2023 - 003 - Reporting (Material weakness in Internal Controls over Compliance) - Repeated and Modified (Prior Year Finding 2022-002) Federal program information: Funding Agency: Program Title: Federal Assistance Listing Number: U.S. Department of Housing and Urban Development (Follow-up on PY finding) Indian Housing Block Grant 14.867 U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds 21.027 Condition: The Governmental Department did not submit their required Federal Financial Reports (SF-425) and Project and Expenditure Report within the required three and one month's respectively after the end of fiscal year. In addition, the reporting package and data collection form for the year ended December 31, 2023, was not filed by the deadline of September 30, 2024, to the Federal Audit Clearinghouse. Criteria: Title 2 CFR 200.327 requires programs to submit financial information to the funding agency using standard financial reporting forms. These reports are to be submitted by the required due date and be accurately completed and supported by the underlying accounting records. 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. Cause: The Governmental Department policies were not always followed or controls were not in place to ensure complete and accurate information could be provided timely. Effect: The Governmental Department was not in compliance with federal regulations and guidelines for (SF-425), Project and Expenditure Report and single audit submissions. Auditor's Recommendation: The Governmental Department should implement controls for filing the Federal Financial Reports, (SF- 425), Project and Expenditure Report, and the single audit report in a timely manner. Management’s Response: Due to delays caused by the pandemic, in conjunction with some major turnover in fiscal staff the Tribe fell behind in completing its annual audits, and other required grant reporting. In the first half 2023 the Tribe was able to hire a quarter-time CFO and fill one position in the department. Since the department had staff, they were able to complete the 2022 outstanding audit. The new staff was learning the process of grant reporting and other compliance matters, and at the time of this report have made improvements to implement internal controls to assist with the regulation of all compliance matters. 2022 - 003 - Reporting (Material weakness in Internal Controls over Compliance) - Repeated (Prior Year Finding 2021-003) - Cont'd Estimated Completion Date: March 03, 2025-Due to the newly elected Tribal Administration and restructuring of positions as well as training opportunities for fiscal and the executive committee. Responsible Party: The Tribal Administrator in collaboration with the Cahto Executive Committee is responsible to ensure the Fiscal department, the Department Directors and management are trained and adhere to existing policies and procedures.
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse 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 Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse 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 Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse 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 Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse 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 Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding: 2023-002 CFDA Number: 14.218 Program Name: Community Development Block Grants Federal Agency: U.S. Department of Housing and Urban Development Type of Finding: Federal Award Finding Compliance Requirement: Reporting Questioned Costs: N/A Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse 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 Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine months after the end of the audit period. Cause The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily due to delays in management's preparation of the financial records. The accounting records were not finalized in a timely manner, which prevented the audit team from initiating audit procedures with sufficient time to meet the required submission deadline. Effect: The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance. Recommendations: We recommend that policies and procedures be implemented to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management's Response Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will ensure audited financials are submitted timely going forward.
Finding 2023-01 Finding Resolution Status: Resolved Condition: The auditee did not submit the required reporting package, including the audited financial statements and Data Collection Form (SF-SAC), to the Federal Audit Clearinghouse within nine months after the end of the fiscal year, as required by 2 CFR § 200.512(a). 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 reporting package to the FAC no later than nine months after the end of the audit period. Timely submission ensures transparency and allows federal agencies to evaluate compliance and financial integrity. Cause: The delay in submission was due to internal administrative oversight and lack of a formalized deadline monitoring process for federal reporting obligations. Effect or Potential Effect: Failure to submit the reporting package in a timely manner constitutes noncompliance with Uniform Guidance requirements. This may affect the entity’s eligibility for future federal funding and could result in sanctions or increased oversight by funding agencies. Questioned costs: None. This finding relates to reporting noncompliance and not to disallowed costs. Recommendations: We recommend that the auditee implement a formal compliance calendar or tracking system to monitor federal reporting deadlines. Management should designate a responsible individual to ensure that all reporting packages are submitted on time in accordance with Uniform Guidance requirements. Reporting views of responsible officials: Management agrees with the finding. The delay was unintentional and due to internal miscommunication. The Organization has since created a compliance calendar and assigned the Finance Director to oversee federal reporting compliance to ensure timely submissions in the future. Concur or do not concur with this finding: Concur.
