Finding Text
Criteria: The Organization has grant agreements from the government with terms requiring compliance with
financial reporting requirements in accordance with Uniform Guidance. As such, for the year ended December
31, 2023, the Organization is required to submit audited financial statements to the Federal Audit Clearinghouse
(the “FAC”). The due date for submission of the audit package to FAC is nine (9) months after the
Organization’s year-end.
Condition: The Organization did not submit its audit within nine (9) months after the Organization’s fiscal year-end.
Effect: The effect is that noncompliance with financial reporting deadlines could cause funding sources for the Organization to suspend funding until compliance is achieved.
Cause: This condition was due to the Organization not identifying that an audit was required until receiving notification that it had been provided enough funding to require the Organization to submit an audit as part of maintaining compliance with its grant agreements with the government.
Recommendation: We recommend that the Organization implement procedures to ensure that all federal funds received are identified as such to ensure that the Organization maintains compliance with applicable federal requirements including required audit submission due dates. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will implement a corrective action plan based on this recommendation.