Finding Text
Finding 2025-001 - Reporting and Submission of Audited Financial Statements Statement of Condition In accordance with provisions of 2 CFR Part 200 Subpart F, the filing of the data collection form and submission of audited financial statement to the Federal Audit Clearinghouse is to be completed within 9 months of the fiscal year end. The Organization did not complete the filing within 9 months of the fiscal year ended June 30, 2024. Criteria The filing of the data collection form and audited financial statement are due to the Federal Audit Clearinghouse within 9 months after the end of the audit period. Cause Due to turnover in accounting staff and errors in the general ledger reconciliations, the audited financial statements were not completed timely. Effect The required reporting was not completed until July 30, 2025. Recommendation The Organization should put procedures in place to ensure accurate reporting of general ledger accounts so reporting to the Federal Audit Clearinghouse can be completed within 9 months of the fiscal year end. Views of Responsible Officials and Planned Corrective Actions (Continued) Management agrees with the finding and recognizes the importance of timely completion of the annual audit and submission of the audited financial statements and Data Collection Form to the Federal Audit Clearinghouse in accordance with the requirements of 2 CFR Part 200, Subpart F. The delay resulted from a combination of finance staff turnover, the transition in finance leadership, the extended completion timeline of the prior year's audit, and the need to further strengthen year-end financial close and audit preparation processes. In response, management has implemented and continues to enhance monthly financial close and reconciliation procedures to improve the accuracy, completeness, and timeliness of financial reporting while strengthening overall audit readiness. To further strengthen the sustainability of the finance function, management has implemented cross-training within the finance department and is centralizing key financial close and audit preparation procedures to improve consistency, preserve institutional knowledge, and reduce reliance on individual staff members. In addition, management has established a comprehensive annual audit preparation timeline that includes completing key account reconciliations and audit schedules throughout the fiscal year, conducting periodic audit readiness reviews, and engaging the independent auditors by August 15. Audit fieldwork will begin no later than September 1, with the goal of issuing the audited financial statements by December 31, well in advance of the federal reporting deadline. Management believes these corrective actions will strengthen financial reporting processes, improve audit readiness, enhance organizational resilience, and ensure future compliance with the reporting requirements of 2 CFR Part 200, Subpart F.