Finding 1073839 (2023-001)

Finding No. 2023-001: Compliance Finding – Reporting and Significant Deficiency of Internal Controls Over Compliance – ASLN 59.077, U.S. Small Business Administration Criteria In accordance with the Uniform Guidance, the audit package and the Data Collection Form must be submitted within 30 days after the receipt of the auditors’ report or nine months after the end of the fiscal year, whichever comes first. Condition The auditor’s report was issued on January 5, 2024, causing the Data Collection Form submission to occur beyond the nine-month reporting deadline. Context The Data Collection Form for the year ended December 31, 2022 was not submitted to the Federal Audit Clearinghouse by the September 30, 2023 deadline. Cause The prior auditors communicated to management that their audit reporting would be delayed due to internal staffing changes. Effect Management did not fully adhere to the reporting requirements of the Uniform Guidance. Repeat Finding No Recommendation Prior to engaging an auditor, we recommend that management, to the best of its ability, evaluate the capabilities and resources of the auditor to evaluate whether the auditor will be able to issue their report before the deadline. Further, management should coordinate with their auditor on a timetable to complete the audit that allows for sufficient time to address uncertainties that may not be known upon commencing the audit. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.