Finding Text
Finding 2025-002 - Untimely Submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse (Repeat) Programs: Entity-wide, all federal awards Compliance Requirement: Audit submission, 2 CFR 200.512 (nine months after fiscal year end) Classification: Noncompliance Criteria: 2 CFR 200.512(a) requires submission of the single audit reporting package to the Federal Audit Clearinghouse within nine months after fiscal year end (June 30, 2026 for the fiscal year ended September 30, 2025). Condition: The fiscal year 2025 single audit is the fourth consecutive audit completed near or after the regulatory deadline. The fiscal year 2022, 2023, and 2024 packages were each submitted late; the fiscal year 2024 package was submitted in March 2026, approximately nine months late. Cause: Delays in audit readiness, including accounting system recovery issues in prior years, delayed availability of client records and monitoring documentation, and compressed engagement timelines. Effect: High-risk auditee designation; the Texas Department of Housing and Community Affairs withheld CEAP award funding as a direct consequence; and potential for additional grantor sanctions and enhanced monitoring. Questioned Costs: None Repeat Finding: Yes. Repeat of Finding 2024-004; fourth consecutive year. Recommendation: Adopt a board-approved audit readiness calendar with records closed and reconciled within 90 days of fiscal year end; engage the auditor by December; deliver complete supporting documentation by February; and target Federal Audit Clearinghouse submission by April each year. Views of Responsible Officials and Planned Corrective Action: Management's response is presented in the accompanying Corrective Action Plan.