Finding 1205008 (2024-003)

DELINQUENT FILING OF SINGLE AUDIT REPORTS – significant deficiency. Uniform Guidance requires audit reports be filed within the earlier of 30 days after receipt of audit report or nine months after the end of the audit period. Innovative Health Solutions is not in compliance with such filing requirement in the current year. Funders may delay future grant reimbursement or discontinue contracts. The fiscal 2023 audit report is the Agency’s first audit under both U.S. generally accepted auditing standards and under the Uniform Guidance. After it was understood that the Federal expenditure threshold for a Single Audit had been exceeded, the Agency began preparing for its initial audit, which included converting its financial statements from a cash basis to an accrual basis and contracting with a new outside public accounting firm to perform the audit. We recommend that the Agency audit begin earlier in the year to ensure compliance with the deadline.