Finding Text
Finding 2024-2 – Late Filing of Required Reporting of Federal Awards Type of Finding: Material Weakness; Noncompliance U.S. Department of Health and Human Services, passed through New Jersey Department of Human Services Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing No. 93.959. Condition: The Organization’s Data Collection Form and reporting package were not submitted to the Federal Clearinghouse within the required timeframe of the earlier of 30 days after receipt of the audit report or nine months after fiscal year end. Criteria: In accordance with 2 CFR §200.512, a non-Federal entity that expends $750,000 or more in Federal awards during its fiscal year is required to have a single audit conducted. The Data Collection Form and reporting package, including the audited financial statements and single audit reports, must be submitted to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditors' report or nine months after fiscal year end. Cause: The Organization did not have sufficient procedures in place to ensure that all information necessary to complete the audit was prepared and provided in a timely manner, resulting in delayed submission to the Federal Audit Clearinghouse. Effect: The Organization is not in compliance with the reporting requirements of 2 CFR §200.512, which could affect future funding. Recommendation: We recommend the Organization strengthen its year-end closing and audit preparation procedures and establish controls to ensure timely submission of the federal single audit reporting package. Views of Responsible Officials and Planned Corrective Actions: Due in part to delays from the Organization’s prior auditor addressed in the Corrective Action Plan for the June 30, 2023 audit, the 2024 and 2025 audits were significantly delayed. Management has already taken steps to strengthen controls for year-end closing and audit preparation procedures to ensure timely submission of the federal single audit reporting package. These steps included replacing the Chief Financial Officer and engaging an accounting firm to assist with the closing process. Furthermore, the Organization is working quickly to complete the 2025 audit to bring federal reporting fully up to date. Lastly, the Organization is updating its accounting procedures manual to reflect these improved practices.