Finding Text
Criteria: In accordance with the Uniform Guidance, the Single Audit report must be submitted to the designated Federal Audit Clearinghouse (FAC) within 30 days of receipt or 9 months after the end of the audit period, whichever is earlier.
Condition: The Single Audit report was not completed within 9 months after the end of the audit period.
Cause: Personnel turnover within the Organization in addition to a delay in the prior year’s audit being completed.
Effect: Failing to file a Single Audit report on time can result in several consequences, including federal funding restrictions, penalties, and potential legal actions. These consequences can impact an Organization's ability to receive and utilize federal funds.
Repeat Finding: Yes – The Single Audit report for the year ended September 30, 2021 was not completed within 9 months after the end of the audit period.
Recommendation: The Organization should close out the year end on a timely basis so that there is adequate time to complete the Single Audit and corresponding report within the required timeframe.
Response: To address this finding, the Finance Department will be implementing the following procedures:
• Continuing to recruit for key positions such as the Controller position and another Accountant position.
• A month-end and year-end closing process will be implemented. This process will be consistently applied to ensure compliance by the finance staff.
• Account reconciliations will be performed monthly as part of the month end closing process.
• Analytics will be performed to determine consistency, completeness and accuracy of data in comparison to prior period. Significant variances will be investigated to determine completeness and accuracy of financial information.
• The year-end close will be completed within sixty days but no more than 90 days after the end of the fiscal year. The annual audit will be scheduled during this timeline and shall commence after year-end closing is completed.