Finding Text
Finding 2023-002 – Significant Deficiency - Untimely Audit Submission in Accordance with OMB Uniform Guidance Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation Compliance Requirement: Reporting Condition: The Authority did not electronically submit their February 28, 2023 Single Audit reporting package (Single Audit Report, Data Collection Form, and a Corrective Action Plan) within the required time period. Criteria: The Authority was required to submit its February 28, 2023 audited financial statements and single audit reporting package to the federal audit clearinghouse no later than November 30, 2023, 9 months after the fiscal year-end (2 Code of Federal Regulations 200.512(a)). Cause: The Authority was not able to complete its single audit by the reporting deadline due to staff shortages. Effect: Federal awarding agencies may deny the Authority future federal awards or subject the Authority to additional monitoring requirements. Recommendation: We recommend that management strengthen the related internal controls over monitoring of its year-end reconciliation of its financial statements to ensure that the general ledger accounts reflect proper and complete activity consistent with their basis of accounting. We believe that reviews, evaluations of transactions, and reconciliations of accounts should be performed on a regular basis during the year. This would expedite the year-end closing process and ensure compliance with the audit report submission requirements of OMB Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The Authority agrees with the finding and is in the process of implementing processes to ensure timely close-out of the books.