Finding Text
Finding 2024-003: Material Weakness - Reporting - Late or No Submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse Agency: Department of Justice ALN: 16.027, 16.053, 16.526, 16.560, 16.582 Condition and Context: The Association submitted their Single Audit Reporting Package late for the year ended December 31, 2023, to the Federal Audit Clearinghouse. In addition, the Single Audit submission for the year ended December 31, 2022, was not filed. Criteria: The Association is required to adhere to reporting deadlines. The single audit submission to the Federal Audit Clearinghouse is due the earlier of nine months after fiscal year end or 30 days after the audit report is finalized. Cause: Due to employee fraud and lack of communication, coordination, and follow-up between the Association and their previous auditors, the single audit submission to the Federal Audit Clearinghouse was not filed on time for 2023 and not filed at all for 2022. Effect: This resulted in the single audit submission to the Federal Audit Clearinghouse being filed late or not at all. Questioned Costs: None noted. Recommendation: Appropriate written policies and procedures should be established to ensure timely filing of reports and the assignment of responsible personnel. Management Response: Management has implemented the following measures to address the issues and prevent future occurrences: The Association has implemented the steps outlined in the 2023 audit relative to this finding. In 2025, the Association hired a full-time Senior Finance Director, whose responsibilities regarding the timely filing of the annual audit are clearly outlined in the job description. Further, the third-party accounting firm has been eliminated, thereby eliminating some of the communication and coordination challenges previously experienced. Finally, steps have been taken to improve communication with our current auditors to ensure timely filing.