Finding Text
Finding:2023-002 Material weakness – Improper supervision of single audit Criteria:According to 2 CFR § 200.512(a), auditees must submit the data collection form and reporting package within nine months after the end of the audit period or 30 days after receiving the auditor’s report, whichever is earlier. Condition:The entity did not submit its Single Audit report to the Federal Audit Clearinghouse (FAC) within the required deadline of nine months after the fiscal year-end. Questioned Costs: None noted Context and Effect: The late submission could result in noncompliance with federal grant requirements, potential withholding of future federal funding, and reputational harm to the entity. Cause:The delay was due to inadequate internal controls over the audit process, including lack of proper monitoring of deadlines, delayed financial statement preparation, and coordination issues between the entity and the external auditor. Repeat Finding:No Recommendation:Management should establish and implement a robust tracking system to monitor reporting deadlines, ensure timely financial statement preparation, and improve coordination with external auditors. Additionally, assigning a compliance officer or designated staff member responsible for tracking audit progress and submission deadlines can help prevent future delays. Response Management agrees with this finding.