Finding 2023-005: Late Submission of Reporting Package Federal Department: U.S. Department of Education Pass-through Agencies: State of South Carolina Department of Education, Minnesota Department of Education, and DC Office of the State Superintendent of Education Federal Program Name: Twenty-First Century Community Learning Centers Assistance Listing Number: 84.287 Type of Finding: Material Weakness in Internal Control over Compliance Other Matters Criteria 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F – Audit Requirements, Section 200.512, Report submission, states “(a) General. (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/Context CDF did not submit its Single Audit Package in a timely manner as required by federal regulations. The federal reporting deadline for CDF’s Single Audit Reporting Package for the year ended December 31, 2023, was September 30, 2024. As of the audit report date, CDF has not yet submitted its Single Audit Reporting Package. Cause Based on discussions with management, this finding occurred due to a disruption in the accounting platform because of staff turnover, which resulted in the financial and compliance audits being completed later than anticipated. Effect The late submission of the Single Audit Package is a violation of federal regulations and impairs grantor agencies’ ability to monitor federally funded program. As a result, CDF is designated a high-risk auditee until it accomplishes timely submission of its Single Audit Package for two consecutive years. Questioned Costs Not applicable. Identification of Repeat Finding Repeated (Prior Finding No. 2021-002 and 2022-004). Recommendation We recommend that CDF implement procedures to ensure timely completion and submission of its Single Audit Reporting Package in accordance with 2 CFR Part 200.512. Views of Responsible Officials and Planned Corrective Action CDF agrees with the finding and recommendation. See CDF’s Corrective Action Plan on pages 18-20.
Finding 2023-005: Late Submission of Reporting Package Federal Department: U.S. Department of Education Pass-through Agencies: State of South Carolina Department of Education, Minnesota Department of Education, and DC Office of the State Superintendent of Education Federal Program Name: Twenty-First Century Community Learning Centers Assistance Listing Number: 84.287 Type of Finding: Material Weakness in Internal Control over Compliance Other Matters Criteria 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F – Audit Requirements, Section 200.512, Report submission, states “(a) General. (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/Context CDF did not submit its Single Audit Package in a timely manner as required by federal regulations. The federal reporting deadline for CDF’s Single Audit Reporting Package for the year ended December 31, 2023, was September 30, 2024. As of the audit report date, CDF has not yet submitted its Single Audit Reporting Package. Cause Based on discussions with management, this finding occurred due to a disruption in the accounting platform because of staff turnover, which resulted in the financial and compliance audits being completed later than anticipated. Effect The late submission of the Single Audit Package is a violation of federal regulations and impairs grantor agencies’ ability to monitor federally funded program. As a result, CDF is designated a high-risk auditee until it accomplishes timely submission of its Single Audit Package for two consecutive years. Questioned Costs Not applicable. Identification of Repeat Finding Repeated (Prior Finding No. 2021-002 and 2022-004). Recommendation We recommend that CDF implement procedures to ensure timely completion and submission of its Single Audit Reporting Package in accordance with 2 CFR Part 200.512. Views of Responsible Officials and Planned Corrective Action CDF agrees with the finding and recommendation. See CDF’s Corrective Action Plan on pages 18-20.
