Finding Text
Finding Number: 2023-013 Prior Year Finding Number: 2022-005 Programs: Multiple Federal Programs Compliance Requirement: Reporting – Data Collection Form and Reporting Package Criteria --- In accordance with 2 CFR §200.512, the audit reporting package must be submitted to the Federal Audit Clearinghouse within the required timeframe. Condition --- The reporting package for the fiscal year ended September 30, 2023, was not submitted within the required deadline. Questioned Costs --- Not applicable Context --- The issue was identified through compliance review procedures. Effect --- Failure to submit the reporting package timely may result in sanctions, including potential reduction or loss of Federal funding. Cause --- Management did not have sufficient resources to ensure timely submission. Recommendation --- We recommend that management enhance staffing capacity and strengthen internal controls to ensure timely submission of required reports. Views of Responsible Officials: Management acknowledges the findings and provides the following context regarding the delay in submission of the FY 2023 compliance reports. During FY 2023, the Internal Control Memoranda used to guide and review program operations contained information that changed during the fiscal year due to the restructuring of the ARP Division and the implementation of the Grant Administrator role. These organizational changes impacted reporting lines and oversight responsibilities, and the Internal Control Memoranda were not updated in real time to fully reflect these changes. To ensure timely submission of the quarterly compliance reports, the reporting process was updated to remove the multi-level review requirement. The reports are highly detailed and require significant compilation and reconciliation within a limited timeframe between the close of the reporting period and the submission deadline. Eliminating the multi-level review process allowed management to meet reporting deadlines more efficiently. It is also important to note that the compliance reports are cumulative reports, which allows for corrections or updates to be incorporated in subsequent quarterly submissions, thereby maintaining overall reporting accuracy over time. Additionally, copies of all submitted reports are provided to both the CFO and the Executive Director (ED) for review and oversight. If changes are required, they are reporting in the subsequent quarterly submission. Further strengthening financial oversight, the CFO requires all direct reports to submit monthly to bi-monthly financial reports. These reports are used to continuously monitor program performance, identify any discrepancies, and address issues in a timely manner. Management remains committed to strengthening internal controls and ensuring the timely and accurate submission of all required federal reporting.