Finding 1176656 (2024-002)

Finding Number: 2024-002 Finding Type: Noncompliance Information on the Federal Program: N/A – Not program-specific Criteria: 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (FAC) the earlier of 30 calendar days after the reports are received from the auditor or nine months after the end of the audit period. Condition: FAC filing for fiscal year ended March 31, 2024 was submitted late. Cause: The Organization did not have effective internal controls to ensure timely and accurate preparation of financial information, including account reconciliations (see Finding 2024.001). As a result, management did not have the information necessary to complete the FAC filing within the timeframe required by 2 CFR §200.520(a). Effect: The late submission of the Single Audit report to the Federal Audit Clearinghouse creates noncompliance with federal reporting requirements and increases the Organization’s risk of administrative actions by federal awarding agencies, including Health Resources and Services Administration (HRSA). This may result in delayed acceptance of federal awards, imposition of grant conditions, or restrictions on access to federal funds until the report is submitted and accepted. Questioned Costs: None Repeat Finding: Yes, 2023-002 Recommendation: The Organization should implement procedures to ensure that account reconciliations and financial reporting are completed in a timely manner, enabling the Single Audit reporting package to be submitted to the Federal Audit Clearinghouse within the required timeframe. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. The Organization is implementing procedures to complete and review account reconciliations and financial reporting on a monthly basis, with appropriate oversight and staffing. These steps are intended to ensure that future Single Audit reporting packages are submitted to the Federal Audit Clearinghouse within the required timeframe.