Finding Text
Audit Finding Reference Number 2024 – 010 – Late Submission of Audit Report Federal Program and Specific Federal Award Identification ALN Title and Number 84.007 Federal Supplemental Educational Opportunity Grants (SEOG) 84.033 Federal Work-Study Program (FWS) 84.063 Federal PELL Grant Program (PELL) 84.268 Federal Direct Student Loans (Direct) Federal Award Number June 30, 2024 Federal Agencies U.S. Department of Education Pass-Through Entity Not applicable Criteria Pursuant to the requirement of Uniform Guidance 2 CFR Part 200 §512(a), Single audits are required to be completed and the data collection form and reporting package submitted within the earlier of thirty (30) days after receipt of the auditor’s report, or nine (9) months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal Holiday, the reporting package is due the next business day. Condition and Context The June 30, 2024 Single Audit reporting package, including the Data Collection Form, was not submitted within the timeframe required by 2 CFR 200 §512 (a). Specifically, the reporting package remained outstanding more than nine (9) months after the entity’s fiscal year. Cause ABC did not establish and implement adequate procedures to ensure the Single Audit was completed and the reporting package, including the Data Collection Form, was submitted within the timeframe required by Uniform Guidance. Specifically, management did not effectively monitor the audit reporting timeline or provide the information necessary to facilitate timely completion and submission of the audit report. Questioned Costs For purposes of this condition, I have no questioned cost. Effect As a result, ABC did not comply with the reporting requirements of Uniform Guidance 2 CFR Part 200 §512 (a) by failing to submit the Single Audit reporting package within the required timeframe. Untimely submission of the audit report may delay federal agencies' oversight of the institution's administration of federal awards and may subject the institution to increased monitoring or other administrative actions by the federal awarding agency. Repeat Finding Yes. See Schedule of Prior Year Audit Finding 2023-010. Recommendation I recommend that ABC strengthen its procedures for monitoring the Single Audit reporting process to ensure the audit is completed and the reporting package is submitted within the timeframe required by Uniform Guidance. Management should establish an audit timeline with key milestones, assign responsibility for providing requested financial records and supporting documentation to the auditors on a timely basis, periodically monitor progress toward the submission deadline, and implement supervisory oversight to ensure compliance with the reporting requirements of 2 CFR §200.512(a). Management’s Response The Institution concurs with this finding. With new leadership and administration, Arkansas Baptist College will adhere to its policies, procedures, processes, and federal guidelines as it relates to completing and submitting the audit. Arkansas Baptist College has a new CFO and controller. These measures will ensure stability and a timely audit.