Finding Text
Finding 2023-001 – Reporting – Significant Deficiency in Internal Controls over Compliance (See Schedule of Findings and Questions Costs for table). Criteria – 45 CFR 75.501 requires a non-Federal entity that expends $750,000 or more during the non-Federal entity’s fiscal year in Federal awards must have a single or program-specific audit conducted for that year. Audits must be completed and submitted within 30 days after receipt of the auditor’s report, or nine months after the end of the audit period, whichever is earlier.
Condition/context – The Organization did not submit a single audit in a timely manner to be following the audit requirement under 45 CFR 75.501.
Cause – The Organization was unable to meet the deadline. The August 31, 2022 audit was not completed timely, which delayed the start of the August 31, 2023 audit. In addition, certain information was not provided within the agreed upon timelines, which impacted the auditor’s ability to complete testing as originally scheduled. Effect – Audit was not performed and submitted in a timely manner. The Organization has not met the reporting requirements under 45 CFR 75.501.
Repeat finding – This is a repeat finding.
Recommendation – We recommend the Organization improve internal controls and set a timeline for closing the books, preparing audit schedules and conducting the audit so the audit can be completed timely. Management should ensure that all involved in the audit process have adequate capacity, are aware of the deadlines and commit to meet them.
Views of responsible officials - The Organization is committed to getting the single audit completed on time. A plan for August 31, 2024 audit has been developed and will begin in November 2024 and is expected to be completed before the deadline in 45 CFR 75.501.