Finding 2023-005: Late Submission of Reporting Package Federal Department: U.S. Department of Education Pass-through Agencies: State of South Carolina Department of Education, Minnesota Department of Education, and DC Office of the State Superintendent of Education Federal Program Name: Twenty-First Century Community Learning Centers Assistance Listing Number: 84.287 Type of Finding: Material Weakness in Internal Control over Compliance Other Matters Criteria 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F – Audit Requirements, Section 200.512, Report submission, states “(a) General. (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/Context CDF did not submit its Single Audit Package in a timely manner as required by federal regulations. The federal reporting deadline for CDF’s Single Audit Reporting Package for the year ended December 31, 2023, was September 30, 2024. As of the audit report date, CDF has not yet submitted its Single Audit Reporting Package. Cause Based on discussions with management, this finding occurred due to a disruption in the accounting platform because of staff turnover, which resulted in the financial and compliance audits being completed later than anticipated. Effect The late submission of the Single Audit Package is a violation of federal regulations and impairs grantor agencies’ ability to monitor federally funded program. As a result, CDF is designated a high-risk auditee until it accomplishes timely submission of its Single Audit Package for two consecutive years. Questioned Costs Not applicable. Identification of Repeat Finding Repeated (Prior Finding No. 2021-002 and 2022-004). Recommendation We recommend that CDF implement procedures to ensure timely completion and submission of its Single Audit Reporting Package in accordance with 2 CFR Part 200.512. Views of Responsible Officials and Planned Corrective Action CDF agrees with the finding and recommendation. See CDF’s Corrective Action Plan on pages 18-20.
2023-002 LATE FILING OF THE SINGLE AUDIT REPORTING PACKAGE WITH THE FEDERAL AUDIT CLEARINGHOUSE Funding agency: All included on the Schedule of Expenditures of Federal Awards Federal Program Title and Assistance Listing Number: All included on the Schedule of Expenditures of Federal Awards Type of Finding: Significant Deficiency, Non-compliance Compliance Area: Reporting Questioned Costs: None Condition SFI did not submit their Single Audit reporting package (financial statements, data collection form, and corrective action plan) within the required time period. The single audit reporting package was due September 30, 2023. Management's Progress in 2023: The Board did not make progress towards resolving this prior year finding. 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 grantors. Cause 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.
2023-002 LATE FILING OF THE SINGLE AUDIT REPORTING PACKAGE WITH THE FEDERAL AUDIT CLEARINGHOUSE Funding agency: All included on the Schedule of Expenditures of Federal Awards Federal Program Title and Assistance Listing Number: All included on the Schedule of Expenditures of Federal Awards Type of Finding: Significant Deficiency, Non-compliance Compliance Area: Reporting Questioned Costs: None Condition SFI did not submit their Single Audit reporting package (financial statements, data collection form, and corrective action plan) within the required time period. The single audit reporting package was due September 30, 2023. Management's Progress in 2023: The Board did not make progress towards resolving this prior year finding. 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 grantors. Cause 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.
Criteria: 2 CFR Section 200.512 states the entity’s 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). Additionally, entities are required to submit annual Federal Financial Reports within 90 days of the reporting period. Condition: The Organization’s financial information for the periods ending December 31, 2021, 2022, and 2023, were not finalized in a timely manner. Each was finalized during July 2025, which was after the reporting requirement for each period. Cause: The Organization was unaware of the audit requirement. Prior to the March 2021 award, the Organization was not subject to any reporting requirements. Effect: Failure to timely submit reports results in noncompliance with reporting requirements. Questioned Costs: None Context: The Organization’s financial information was not finalized until July 2025, which was after each period’s reporting requirement.
2023-002 – Failure to timely file the audit, data collection form, and reporting package in accordance with 2 CFR section 200.512(a). Condition: Basic Health International, Inc. did not identify the need for a single audit for the year ended December 31, 2023 on a timely basis. Criteria: CFR section 200.512(a) requires Basic Health International, Inc. to submit its audit, data collection form, and reporting package to the Federal Audit Clearinghouse within 30 calendar days after receiving the auditor’s report, or nine months after the end of the audit period (whichever is earlier). Cause: Basic Health International, Inc. did not identify the need for a single audit for the year ended December 31, 2023 on a timely basis. Effect: Basic Health International, Inc. is not in compliance with the filing requirements of its federally funded programs. Recommendation: Develop processes and procedures to ensure that Basic Health International, Inc.’s audit, data collection form, and reporting package are submitted to the Federal Audit Clearinghouse within 30 calendar days after receiving the auditor’s report, or nine months after the end of the audit period (whichever is earlier) in accordance with 2 CFR section 200.512(a). Views of Responsible Officials and Planned Corrective Actions: Basic Health International, Inc. agrees with the finding and has a plan in place to develop and implement procedures to correct the finding.
