Finding 1235954 (2025-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-09-21

Audit: 411563

Organization: Quinault Housing Authority (WA)

Auditor: BLUEARROW CPA

AI Summary

Core Issue: The Authority missed the deadline for submitting the Federal Single Audit report, violating compliance requirements.
Impacted Requirements: Internal controls over the reporting process were inadequate, leading to noncompliance with OMB's Uniform Guidance.
Recommended Follow-Up: Management needs to create and enforce new policies to improve internal controls and ensure timely reporting.

Finding Text

2025-002 - Deadline for Federal Single Audit -Significant deficiency in Internal Controls over Compliance Criteria Section 200.512(a)(1) Report Submission of the Office of Management and Budget’s Uniform Guidance outlines the following requirement: “The audit must be completed, and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period.” Condition The Authority did not submit the single audit reporting package to the Federal Audit Clearinghouse within nine months following their fiscal year-end as required. Cause There was a lack of established internal controls and procedures over the reporting process to ensure timely and accurate reporting. Effect Noncompliance with the Office of Management and Budget’s Uniform Guidance. Potential reduction or delay in federal and state funding, as well as the effects of being placed on high-risk status by a federal and/or state agency. Auditor's Recommendation Management should develop and implement policies regarding internal controls and procedures over the reporting process to ensure timely and accurate reporting.

Corrective Action Plan

Management Response Quinault Housing Authority agrees with the finding and will strengthen its internal controls and procedures over the annual audit and federal reporting process to ensure that future Single Audit reporting packages are completed and submitted within the timeframes required by the Uniform Guidance. Management will establish an annual audit and reporting timeline that identifies key deadlines and responsibilities for the preparation of financial records, schedules, supporting documentation, completion of the audit, and submission of the Single Audit reporting package to the Federal Audit Clearinghouse. The timeline will include internal target dates sufficiently in advance of the federal filing deadline to allow adequate time to resolve outstanding audit matters and complete the required reporting. Management will monitor the status of the audit throughout the process and will periodically communicate with the independent auditor regarding outstanding information, anticipated completion dates, and any matters that could delay issuance of the audit report. Responsibility for monitoring the federal filing deadline and confirming submission of the completed reporting package will be specifically assigned to designated personnel. These procedures are intended to provide greater oversight of the annual audit process and ensure that the Authority's Single Audit is completed and submitted timely in future years. Anticipated Completion Date September 17, 2026 Responsible Party Mariah Ralston

Other Findings in this Audit

1235952 2025-001

Material Weakness Repeat
1235953 2025-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.867	INDIAN HOUSING BLOCK GRANTS	$2.34M
21.026	HOMEOWNER ASSISTANCE FUND	$382,596