Finding Text
2023-003 — Late Audit Report
Federal program information:
Funding agency: All
Title: All
ALN: All
Award period: Various
Criteria: According to 2 CFR Part 200.512, the annual single 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 (June 30, 2024).
Condition: CBNHC’s fiscal year 2023 single audit reporting package was not submitted by the due date of June 30, 2024.
Context: N/A
Questioned Costs: None
Cause: CBNHC was significantly impacted by the COVID-19 pandemic, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards.
Effect: CBNHC was unable to completely reconcile certain general ledger accounts timely, which resulted in significant audit adjustments. As a result, the audit started late and was not issued within the reporting deadline.
Auditor’s Recommendations: The Accounting department should be analyzed, and functions/duties re-assigned and/or additional personnel hired to ensure that monthly and annual account reconciliations are performed timely to ensure that the data collection form and reporting package are submitted by the due date.
Management’s Response: In fiscal year 2023, CBNHC experienced significant disruption in its administrative operations caused by political struggles over its rightful governing body. In the first quarter of fiscal year 2023, CBNHC made progress towards catching up with its financial audits for fiscal years 2021 and 2022. However, key personnel were administratively unavailable during the last quarter of 2023, causing CBNHC to fall further behind in its financials.