I noted that the AKNWRC did not submit their audit within the required 9 month timeframe of year end. Per 2 CFR, Section 200.512, the AKNWRC must submit their audit within 9 months of their fiscal year end. There were no questioned costs. Final accounting adjustments were not made timely in order to complete the audit in a timely manner. Management will ensure their 2024 audit preparation will be performed timely and will be submitting it well within the required 9 month timeframe.Audit was late. Context is not applicable. Management has already started work on their 2024 audit and will be submitting it within the required 9 month timeframe. this was not a repeat finding.
I noted that the AKNWRC did not submit their audit within the required 9 month timeframe of year end. Per 2 CFR, Section 200.512, the AKNWRC must submit their audit within 9 months of their fiscal year end. There were no questioned costs. Final accounting adjustments were not made timely in order to complete the audit in a timely manner. Management will ensure their 2024 audit preparation will be performed timely and will be submitting it well within the required 9 month timeframe.Audit was late. Context is not applicable. Management has already started work on their 2024 audit and will be submitting it within the required 9 month timeframe. this was not a repeat finding.
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Late Single Audit Submission Condition: The County submitted the required 2022 reporting package and data collection form to the Federal Audit Clearinghouse after the required deadline. Criteria: 2 CFR § 200.512(a) requires that the auditee submit the data collection form and the reporting package to the 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. Cause: The County’s 2022 audit was completed in January 2024 after the reporting deadline. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County implement procedures to ensure timely submission of all future reporting packages to the FAC, including calendar reminders and assignment of submission responsibility to specific personnel. Management Response: The County acknowledges the finding.
Late Single Audit Submission Condition: The County submitted the required 2022 reporting package and data collection form to the Federal Audit Clearinghouse after the required deadline. Criteria: 2 CFR § 200.512(a) requires that the auditee submit the data collection form and the reporting package to the 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. Cause: The County’s 2022 audit was completed in January 2024 after the reporting deadline. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County implement procedures to ensure timely submission of all future reporting packages to the FAC, including calendar reminders and assignment of submission responsibility to specific personnel. Management Response: The County acknowledges the finding.
Late Single Audit Submission Condition: The County submitted the required 2022 reporting package and data collection form to the Federal Audit Clearinghouse after the required deadline. Criteria: 2 CFR § 200.512(a) requires that the auditee submit the data collection form and the reporting package to the 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. Cause: The County’s 2022 audit was completed in January 2024 after the reporting deadline. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County implement procedures to ensure timely submission of all future reporting packages to the FAC, including calendar reminders and assignment of submission responsibility to specific personnel. Management Response: The County acknowledges the finding.
Finding 2023-001 - U.S. Department of Housing and Urban Development: HOME Investment Partnerships Program, Assistance Listing #14.239 Statement of Condition: The Corporation did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) within the required due dates for the single audit for the year ending December 31, 2022. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. Additionally, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Timing delays in receipt of information required to complete the audit performed under Uniform Guidance for the year ending December 31, 2022. Context: A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC to determine if the Corporation qualified as a low-risk auditee. A single audit was performed under the Uniform Guidance for the year ending December 31, 2022 and 2021, however, the data collection form was not submitted to the FAC within the required due dates for the years ending December 31, 2022 and 2021. Questioned Costs: N/A Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC within the required due dates each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection form for the year ended December 31, 2022 was not submitted to the FAC within the required due dates. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. The data collection form for the year ending December 31, 2022 was submitted to the FAC on August 27, 2024.
