Finding Text
Finding 2025-004 – Single Audit Report Submission – Significant Deficiency in Internal Control Over Compliance and Noncompliance (Repeat Finding – Prior Year 2023-002) Criteria or Specific Requirement: The Uniform Guidance, 2 CFR 200.512(a), requires the auditee to submit the single audit reporting package and the data collection form to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the fiscal year under audit. For the fiscal year ended June 30, 2024, the submission deadline was March 31, 2025. Condition: The single audit reporting package and data collection form for the fiscal year ended June 30, 2024 were not submitted to the Federal Audit Clearinghouse by the required deadline of March 31, 2025, resulting in a late filing and noncompliance with 2 CFR 200.512(a). This finding was previously identified as Finding 2023-002 for the fiscal year ended June 30, 2023, and was reported as resolved in the prior year audit. The recurrence of this condition indicates that the corrective actions implemented were not sufficient to prevent the issue from recurring. Cause and Effect: The late submission was primarily attributable to staff turnover in key finance positions, which resulted in delays in completing the year-end close, preparing the financial statements, and finalizing the single audit reporting package in a timely manner. Late submission of the single audit reporting package may jeopardize the Organization's standing with federal awarding agencies and could affect the Organization's ability to receive future federal funding. Auditors' Recommendations: Management should establish a formal single audit submission timeline with clearly defined milestones, responsible parties, and target completion dates beginning at the start of each fiscal year. The timeline should work backward from the submission deadline to establish interim deadlines for year-end close, draft financial statement preparation, management review, and auditor fieldwork. Given the recurring nature of this finding, management should also consider engaging its external auditors earlier in the process and ensuring that adequate finance staffing is in place prior to the year-end close. Progress against the submission timeline should be monitored by the CEO and reported to the Board of Directors. Management's Response: Management has created standard operating procedures and instructions in order to adhere to established quarterly and annual deadlines including quarterly board reporting and treasurer review for adherence to deadlines.