FAC Explorer

Finding 1223565 (2021-001)

Material Weakness Repeat Finding
Requirement
ABCEFGHIJLMNP
Questioned Costs
-
Year
2021
Accepted
2026-07-13
Audit: 406972
Organization: TOWN OF LEXINGTON (MA)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The Town missed the deadline for submitting the single audit report for fiscal year ending June 30, 2021, which was due by September 30, 2022.
  • Impacted Requirements: This delay violates the compliance requirement outlined in 2 CFR 200.512(a) of the Uniform Guidance.
  • Recommended Follow-Up: The Town should establish formal internal controls to ensure timely submission of future audit reports.

Finding Text

2021-001 Timely Filing of Single Audit Report Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement According to 2 CFR 200.512(a) of the Uniform Guidance, auditees are required to submit the audit report within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Timely submission of the single audit report is essentially for ensuring compliance with federal requirements. Condition and Context The Town’s filing with the Federal Audit Clearinghouse (FAC) for fiscal year ended June 30, 2021 has not been submitted by its due date of September 30, 2022. Cause Delays in the federal single audit process led to the delay in the federal single audit being completed. Effect or Potential Effect Delays in the single audit resulted in the FAC deadline being missed. Not submitting the single audit report timely constitutes non-compliance with federal audit requirements. No questioned costs are reported as this requirement is administrative in nature. Recommendation The Town should implement formal internal control policies and procedures to rectify the conditions noted above. Views of Responsible Official Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.

Corrective Action Plan

Audit Finding Reference: 2021-001 Timely Filing of Single Audit Report Planned Corrective Action: The Town of Lexington, including the municipal and school finance departments, will jointly address the timely filing of Single Audit reports. The preparation of the SEFA has been assumed by the Town Accountant beginning with fiscal year 2024 (previously prepared by the external audit team). Going forward, the Town has developed the following schedule to maintain timely filing within 9 months of fiscal year end: July-August Town staff perform fiscal year-end reconciliations and General Ledger close. Assistant Town Manager for Finance to schedule kick-off meeting with CBiz Audit team; establish audit calendar/timeline. Responsible Personnel Municipal and School finance teams; CBiz Single Audit team September-October School Lunch data to be provided by School Finance to Town Accountant by September 30th. SEFA to be completed by the Town Accountant and sent to CBiz by October 31st. Responsible Personnel Town Accountant, School Finance Director October-February Receipt of detailed audit request list from CBiz Audit team. Sample testing to be divided between Municipal and School transactions (split by Town Accountant if initially combined). Town Accountant and School Finance Director to monitor and ensure their respective requests are processed within 10 business days. Same with follow-up questions/requests. Suralink platform to be utilized for item tracking and completion. Audit team communications should include both School and Municipal staff to ensure coordination Responsible Personnel Town Accoutant; School Finance Director March Review Audit report and findings. Completion and submission of Single Audit, in conjunction with primary audit, by March 31st. Responsible Personnel Assistant Town Manager for Finance; Assistant Superintendent for Finance and Operations Planned Implementation Date of Corrective Action: The Town of Lexington, including municipal and school finance departments, intends to complete all outstanding Single Audits from fiscal years 2022-2025 within the next 12 months, ending June 30, 2027. Future Single Audits will adhere to the timeline above. Person Responsible for Corrective Action: Carolyn Kosnoff, Assistant Town Manager for Finance

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1223562 2021-001
    Material Weakness Repeat
  • 1223563 2021-001
    Material Weakness Repeat
  • 1223564 2021-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $361,740
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $178,884
10.555 NATIONAL SCHOOL LUNCH PROGRAM $135,971
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $82,544
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $77,700
84.027 SPECIAL EDUCATION GRANTS TO STATES $34,514
93.498 PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION $28,903
21.019 CORONAVIRUS RELIEF FUND $15,460
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $10,846
84.425 EDUCATION STABILIZATION FUND $10,322
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $8,500
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $1,101