Finding Text
2023-02 – Untimely Submission of Reporting Package (Material weakness in internal controls)
Criteria:
2 CFR section 200 512(a) of the Code of Federal Regulations (CFR) requires that the audit, data collection form, and reporting package must be submitted within 30 calendar days of receiving the auditor’s report(s) or nine months after the audit period ends, whichever is earlier.
Condition:
The single audit reporting package and data collection form were not able to be completed in time to submit to the Federal Audit Clearinghouse within nine months after the end of the audit period.
Cause:
During the year ended June 30, 2021, unusually high turnover and new personnel within the accounting department led to many lengthy delays in performing accurate and timely month end account reconciliations. These delays caused the FY2021 audit submission to be delayed approximately fourteen months. The cumulative effects of the delays caused the audits for the following two audit periods to also be delayed.
Effect:
Although excellent improvements have been made by the Organization’s fiscal department in performing accurate and timely month-end reconciliations, due to the delays encountered in completing the FY2021 audit, the start of each of the audits for the following two years could not be scheduled on a timely basis primarily due to scheduling conflicts and capacity constraints with the audit firm engaged to perform the audits. This caused the audits for each of the two succeeding years to also be submitted late to the Federal Audit Clearinghouse in accordance with Uniform Guidance.
Recommendation:
Management should continue to improve upon the procedures already implemented and to continue to strengthen existing controls to ensure that each year’s audit can be planned and performed in a timely manner to enable the Organization to meet all reporting deadlines and requirements.
Management's Response:
The Organization agrees with this finding and will adhere to the corrective action as detailed in the attached Corrective Action Plan