Finding Text
Federal Agency: Various
Assistance Listing Number: Multiple
Compliance Requirement: Reporting
Finding 2024-001: Submission of the Audit Reporting Package and Data Collection Form (Repeat of Finding 2023-001)
Criteria: Per 2 CFR §200.510(b), the auditee must prepare a Schedule of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. Per §200.512(a), the SEFA must be submitted to the Federal Audit Clearinghouse (FAC) within the required deadline.
Condition: The audit reporting package and data collection form for the year ended September 30, 2024, was not submitted to the FAC within the timeframe as required by the Uniform Guidance.
Cause: The delay was due to a lack of capacity in the finance department and not following the year-end closing schedule.
Effect: To qualify as a low-risk auditee, 2 CFR section 200.520 requires the audit reporting package and data collection form to be submitted to the FAC by the due date for each of the previous two years. Late filing will result in noncompliance with timely submission of financial information to the grantor agencies.
Recommendation: Management should address the lack of capacity in the finance department and monitor the year-end closing schedule for a timely audit reporting package and data collection form to ensure compliance with federal deadlines.
Questioned costs: None
Responsible Official's Response: We agree with the auditors’ comments, and the following action will be taken to improve the situation. At the beginning of fiscal year 2025 we have added capacity to the finance department by one full-time employee. Semcac has also contracted with an outsourcing accounting firm to enhance and improve our internal controls, processes, and procedures to ensure we both follow our year-end closing schedule and provide a timely audit reporting package.