Section III - Major Federal Award Program Findings and Questioned Costs Finding No. 2023-003 Federal Agency: United States Department of Agriculture Federal Program Title and ALN: All Federal Programs Compliance Requirement: Reporting (Single Audit Report) Type of Finding: Significant Deficiency (SD) and Instance of Noncompliance (NC) Criteria The Uniform Guidance 2 CFR Section 200.512(a) requires the audit to be completed, and the reporting package and data collection form be submitted to the Federal Audit Clearinghouse (“FAC”) within the earlier of 30-day after the receipt of the auditor’s reports or nine months after the end of the audit period. Statement of Condition The Data Collection Form and the Reporting Package for the year ended December 31, 2023, was not timely submitted to the federal government. The Data Collection Form and the Reporting Package must be submitted by the auditee within the earlier of 30-day after the receipt of the auditor’s reports or nine (9) months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. No extension from the cognizant or oversight agency was noted. Cause of Condition The Organization has not been able to provide the necessary information for the preparation of the single audit report on a timely basis in order to complete its reporting requirement for the fiscal year ended on December 31, 2023. Effect of Condition The Organization is not complying with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants. Recommendation The Organization should adopt policies and procedures to ensure that the annual audit is performed and submitted in a timely manner. 28 Section III - Major Federal Award Program Findings and Questioned Costs (Continued) Management Response Management concurs with the findings. External auditors were contracted to update the financial statements for 2023, 2024 and 2025 is in process to prepare the single audit report in a timely manner. Responsible Officials Mr. Marcos Rivera CEO
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to 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. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to 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. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to 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. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to 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. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to 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. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to 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. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to 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. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-003: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to 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. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The audit was not completed by September 30, 2024, due to timeliness of information being available to complete the audit and incorrect identification of reporting period. Effect: SHNLFB was not in compliance with the Uniform Guidance (2 CFR 200.512). Questioned costs: None Context: The December 31, 2023 single audit reporting package. Repeat finding: Yes Recommendation: We recommend SHNLFB continue its efforts to ensure the reporting package is filed timely with the Federal Audit Clearinghouse. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Condition/Context The Corporation did not submit the Data Collection Form for the year ended December 31, 2023 to the OMB in a timely manner as required by Uniform Guidance section 2 CFR 200.512.
Condition/Context The Corporation did not submit the Data Collection Form for the year ended December 31, 2023 to the OMB in a timely manner as required by Uniform Guidance section 2 CFR 200.512.
Finding 2023-001: The Organization did not timely submit audited financial statements to the Office of Management and Budget (OMB) Agency: U.S. Department of Housing and Urban Development Federal program: Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (CDBG-DR) ALN: 14.269 Compliance requirement: Reporting Category: Compliance Questioned Costs: None Repeat finding: No Criteria: Under federal law (2 CFR §200.512), The Organization is required to submit audited financial statements to OMB 30 days after the date of the auditors’ report, or nine months after the fiscal year end, whichever comes first. Condition: The Organization did not submit audited financial statements to OMB for the year ended December 31, 2023 before due date. Effect: The Organization is not in compliance with reporting requirement as specified by federal law (2 CFR §200.512). Cause: The Organization did not have systems in place to submit the audited financial statements within the required time period. Recommendation: Auditor recommends management implement systems to ensure audited financial statements are submitted to OMB within the required time period.
CONDITION: The PALM did not engage a Certified Public Accountant qualified to perform a Single Audit for the year ending December 31, 2023 until the year ending December 31, 2025. The PALM had expenditures of federal awards exceeding the Single Audit criteria during the year ending December 31, 2023. As a result, the 2023 data collection form was submitted beyond the Uniform Guidance deadline. CRITERIA: Uniform Guidance (2 CFR § 200.512) requires auditees to provide necessary data for the audit and to submit the audit reporting package (including the data collection form) within nine months of the fiscal year end or 30 days after receiving the auditor's report. CAUSE: The auditee's internal control over data collection for grant programs was deficient, lacking clear processes and timelines. EFFECT: The data collection form was submitted to the federal audit clearinghouse late. The PALM was not in compliance with Uniform Guidance. RECOMMENDATION: We recommend that the PALM continue to engage a Certified Public Accountant to conduct a Single Audit as long as the PALM meets the Single Audit criteria. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: The PALM agrees with the finding, and corrected it to have the 2024 data collection form submitted before the deadline. QUESTIONED COSTS: $0
Finding 2023-004 Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Interior and U.S. Department of the Treasury Federal Program: Aid to Tribal Governments (ATG); Consolidated Tribal Government (CTG); and Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), respectively ALN: 15.020 (ATG); 15.021 (CTG); and 21.027 (CSLFRF), respectively Award Numbers: A19AV00203 (ATG); A19AV00203 and A22AV00218 (CTG); and SLFRP4178/4850 (CSLFRF), respectively Award Year: 2021 (ATG); 2021 and 2022 (CTG); and 2021 (CSLFRF), respectively 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 Village 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: Due to high employee turnover, the Village was not able to complete the audit before the Uniform Guidance deadline. Effect: The Village was not in compliance with reporting requirements. Questioned Costs: None noted. Repeat finding: This is a repeat of Finding 2022-005, and since it is a repeat finding we believe this to be a systemic issue. Recommendation: We recommend the Village adhere to Uniform Guidance reporting requirements. Management’s Response: Management concurs with the finding. See Corrective Action Plan.
