Finding Text
Reference Number – 2024-001 – Significant Deficiency in Internal Control over Compliance and Compliance with Reporting – Remittance of Audit Reporting Package Criteria The Code of Federal Regulations (CFR) 45 CFR 75.303, Internal Controls, states, in part, “The non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)…” In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition The reporting package and data collection form for the year ended June 30, 2024, were not filed by the deadline of March 31, 2025, to the Federal Audit Clearinghouse. Cause Although the schedule and notes thereto were prepared accurately and timely, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect or Potential Effect The reporting package and data collection form for the year ended June 30, 2024, were not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs None Context The reporting package and data collection form for the year ended June 30, 2024, were submitted to the Federal Audit Clearinghouse after the due date of March 31, 2025. Repeat Finding No Recommendation We recommend the System Fund adopt policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline.