Finding Text
Criteria - Management is responsible for establishing and maintaining effective internal controls and accounting policies to complete accounting records timely to allow correction of audited financial statements to facilitate timely filing of the data collection form.
Condition - The Data Collection Form for the year ended December 31, 2022 was not filed with the Federal Audit Clearinghouse within nine months after year end.
Cause - The late filing resulted form a change in the accounting department leading to late completion of the audited financial statements and timely submission of the data collection form with the federal audit clearing house.
Effect - The Data Collection Form for the year ended December 31, 2022 was not filed with the Federal Audit Clearinghouse within nine months after year end.
Questioned Costs - None identified.
Recommendation - Empire Justice Center should establish accounting procedures to complete the timely submission of the Data Collection Form.
Management’s Response - As a result of a change in accounting personnel, implementation of new accounting software and modifications to internal practices resulting in improved accuracy of the accounting records in fiscal 2022, there was a delay in our audit readiness. When we were finally prepared, which was outside of our originally scheduled window, the external audit firm did not have available staff, resulting in additional delays in completing the audit and submitting the Data Collection Form. However, this issue was isolated to 2022 and subsequently resolved as we submitted the form timely in the current year.