Finding Text
Condition: The audit reporting package submission to Veterans Association will be delayed by three months.
Criteria: According to 2 CFR 200.507(c)(1), the audit must be completed, and the reporting required by paragraphs (c)(2) or (c)(3) must be submitted within either 30 calendar days of receiving the auditor's report or nine months after the end of the audit period, unless a different timeframe is specified in a program-specific audit guide.
Cause: Transition in accounting personnel (book-keeping service provider) during the year and change in auditors for financial year ended September 30, 2023.
Effect: It delayed completion of the financial statement closing process and thus the audit.
Recommendation: a) Develop a structured timeline for future audits, and
b) Implement a robust training program/ Knowledge Transfer plan for accounting service providers. Management’s Response: We acknowledge the finding regarding the delay in submitting the audit report as required by 2 CFR 200.507(c)(1). The delay was primarily due to a transition in our accounting personnel and a change in auditors, which resulted in unforeseen challenges.
To address this issue, we have taken the following steps:
a)Accountant Training: We are implementing a training program for our accounting personnel to ensure they are well-versed in compliance requirements and audit processes.
b)Audit Timeline Improvement: We are developing a more structured timeline for future audits, including earlier engagement with auditors to facilitate a smoother process.
c)Regular Monitoring: We will establish a system for regular monitoring of compliance deadlines to prevent future delays.