Finding Text
Criteria The audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor’s report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize and extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the rporting package is due the next business day. OMB Uniform Guidance subpart B .200(a) establishes that Non-Federal entities that expend $500,000 ($750,000 for fiscal years ending after December 25,2015) or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part OMB Uniform Guidance subpart B .220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (h) (1) and (2XB) establish that the non-Federal Organization shall transmit the reporting package, which shall include the non-Federal Organization's financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor's report; or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. Condition The Single Audit Report for the fiscal year ended June 30, 2021 of the SIFC’s with due date of March 31, 2022 was submitted after the 47 months deadline. The Single Audit related to such period was completed after the 47-month deadline. Cause The SIFC did not have internal controls and processes to enable compliance with completing and submitting the Single Audit Report of the SIFC in the due date established by the Single Audit Act. Effect Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned costs None Perspective Information Finding represents a significant problem. The Corporation will accelerate the process to contract auditors to carry out the audit and submit the report on time. Recommendations The SIFC shall establish controls and procedures to enable compliance with completion and submission of the Single Audit Report of SIFC to the Federal Clearinghouse before the 9 months deadline. Views of Responsible Officials As part of the preventive measures to file the Single Audit in a timely manner, an employee was selected to specifically dedicate time and effort related to auditing processes. Coordination of weekly meetings and phone calls with the external audit firm and the Programs has rendered immediate results to follow through with an established work plan. Therefore, time has been properly managed to collect the necessary information. Responsible Officials Director of Finance & Administration Estimated Completion Date Implementation is expected to be completed on or before March 30, 2026