Finding Text
Failure to Obtain a Required Single Audit in a Timely Manner Criteria – Title 2, U.S. Code of Federal Regulations §200.501 requires a non-Federal entity that expends $750,000 or more in Federal awards during its fiscal year to obtain a Single Audit conducted in accordance with Uniform Guidance. Federal reporting requirements require the audit reporting package to be submitted to the Federal Audit Clearinghouse within the required timeframe. Condition – The City expended more than $750,000 in Federal awards during the fiscal year ended June 30, 2024. The City did not obtain a Single Audit within the required timeframe because management was unaware that the expenditure of Federal awards triggered the Single Audit requirement. Cause – The City’s management did not have procedures in place to monitor Federal expenditures and evaluate whether additional Federal audit requirements were applicable. As a result, management was not aware that a Single Audit was required. Effect – The City was not in compliance with Federal Single Audit requirements. In addition, Federal agencies and pass-through entities did not receive timely assurance regarding the City's compliance with applicable Federal program requirements. Recommendation – The City should establish procedures to monitor Federal expenditures throughout the year and assess whether expenditures exceed the Single Audit threshold. Management should communicate Federal funding activity to the auditors timely to ensure all applicable audit requirements are identified and completed within the required deadlines. Response and Corrective Action Planned – The City will implement procedures to track Federal expenditures and evaluate Single Audit requirements on an ongoing basis. Management will communicate Federal funding information to its auditors before the audit begins to ensure any required Single Audit is performed and submitted timely. Conclusion – Response accepted.