Finding Text
CRITERIA: 2 CFR requires that non-Federal entities that expend $750,000 or more in a year in Federal awards must submit their audited annual financial reports and the data collection form to the Federal Audit Clearinghouse within thirty (30) days after receipt of the auditor’s report, or nine (9) months of the close of the auditee’s fiscal year. CONDITION: The Organization did not remit the annual audited financial statements and the data collection form to the Federal Audit Clearinghouse within 9 months after year-end as required by the Uniform Guidance. CAUSE: The Organization experienced turnover in a key management position, which caused a delay in the performance, completion, and submission of the annual audit report. The 2023 audit report was not issued until August 2025. EFFECT: Late submission can result in withholding of federal funding. RECOMMENDATION: The Organization should implement policies and procedures to ensure the timely filing of any and all required reports. MANAGEMENT’S RESPONSE: See management’s corrective action plan starting on page 30.