Finding Text
2024-007 Late Single Audit Submissions Compliance Requirement Reporting Category Material weakness in Internal Control and Material Noncompliance ALN 12.607 Program Community Economic Adjustment of Establishment, Expansion, Realignment, or Closure of a Military Installation Federal Agency US Department of Defense ALN 10.770 Program Water and Waste Disposal Loans and Grants (Section 306C) (NOT A MAJOR PROGRAM) Agency US Department of Agriculture (Rural Development) ALN 97.036 Program Disaster Grants - Public Assistance (Presidentially Declared Disasters) (NOT A MAJOR PROGRAM) Federal Agency US Department of Homeland Security ALN 21.027 (COVID-19) Program Coronavirus State and Local Fiscal Recovery Funds Federal Agency US Department of Treasury Criteria Per 2 CFR § 200.512(a), non-federal entities that expend $750,000 or more in federal awards during a fiscal year must submit the single audit report to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Authority did not submit its Single Audit reports for the fiscal years ended June 30, 2021, 2022, 2023, and 2024 to the Federal Audit Clearinghouse (FAC) within the required timeframe. Specifically, the Single Audit reports for fiscal years 2021, 2022, and 2023 were submitted in July 2025, well beyond the nine-month deadline established under federal regulations. The report for fiscal year 2024 had also not been submitted as of the date of this audit. Cause The delay in submission was due to a lack of effective management control activities to ensure the timely completion and submission of the Single Audit reports in accordance with federal requirements. This includes insufficient oversight, inadequate planning, and lack of accountability mechanisms within the Authority’s financial reporting process. Effect If the Federal awarding agency or passthrough entity determines that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding agency or passthrough entity may take one or more of the following actions, as appropriate in the circumstances: (a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or more severe enforcement action by the Federal awarding agency or passthrough entity. (b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance. (c) Wholly or partly suspend or terminate the Federal award. (d) Initiate suspension or debarment proceedings as authorized under 2 CFR part 180 and Federal awarding agency regulations (or in the case of a passthrough entity, recommend such a proceeding be initiated by a Federal awarding agency). (e) Withhold further Federal awards for the project or program. (f) Take other remedies that may be legally available. Questioned Costs None Repeat Finding Disclosure This is a repeat finding. The same condition was reported in the prior year’s audit. Although corrective action was anticipated, the Authority did not implement effective measures to ensure timely submission of the Single Audit reports. As a result, the issue remains unresolved. Refer to item 2023-001. Recommendation The Authority should implement robust internal controls and oversight procedures to ensure timely completion and submission of Single Audit reports. This includes assigning clear responsibilities, establishing internal deadlines aligned with federal requirements, and monitoring progress throughout the audit cycle. Views of Responsible Official (Unaudited) Refer to Corrective Action Plan