Federal Program – Housing Voucher Cluster 14.871 & 14.879 – Material Weakness Criteria or Specific Requirement – The Uniform Guidance requires all entities that expend in excess of $750,000 to file audited financials statements and Data Collection Form within 9 months of year-end. (2 CFR Section 200.512). Condition – The Authority’s December 31, 2023 audited financial statements were not filed with the Federal Audit Clearinghouse within nine months of year-end. Cause – Turnover in staffing and lack of oversight led to information not being ready for audit in a timely manner. Questioned Costs – Not applicable Context – The audited financial statements were note submitted timely. Effect –The Authority could have had federal funding delayed or reduced. Recommendation – We recommend that the Authority implement internal controls to ensure reporting is filed timely. Repeat Finding – No Views of Responsible Officials – The Authority recognizes the deficiency and plans to implement the auditor’s recommendation.
Condition: The County did not ensure its Data Collection Form was submitted to the Federal Audit Clearinghouse in a timely manner. Criteria: 2 CFR 200.512 requires the Data Collection Form to be submitted within 9 months after the end of the audit period. Effect: The County is not in compliance with the Single Audit Act and Uniform Guidance regulations. Cause: In our discussions with the County Officials, they stated the county very seldom reaches the Single Audit Act threshold of spending $750,000 in Federal Awards and was not aware the Data Collection Form was required and therefore was not aware of the 9 month after the end of the audit period reporting requirement. Questioned Cost: The finding did not result in questioned cost. Recommendations: We recommend the County Commission instruct the County Clerk to ensure when the County spends more than $750,000 in Federal Awards, an audit is requested in sufficient time to complete the audit and submit the Data Collection Form, before the 9 month after the end of the audit period. Managements Response: The County Commission agreed with the audit finding and has implemented a process to ensure Data Collection Form information is submitted within the 9 month time frame.
2023-004: Late Submission of Audit Report to the Federal Audit Clearinghouse (Significant Deficiency - Reporting Compliance Area) Federal Program: All Federal Programs Criteria: The Uniform Guidance, specifically 2 CFR 200.512(a), establishes the filing requirements for the submission of single audits to the Federal audit clearing house and indicates that the single audit reporting package must be submitted 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first. Condition: The single audit reporting package for the College's year ended December 31, 2023, was due to the Federal audit clearinghouse by September 30, 2024. However, the College's data collection form for 2023 was not submitted by September 30, 2024. Cause: During the 2023 audit process, the College did not provide supporting documentation for audit requests in a timely manner, which caused significant delays in completing the audit process. Effect or Potential Effect: Not timely filing the single audit reporting package is indicative of timeliness issues with the audit process. Questioned Costs: None. Context: As a result of delays in the completion of the 2023 audit, the single audit reporting package for the year ended December 31, 2023, was not submitted timely. Identification as a Repeat Finding, if Applicable: Not a repeat finding.Recommendation: We recommend that management implement procedures and control processes to ensure that future audits are completed timely so that the single audit reporting package is submitted by the appropriate deadline of either 30 days after the date of the auditor's report(s) or 9 months after the end of the fiscal year, whichever comes first.
