Finding Text
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 Institute did not complete the filing within 9 months of the fiscal year ended June 30, 2025. 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 change to new audit firm, locating supporting documents for items selected for testing and errors in the general ledger reconciliations, the audited financial statements were not completed timely. Effect The required reporting was not completed until September 2026. Recommendation The Institute should put procedures in place to ensure accurate reporting of general ledger accounts and locating supporting documents 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 Management agrees with the finding and recommendation. There has been a change in leadership at the Institute. The Institute recognizes the importance of completing the annual audit and submitting the data collection form and audited financial statements to the Federal Audit Clearinghouse within the required nine-month period. Management will move from paper-based to an electronic system in order to facilitate future audits or document requests. We will strengthen year-end close and audit preparation procedures, including monthly reconciliation of general ledger accounts, organization of supporting documentation, and coordination with the independent auditors to support timely completion of future audits. The Institute has established an audit preparation and close schedule with assigned responsibilities and target completion dates. General ledger accounts will be reviewed and reconciled monthly and as part of the year-end close, and audit supporting documentation will be organized and maintained in a centralized location to facilitate timely retrieval. Management will monitor the audit timeline and outstanding requests to support submission to the Federal Audit Clearinghouse within the required deadline.