Finding Text
Untimely Submission of the Single Audit Reporting Package – Federal Agency: U.S. Department of Health and Human Services. Award Name: Health Center Program, HHS Bridge Access Program for COVID 19 Vaccines and Treatments, Maternal and Child Health Services Block Grant to the States, and Opioid STR – Doorway for Substance Use-Related Supports and Services. Program Year: October 1, 2024 – September 30, 2025. Assistance Listing Number: 93.224, 93.527, 93.994 and 93.788. Type of Finding: Noncompliance with Uniform Guidance reporting requirements. Criteria: Title 2 CFR 200.512(a)(1) requires the audit, data collection form, and reporting package to be submitted to the Federal Audit Clearinghouse within 30 calendar days after the auditee receives the auditor's reports or nine months after the end of the audit period, whichever is earlier, unless an extension is authorized by the cognizant or oversight agency for audit. Condition: The System's fiscal year ended September 30, 2025. The System's audited financial statements for that year were issued on June 9, 2026. Accordingly, the reporting package was required to be submitted on or before June 30, 2026. The System did not complete and submit the reporting package by that date. Cause: During the System's wind-down period, substantially all internal accounting personnel had been terminated, and responsibility for preparing the financial information and supporting schedules necessary to complete the audit was transitioned to external consultants. Delays in completing the financial close, preparing an accurate Schedule of Expenditures of Federal Awards, and providing supporting documentation prevented timely completion and submission of the reporting package. Effect: The System did not comply with the reporting deadline established by 2 CFR 200.512(a)(1). Questioned Costs: None. Recommendation: We recommend that management establish a formal process for monitoring Uniform Guidance reporting deadlines, assigning responsibility for completion of the audit and data collection form, establishing interim milestones for completing the financial statements and Schedule of Expenditures of Federal Awards, and escalating delays to management and those charged with governance sufficiently in advance of the required filing date. View of Responsible Officials: Management agrees with the finding. During the System's wind-down period, substantially all internal accounting personnel had been terminated, and responsibility for preparing the financial information and supporting schedules necessary to complete the audit was transitioned to external consultants. Delays in completing the financial close, preparing an accurate Schedule of Expenditures of Federal Awards, and providing supporting documentation prevented the System from completing and submitting the single audit reporting package by the required filing date. Management has engaged additional qualified external accounting resources to assist with completing the financial close, preparing the Schedule of Expenditures of Federal Awards, providing the supporting documentation necessary to complete the audit, and completing the data collection form and single audit reporting package. Management has also established additional monitoring and oversight procedures for the System's remaining federal reporting obligations, including assigning responsibility for required reporting activities, identifying applicable reporting requirements and submission deadlines, establishing interim milestones, monitoring progress toward completion, and communicating potential delays to management and the Board of Trustees. Management will maintain sufficient accounting resources and appropriate monitoring and oversight procedures through completion of the single audit submission and the System's remaining federal reporting obligations.