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Finding 2023-006 – Timely Submission of the Single Audit Agency: U.S. Department of Health and Human Services – Administration for Children and Families Federal program: Child Care and Development Block Grant (CCDBG) ALN: 93.575 Compliance requirement: Reporting Category: Significant Deficiency in Internal Control over Compliance and Noncompliance Questioned costs: None Repeat finding: No Condition: As of the date of this report, Semillitas de Amor, Inc. has not submitted the Single Audit reporting package for the fiscal year ended December 31, 2023, to the Federal Audit Clearinghouse (FAC). The reporting deadline was September 30, 2024. Criteria: 2 CFR 200.512(a) requires auditees to submit the Single Audit reporting package, including the financial statements, schedule of expenditures of federal awards (SEFA), auditor’s reports, and corrective action plan, to the FAC no later than the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the end of the audit period. Cause: Management did not have sufficient procedures in place to ensure timely completion and submission of the Single Audit. The audit process was initiated after the regulatory deadline due to delays in closing the financial records and subsequent difficulties in engaging an auditor. Effect: Failure to submit the Single Audit reporting package within the required timeframe represents noncompliance with federal requirements and may impact the entity’s eligibility for current and future federal funding. Federal agencies and pass-through entities are not able to rely on timely audit results to monitor the use of federal funds. Recommendation: We recommend that management establish and implement procedures to ensure the timely completion of the financial statement close and audit process, including engaging auditors well in advance of the required deadline, to comply with the federal reporting requirements.