Finding Text
Finding 2025-001 Lack of Internal Controls over Reporting and Noncompliance Federal Agency: U.S. Department of Housing and Urban Development Federal Program(s): Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing Number(s): 14.251 Award Number: B-23-CP-AK-0008 Award Years: 2025 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: In accordance with 2 CFR Part 200, Subpart F, Section 200.512, SCC is required to submit the single audit report and Form SF-SAC within nine months of the fiscal year end or by any Office of Management and Budget extended deadlines. Condition and Context: The Form SF-SAC for the fiscal year ended June 30, 2025 was not filed timely. Cause: The audit was not completed on time to file the form. This was due to a delay in financial close and reporting as well as not timely remitting audit documentation to the auditors. Effect: SCC was not within compliance with recording requirements. Repeat Finding: This is not a repeat finding and is considered an isolated occurrence. Questioned Costs: None reported. Recommendation: We recommend that SCC implement internal control procedures to ensure the timely closing of books and records to ensure timely submission of the Form-SF SAC in the future. Management Response: Management concurs with this finding. See Corrective Action Plan.