Finding Text
Finding Number:2024-005 Instance of Non-Compliance:Reporting Assistance Listing # 66.466 Questioned Cost $0 Repeat Finding: No Significant Deficiency Federal Agency: Environmental Protection Agency Criteria: 2 CFR section 200.512 requires that a non-federal entity’s single audit and data collection form must be submitted within the earlier of thirty days after the receipt of the auditor’s report or nine months after the end of the audit period. Condition: The Organization’s audited financial statements for the December 31, 2024 year-end were not submitted to the Federal Audit Clearing House within the stipulated nine months after year-end. Context: This is a condition identified based on review of Uniform Guidance requirements. Cause: The condition appears to be due to delays in completing the year-end financial close process and the absence of adequate procedures to ensure that all necessary journal entries and reconciliations are completed prior to the commencement of the audit. Effect: The program is not in compliance with reporting compliance of the Office of Management and Budget for non-profit, state and local government entities. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Organization works to have reconciliations completed on a timely basis and have its audits completed timely in the upcoming year to comply with federal guidelines. Views of Responsible Officials and Planned Corrective Action Plan: Management acknowledges the finding and agrees that timely submission of the audit report to the Federal Audit Clearinghouse is critical for compliance. The delay was partly due to this being the organization’s first Single Audit and delays in completing the year-end close process. To address this, the organization will implement a structured year-end closing timeline, including a detailed checklist, assigned responsibilities, and internal deadlines to ensure all reconciliations and journal entries are completed prior to the audit. Management will also establish procedures to monitor key reporting deadlines and coordinate closely with auditors to ensure timely completion and submission in accordance with federal requirements. Responsible Official: Abel Olivo, Executive Director, in coordination with the organization’s outsourced accounting firm Anticipated Completion Date: December 31, 2025