Finding Text
Finding 2025-002: Material Weakness, Late Issuance of the 2024 Single Audit Reporting Criteria/Context: Uniform Guidance 2 CFR 200.512(a) requires that each organization’s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Applicable to all assistance listing numbers (ALN’s) and federal agencies (and passthrough entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2025. Condition/Finding: The Single Audit package for the Town’s fiscal year ended June 30, 2025, should have been submitted to the Federal Audit Clearinghouse by January 2026. The Town missed the filing deadline, making the filing for 2025 late. Cause: The cause is the lack of effective controls over financial reporting resulted in delays in both the Financial Statement Audit and Single Audit. Effect or Potential Effect: This can result in an inaccurate amount reported in the SEFA, SESA, or basic financial statements or the disallowance of expenditures / future awards by the grantor due to lack of proper reporting. In addition, late filings result in noncompliance with the requirements of the Uniform Guidance and makes the Town ineligible for consideration as a low-risk auditee under Uniform Guidance, expanding the scope and cost of the single audit. Recommendation: We recommend the Town evaluate the process and design of internal controls over financial reporting, including the SEFA and SESA, in order to ensure readiness for the audit and to avoid late filing of the data collection form. Management’s Response:: The Town will implement internal controls to ensure the filing deadline is met. Jason Vieira of the Towns Finance Department is responsible for the corrective action plan.