Finding Text
Information on Federal Program – Assisting Listing Number 11.307, Economic Adjustment Assistance Criteria or Specific Requirement – According to 2 CFR Part 200.512, auditees are required to submit the audit reporting package, including the Single Audit report, to the Federal Audit Clearinghouse within 30 days after receipt of the auditor’s report(s), or nine months after the end of the audit period, whichever comes first. Condition – The auditee did not submit the required audit reporting package for the fiscal year ended December 31, 2023 with the Federal Audit Clearinghouse within the required time frame which was beyond the required deadline of September 30, 2024. Questioned Costs: $0 Context: The reporting package was submitted past the required deadline. Cause - The delay was due to a lack of effective internal controls and oversight to ensure identification of federal funding and timely submission of the audit reporting package. Effect or Potential Effect - Late submission of the audit reporting package may result in non-compliance with federal requirements, potentially affecting the auditee’s eligibility for future federal funding and subjecting the auditee to increased scrutiny or penalties. Recommendation - We recommend that the Organization establish and implement a formal process to monitor and ensure identification of federal funding and timely submission of the audit reporting package to the Federal Audit Clearinghouse. This process should include setting internal deadlines and assigning responsibility to specific personnel for compliance monitoring. Views of Responsible Officials – Management has reviewed the finding related to the late filing of the audit report to the Federal Audit Clearinghouse and concurs with this finding. Management has taken immediate steps to strengthen oversight and ensure future compliance. Knowledgeable personnel are now in place and have been made fully aware of all federal reporting requirements and deadlines. Management is actively developing formalized policies and procedures governing federal reporting, including a centralized compliance calendar, documented workflows, defined roles and responsibilities, and an internal review process prior to submission. These measures will be implemented by the first quarter of 2026.