Finding Text
Finding 2025-101 — Report Submission – Significant Deficiency in Internal Controls over Compliance (Reporting) (Repeat Finding-Similar to Prior Year Finding 2024-101) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.251, 21.027 Award numbers: GR-ARPA-CASS-010123-01, GR-ARPA-CASS-010123-02, ASUB00001346, 4701009391, 419-22, 150975, ISA-ARPA-ASU-010123-02, B-23-CP-AZ- 0061 Pass-Through grantors: City of Phoenix, Arizona State University, Arizona Housing Coalition, HUD Direct Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2025, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.