Finding 2023-001 Material Weakness and Non-compliance U.S. Department of Treasury - Coronavirus State and Local Fiscal Recovery Funds AL# 21.027, COVID-19 State of Ohio, 2022-AR-CVI-1164, Grant period 1/1/23-12/31/23 L - Reporting U.S. Department of Justice - Crime Victim Assistance AL# 16.575 State of Ohio, 2023-VOCA-135113053, Grant period 1/1/23-9/30/23 State of Ohio, 2024-VOCA-135508432, Grant period 10/1/23-12/31/23 L - Reporting Criteria: The Uniform Guidance (2 CFR 200.512) requires the single audit to be completed and the data collection form and reporting package to 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. Condition: The submission of the December 31, 2023 single audit reporting package should have been submitted by September 30, 2024. Cause: The single audit was not completed by September 30, 2024 due to staff turnover and incorrect determination of audit requirements. Effect: Late completion of the single audit and late filing of the data collection form Questioned Costs: None Context/Sampling: N/A Repeat Finding from Prior Year: No Recommendation: The Organization should establish procedures to ensure that audit requirements are properly determined and that the audit is completed timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan to have future audits completed by the due date.
Federal agency name: U.S. National Science Foundation, U.S. Department of Commerce & National Aeronautics and Space Administration Federal program title: Geosciences, Computer and Information Science and Engineering, Office of International Science and Engineering, NOAA – Cooperative Institute & National Aeronautics and Space Administration AL No.: 47.050, 47.070, 47.079, 11.432 & 43.001 Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019 -05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), OAC-1931278 (10/1/2019 – 09/30/2023), EAR- 2244446 (03/01/2023 – 02/28/2026), OAC-2209833 (01/01/2023 – 12/31/2026), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2024), OAC-2103780 (10/01/2021 – 09/30/2026), OAC-2118329 (10/01/2021 – 09/30/2026), OISE-1855654 (05/15/2019 – 12/31/2023), A22NWS4320003 (08/01/2022 – 07/25/2025, 08/01/2022 – 07/25/2025, 04/01/2023 – 03/31/2024, 06/01/2023 – 05/31/2024, 06/01/2023 – 05/31/2026, 06/01/2023 – 05/31/2025, 06/01/2023 – 05/31/2025) & 80NSSC22k0965 (06/01/2023 – 05/31/2026) Pass Through Entity: University of Alabama & Ohio State University MW2023-001 REPORTING - DCF Material Weakness Criteria 2 CFR Section 200.512(a) requires the reporting package and DCF to be submitted to the Federal Audit Clearinghouse the earlier of thirty calendar days after the reports are received from the auditor or nine months after the end of the audit period. Condition Due to the delay in financial close of CUAHSI’s books and records, a federal single audit for fiscal year 2023 was not performed in a timely manner and the DCF was not submitted by its due date of September 30, 2024. The UG requires the reporting package and DCF to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditor (October 30, 2025) or nine months after CUAHSI’s year end (September 30, 2024). Cause & Context CUAHSI did not have effective controls in place to allow for a timely year-end closing. This caused significant auditor delays which resulted in CUAHSI’s inability to meet the filing requirements under the UG. Effect CUAHSI is not in compliance with 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Questioned Costs None Prior Year Audit Finding Yes, previously reported as MW2022-004. Recommendation Management should implement policies to ensure timely financial reporting and ensure the timely completion of an audit. View of Responsible Official and Planned Corrective Action See accompanying Corrective Action Plan.
Information on Federal Program – Assisting Listing Number 11.307, Economic Adjustment Assistance Criteria or Specific Requirement – According to 2 CFR Part 200.512, auditees are required to submit the audit reporting package, including the Single Audit report, to the Federal Audit Clearinghouse within 30 days after receipt of the auditor’s report(s), or nine months after the end of the audit period, whichever comes first. Condition – The auditee did not submit the required audit reporting package for the fiscal year ended December 31, 2023 with the Federal Audit Clearinghouse within the required time frame which was beyond the required deadline of September 30, 2024. Questioned Costs: $0 Context: The reporting package was submitted past the required deadline. Cause - The delay was due to a lack of effective internal controls and oversight to ensure identification of federal funding and timely submission of the audit reporting package. Effect or Potential Effect - Late submission of the audit reporting package may result in non-compliance with federal requirements, potentially affecting the auditee’s eligibility for future federal funding and subjecting the auditee to increased scrutiny or penalties. Recommendation - We recommend that the Organization establish and implement a formal process to monitor and ensure identification of federal funding and timely submission of the audit reporting package to the Federal Audit Clearinghouse. This process should include setting internal deadlines and assigning responsibility to specific personnel for compliance monitoring. Views of Responsible Officials – Management has reviewed the finding related to the late filing of the audit report to the Federal Audit Clearinghouse and concurs with this finding. Management has taken immediate steps to strengthen oversight and ensure future compliance. Knowledgeable personnel are now in place and have been made fully aware of all federal reporting requirements and deadlines. Management is actively developing formalized policies and procedures governing federal reporting, including a centralized compliance calendar, documented workflows, defined roles and responsibilities, and an internal review process prior to submission. These measures will be implemented by the first quarter of 2026.
