Finding Text
Criteria
In accordance with CFR section 200.512 of the Uniform Guidance, the audit must be completed and the data collection form and reporting package must be submitted 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. In accordance with OMB Memo M-20-26, and due to the coronavirus pandemic, an extension of six months beyond the normal due date was granted for submission of the audit, data collection form, and reporting package.
Condition
The 2021 Single Audit reporting package and data collection form have not been submitted to the Federal Audit Clearinghouse by the original deadline of March 31, 2022, nor the extended deadline of September 30, 2022.
Cause
There were various accounting issues such as personnel turnover and accounting schedules not properly reconciling to the general ledger which caused delays in the completion of the 2020 annual audit.
Effect
The filing of the Single Audit Reporting package and data collection form is past the due date.
Recommendation
As noted in recommendation 2021-001, we recommend the City strive to close the year-end with properly prepared reconciliations within 3 - 4 months after year-end in order to complete the annual financial audit timely.
View of Responsible Officials
Management agrees with the finding. The City's Finance Department is implementing regular reconciliations of accounts and in 2022 started a year end closing process. Checklists have been developed and continue to be refined. Once the City becomes current this compliance issue will be mitigated.