Finding Text
Finding 2025-004 Noncompliance with Federal and State Financial Reporting Requirements (continued) Condition HSI successfully obtained extensions for filing its audit report package with various funding sources. However, extensions are not permitted for Single Audit reporting requirements. As a result, HSI did not submit the required documents to the Federal Audit Clearinghouse within nine (9) months of June 30, 2025. In addition, HSI did not submit the required documents to the GATA portal within nine (9) months of June 30, 2025. Cause This condition was due to HSI experiencing delays in the transfer of information from its prior auditor to the current auditor. Additionally, certain grant-related financial information from funding sources was obtained much later than normal which prevented the audit process from beginning at an earlier date. Effect The effect is that noncompliance with financial reporting deadlines could cause funding sources for HSI to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes, see Finding 2024-004 in the summary schedule of prior audit findings. Recommendation We recommend that management review and evaluate its current processes to determine how to improve them so that they will be able to meet all financial reporting deadlines in the future. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.