Finding Text
Item 2022-005 - Single Audit Filing Requirements Federal Agency: US Department of Health and Human Services Assistance Listing Number: 93.558 Pass-Through Agency: MA Department of Early Education and Care Pass-Through Number(s): 30004060 Award Period: 9/1/2009 – 6/30/2023 Type of Finding: Material Weakness in Internal Control over major federal program Condition: Organizations that expend $750,000 or more in federal awards during their fiscal year are required to have a single audit. Effect: Failure to conduct the required single audit could result in non-compliance with federal regulations, which may lead to penalties, loss of future funding, or other negative consequences for the organization. Cause: The Organization’s internal processes failed to adequately track and assess the threshold for federal expenditures, resulting in the failure to identify that a single audit was necessary. Criteria: According to the Office of Management and Budget (OMB) Circular A-133 (now superseded by 2 CFR Part 200), entities that expend $750,000 or more in federal awards during their fiscal year are required to have a single audit conducted to ensure compliance with federal regulations and the proper stewardship of federal funds. Recommendation: We recommend the Organization review all federal awards and expenditures to ensure that all deadlines are met, including the completion of a single audit as required by OMB regulations. The Organization should implement procedures to track federal funds and ensure that audit requirements are met in a timely manner for future fiscal years. View of Responsible Officials: Management agrees with the finding and is in the process of revising internal controls to monitor federal expenditures throughout the year, ensuring that thresholds triggering audit requirements are promptly identified.