Finding Text
Condition Found The reporting package and data collection form for the 2022 audit was not filed by the September 30, 2023 deadline. This is a repeat of Finding 2022-001 from the 2022 audit. Effect NCST is in violation of 2 CFR Section 200.512(a). Cause The delays in preparing for the single audit appear to be the result of a combination of internal restructuring and procedural inefficiencies, which resulted in a very late audit start date. Criteria Uniform Guidance and 2022 Compliance Supplement, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse by the earlier of 30 calendar days after the reports are received from the auditor, or nine months after the end of the audit period. Recommendation NCST should ensure that its records are completed and reconciled in a timely manner, so that the single audit can be performed and completed on time, and the reporting package and data collection form can be submitted before the deadline. View of Responsible Officials NCST has been actively working to strengthen its financial infrastructure by addressing outstanding reconciliations, enhancing accounting processes, and implementing a more efficient financial management system. These efforts initially presented challenges in meeting reporting deadlines. To ensure timeliness and accuracy moving forward, NCST has expanded its finance team by hiring a senior accountant and appointing a highly qualified Finance Director to lead the department. Additionally, the organization has engaged a third-party CPA firm to provide expert oversight, reinforce compliance with federal and grant reporting requirements, and support ongoing financial management. These measures collectively position NCST for greater fiscal stability, improved reporting efficiency, and long-term accountability.