Finding Text
Criteria: 45 CFR § 75.512, Report Submission, requires completion of an audit and submission of the data collection form and reporting package within the earlier of thirty calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. Condition: The audit and data collection form are being submitted after the required due date. Cause: The Organization had turnover in key areas and did not maintain appropriate levels of staff to ensure audit information was provided timely in order to ensure compliance with regulatory filing requirements. Effect: Noncompliance with the requirements of 45 CFR § 75.512. There is a potential for suspension or cessation of federal funding under the federal award. Recommendation: The Organization should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and audited within nine months after year end. Client Response: Client has implemented staffing it is anticipated that the audit for 2025 and related forms will be issued within the allowable time period in the loan agreements.