Finding 2023-002: Submission of Single Audit Federal Agency:U.S. Department of Agriculture pass through CA Department of Education ALN Number: 10.558, 10.559 Federal Program: Child and Adult Care Food Program, Summer Food Service Program Requirement: Reporting-Single Audit Report Year:2023 Type of Finding: Material Noncompliance and Material Weakness Criteria: PART 200 - Uniform Administrative Requirements, Cost Principles, And Audit Requirements For Federal Awards Subpart F - Audit Requirements. (a) Audit required. A non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of this part. Part 200 - Uniform Administrative Requirements, Cost Principles, And Audit Requirements For Federal Awards. 2 CFR § 200.512 - Report submission, states in part: (a) General (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Organization received communication from the California Department of Education indicating that the organization had federal fund expenditures of $750,000 or more during Fiscal Years FY2021-22 and FY2022-23 and is required to complete and submit annual audits. If J-Tech Institute, Inc. does not submit their annual organization-wide contract audit report or program-specific audit reports for FY2021-22 and FY2022-23 to the CDE and the FAC by October 9, 2025, the CDE will determine that J-Tech Institute, Inc. is seriously deficient in their operation of the SFSP in accordance with 7 CFR, Section 225.11(c). An extension was granted through December 1, 2025, per the Organization’s request. Condition: As of the date of this report, the Organization is late with its submission of the single audit report. Cause: The Organization did not have an adequate internal control system and procedures in place to ensure timely completion and submission of required single audit. Effect: The Organization exposes itself to the risk of granting agencies withholding funding for not completing and submitting the required Single Audit Report in a timely manner. Recommendation: We request the Organization to introduce additional controls to ensure annual single audits are completed as required in a timely manner. We recommend program management be more diligent in following its procedures and internal controls related to contracts in order to ensure compliance with applicable Federal and State requirements. Views of Responsible Officials: The Organization concurs with the finding and has introduced additional procedures in place as outlined in the Corrective Action Plan to ensure compliance with the requirements.
Finding 2023-006 – Timely Submission of the Single Audit Agency: U.S. Department of Health and Human Services – Administration for Children and Families Federal program: Child Care and Development Block Grant (CCDBG) ALN: 93.575 Compliance requirement: Reporting Category: Significant Deficiency in Internal Control over Compliance and Noncompliance Questioned costs: None Repeat finding: No Condition: As of the date of this report, Semillitas de Amor, Inc. has not submitted the Single Audit reporting package for the fiscal year ended December 31, 2023, to the Federal Audit Clearinghouse (FAC). The reporting deadline was September 30, 2024. Criteria: 2 CFR 200.512(a) requires auditees to submit the Single Audit reporting package, including the financial statements, schedule of expenditures of federal awards (SEFA), auditor’s reports, and corrective action plan, to the FAC no later than 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: Management did not have sufficient procedures in place to ensure timely completion and submission of the Single Audit. The audit process was initiated after the regulatory deadline due to delays in closing the financial records and subsequent difficulties in engaging an auditor. Effect: Failure to submit the Single Audit reporting package within the required timeframe represents noncompliance with federal requirements and may impact the entity’s eligibility for current and future federal funding. Federal agencies and pass-through entities are not able to rely on timely audit results to monitor the use of federal funds. Recommendation: We recommend that management establish and implement procedures to ensure the timely completion of the financial statement close and audit process, including engaging auditors well in advance of the required deadline, to comply with the federal reporting requirements.