Finding Text
Condition The Education Alliance did not submit the Single Audit Reporting Package to the Federal Audit Clearinghouse prior to the March 31, 2026, deadline. Criteria Based on requirements set forth by 2 CFR section 200.512(a), the Education Alliance is required to submit the Single Audit Reporting Package to the Federal Audit Clearinghouse (FAC) by the earlier of thirty calendar days after receipt of the auditor's reports or nine months after the end of the audit period. Cause The delay in submission was due to the audited financial statements not being prepared in a timely manner. As described in Finding 2025-001, the auditee has a material weakness in internal control over financial reporting related to federal grant accounting, including inadequate controls over grant accounting and revenue recognition to ensure timely completion of the audited financial statements. Effect Because the audited financial statements were not completed timely, the auditee was unable to meet the FAC submission requirements under 2 CFR section 200.512(a). This resulted in noncompliance with federal regulations. Questioned Costs No questioned costs were identified. Recommendation We recommend the Education Alliance complete and submit all future annual Single Audits to the Federal Audit Clearinghouse prior to the required deadline to ensure all compliance requirements are met. Management Response Management will coordinate with external auditors to ensure timely completion of the audit and to ensure compliance with 2 CFR 200.512 requirements.