Finding Text
Finding Reference: 2024-003 - Single Audit Report Was Not Submitted Timely Federal Agency: Department of the Treasury Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Federal Program: Arts and Culture District Program Grant Award: ABID-22-2022 Condition/Context: The single audit report was not submitted to the Office Management and Budget in accordance with the reporting requirement. Criteria: COSO/Internal Control Framework defines control activities as “policies and procedures that help ensures management’s directives are carried out” This would include preparation of the Schedule of Expenditures of Federal Awards and the related Data Collection Form in a timely manner. Uniform Guidance 2 CFR 200.501 states that the audit shall be completed, and the data collection form shall be submitted within the earlier of 30 days after the receipt of the auditor’s report, or nine months after the end of the audit period. Accordingly, the audit for the nine months ending September 30, 2024 would be due on June 30, 2025. Cause: The Single Audit Report was not submitted within the required timeframe due to delays in completing the reconciliation of financial schedules and the Schedule of Expenditures of Federal Awards (SEFA). Effect: As a result, management was unable to finalize the financial information necessary for the timely completion and submission of the audit report. Questioned Costs: None Recommendation: We believe that the year-end closing process could proceed in a timely manner by adhering to a closing schedule and maintaining timely account reconciliations. Progress should be monitored by management to determine that due dates are being met and required reports are submitted to regulatory agencies within the compliance time frame.