Finding Text
Finding --- The Organization did not submit its Single Audit reporting package, including the data collection form (Form SF-SAC), to the Federal Audit Clearinghouse within the required timeframe following the end of the fiscal year. The report was not filed and therefore not made available to users timely. Criteria --- According to Uniform Guidance, entities that expend $750,000 or more in federal awards during the fiscal year must submit a complete reporting package and data collection form to the Federal Audit Clearinghouse (“FAC”). FAC requires a reporting package to be submitted within the earlier of 30 days after receipt of the audit report(s), or nine months after the end of the audit period. Condition --- The delay appears to be due to lack of internal controls to ensure timely tracking, preparation and submission of the Single Audit reporting package and data collection form. Consequently, the Organization did not submit the reporting package to the Federal Audit Clearinghouse. Context --- In its financial state, a limited number of resources were available to perform a timely and accurate close and audit submission. Effect --- Failure to submit the required information to the FAC within the specified deadline constitutes noncompliance with the Uniform Guidance requirements and increases the risk of delayed federal oversight, potential funding implications, and reputational risk to the organization. The Organization cannot be considered low risk in the future year. Cause --- A late Federal Audit Clearinghouse Submission precludes the Organization from being considered low risk per the Uniform Guidance. Recommendation --- The Organization should develop procedures to ensure that future annual financial statement closing procedures are performed timely and that Single Audit reporting and data collection form packages are submitted to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditors’ reports or 9 months after the end of the audit period. This should include assigning responsibility, setting calendar reminders, and establishing review procedures to prevent future noncompliance. Management response --- The Organization will seek to achieve a timelier closing process and audit submission.