Finding Text
Program All Federal Programs Criteria PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2024. Various audit adjustments were also made to the original schedule provided. Cause Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.