Finding Text
Finding Number: 2024-002 – Late Single Audit Report Submission Federal Agency: United States Agency for International Development Federal Program: Strengthening Transparency and Accountability through Investigative Reporting in Europe and Eurasia Assistance Listing Numbers: 98.001 Award Identification Number and Year: N/A Criteria or Specific Requirement: Per 2 CFR §200.512(a), non-Federal entities that expend $750,000 or more in Federal awards during their fiscal year are required to complete and submit their Single Audit report to the FAC within nine months of the end of their fiscal year or within 30 days of receiving the auditor’s report, whichever is earlier. Condition: IJD did not submit its Single Audit report for the fiscal year ending December 31, 2024 to the Federal Audit Clearinghouse (FAC) within the required nine-month deadline. Cause: The late submission was due to a number of factors, including turnover in key positions on the finance team, accounting system changes and overall lack of resources available dedicated to completing the annual audit in a timely manner. Effect or Potential Effect: Failure to submit the Single Audit report by the required deadline results in noncompliance with Federal regulations, potentially delaying Federal oversight and impacting IJD’s ability to access Federal funding in the future. Questioned Costs: None. Context: This finding is considered systemic rather than isolated. The entity has not had prior findings related to late submissions in recent years. However, the combination of new financial system implementation and staff turnover created unusual circumstances that delayed preparation of accurate financial information and completion of the audit. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that IJD implement controls to ensure timely submission of the Single Audit report, such as: 1. Establishing internal timelines that allow for adequate review and submission well before the due date. 2. Enhancing oversight of the audit process to monitor compliance with Uniform Guidance deadlines. 3. Providing training to relevant personnel on Federal reporting requirements.