Finding Text
Condition – Under Uniform Guidance, Porchlight, Inc.'s audited financial statements for the year ended December 31, 2023 were due to the federal single audit clearinghouse by September 30, 2024. Porchlight Inc.'s December 31, 2023 audited financial statements were not completed for submission to the federal audit clearinghouse until after September 30, 2024.
Criteria – Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “effective control over, and accountability for, all funds, property, and other assets.” In addition, Uniform Guidance requires audited financial statements to be submitted to the federal audit clearinghouse within nine-months after an entity’s year-end.
Cause – During the audit year, there was turnover in Porchlight, Inc.’s business office which contributed to the lack of timely reconciliation's. Porchlight, Inc. is working on streamlining and implementing processes to address the deficiencies noted in the condition paragraph.
Effect – A significant deficiency in internal control over compliance and an instance of noncompliance exists due to failure to provide financial statements in a timely manner in order to meet audit submission deadlines.
Recommendation – We recommend Porchlight, Inc.'s implement procedures to ensure timely completion of the filing of the reporting package to the federal audit clearinghouse.
View of Responsible Officials – Management agrees with the assessment and has committed to a corrective action plan.