Finding 1206060 (2024-003)

2024-003: Late Submission Program Information: Funding Agency: All federal and state funding agencies listed on the schedules Title: All federal and state programs listed on the schedules AL Number: All federal and state programs listed on the schedules Award year and number: All federal and state programs listed on the schedules Criteria - 2 CFR section 200.512(a) and by reference to 2 CFR section 200.512(a) require the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Condition - The fiscal year audit and reporting package is being submitted after the required due date. Context - We reviewed the audit submission date in comparison to the required due date. Questioned Costs - None Effect- There is potential for suspension or cessation of federal and state funding Cause - There was a delay in receiving the necessary approval to finalize the audit and submit the reporting package to the Federal Audit Clearinghouse. Recommendation - We recommend that the District develop policies and procedures to ensure that District records are ready for audit and supported by adequate documentation which will allow the audit firm to complete the audit in a timely and efficient manner. Management's Response - The City is developing policies and procedures to ensure that financial records are maintained on a more current basis, reconciled timely and audited within nine months after year-end.