Costs: None. Context: The report was filed as soon as the audit of the financial statements was complete, but this was after the reporting deadline. Repeat Finding: No. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations guidelines. Views of Responsible Officials: We agree with the finding and the Data Collection form will be filed in a timely manner.
2025-003 Report Submission Compliance Criteria: According to the Uniform Guidance (2 CFR 200.512(a)(1)), a Single Audit’s required elements—including the audit report, reporting package, and Data Collection Form (SF-SAC)— must be submitted within 30 calendar days after the auditee receives the auditor’s reports or nine months after the end of the audit period, whichever is earlier. Condition: Per the Federal Audit Clearinghouse records, the Village’s Data Collection Form for the fiscal year ending April 30, 2024, was submitted on April 22, 2025, which is past the nine month deadline. This is deemed to be an instance of noncompliance with applicable reporting requirements. Cause: The delay occurred because the issuance of the financial statements was significantly postponed. This postponement caused a corresponding delay in the completion and issuance of the Single Audit report, which in turn resulted in late submission to the Federal Audit Clearinghouse. Effect: The late filing constitutes noncompliance with Uniform Guidance requirements, potentially impacting federal oversight and risking sanctions or additional monitoring by awarding agencies. Recommendation: We recommend the Village: 1. Implement procedures to ensure timely preparation and issuance of financial statements, as these drive the Single Audit timeline. 2. Establish a compliance calendar that tracks both financial statement and audit report deadlines, including the nine-month submission requirement. 3. Assign responsibility to a designated compliance officer to monitor progress and escalate delays promptly. Views of Responsible Officials: Management agrees with the finding.
FINDING 2025-003 – LATE REPORTING Identification of Federal Program U.S. Department of Health and Human Services All Programs SIGNIFICANT DEFICIENCY, NONCOMPLIANCE Criteria – Uniform Guidance requires nonfederal entities to submit the reporting entity’s Uniform Guidance reporting package, including the audit report and completed Federal Audit Clearinghouse (FAC) Data Collection Form, to the FAC within the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after fiscal year‑end (2 CFR 200.512(a)). Timely submission of the reporting package is required to facilitate federal oversight of award compliance. Condition – The Organization did not submit its required Uniform Guidance reporting package, including the reporting entity’s audit report and the FAC Data Collection Form, within the required submission timeframe. Specifically, the Uniform Guidance audit and related FAC Data Collection Form were submitted after the earlier of (1) 30 calendar days after receipt of the auditor’s reports or (2) nine months after the end of the reporting entity’s fiscal year. Questioned Costs – No questioned costs were identified as a result of this finding. Context – The condition was identified during Uniform Guidance audit planning procedures regarding auditee risk assessment. Sampling was not utilized. Effect or Potential Effect – Failure to submit the Uniform Guidance audit and FAC Data Collection Form timely increases the risk of noncompliance with Uniform Guidance reporting requirements and may result in delayed federal oversight, increased monitoring by the awarding agency, or the imposition of additional administrative conditions. Cause – Due to a delay in the compiling of records related to the audit, the Organization was not in compliance with the reporting requirements. Repeat Findings – This is not a repeat finding. Recommendation – The Organization should strengthen internal controls over Uniform Guidance audit reporting by implementing procedures to track submission deadlines, assigning responsibility for timely filing of the audit report and FAC Data Collection Form, and establishing management review processes to ensure compliance with Uniform Guidance reporting requirements. Views of Responsible Officials – Management agrees with the finding and the auditors’ recommendation. See Corrective Action Plan at the end of the report.
Finding Number: 2025 002 Finding Type: Noncompliance Information on the Federal Program: N/A – Not program specific Criteria: 2 CFR §200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (FAC) no later than 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period, whichever is earlier. Condition: FAC filing for the fiscal year ended March 31, 2025 was submitted after the required deadline. Cause: The Organization did not have effective internal controls to ensure timely and accurate preparation of financial information, including account reconciliations (see prior year Finding 2024-002). As a result, management did not have the information necessary to complete the FAC filing within the timeframe required by 2 CFR §200.512(a)(1). Effect: The late submission of the Single Audit report to the Federal Audit Clearinghouse creates noncompliance with federal reporting requirements and increases the Organization’s risk of administrative actions by federal awarding agencies, including Health Resources and Services Administration (HRSA). This may result in delayed acceptance of federal awards, imposition of grant conditions, or restrictions on access to federal funds until the report is submitted and accepted. Questioned Costs: None Repeat Finding: Yes, 2024 002 Recommendation: The Organization should implement procedures to ensure the Single Audit reporting package is prepared, reviewed, and submitted to the FAC within required timeframes, including monitoring of statutory deadlines Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. Management is implementing procedures to complete and review account reconciliations and financial reporting on a monthly basis with appropriate oversight. These steps are intended to support timely submission of future Single Audit reporting packages to the FAC+.