Finding Text
Untimely Completion of the Single Audit Criteria: Pursuant to 2 CFR §200.512(a), non-Federal entities expending $750,000 or more in federal awards during the fiscal year are required to complete and submit the Single Audit reporting package and Data Collection Form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's reports or nine months after the end of the fiscal year. Condition: The audit for the year ended December 31, 2022, was completed approximately three years after the fiscal year-end due primarily to prolonged delays in management's responses to audit requests and the untimely submission of required supporting documentation. Cause: Management did not maintain effective controls to ensure timely coordination of the audit process, including assigning responsibility for responding to audit requests, monitoring the status of outstanding requests, and providing complete and timely information necessary to complete the audit. Effect: As a result of the delays, the audit was completed well after the Uniform Guidance reporting deadline. Untimely completion of the Single Audit may affect federal awarding agencies' and passthrough entities' ability to monitor the entity's compliance with federal program requirements and may expose the entity to increased oversight or other administrative actions. Questioned Costs: None Recommendations: We recommend management establish formal procedures to ensure timely completion of future audits. Such procedures should include assigning responsibility for audit coordination, maintaining a tracking system for auditor requests, establishing internal deadlines for providing requested documentation, and monitoring the progress of the audit through regular communication with the audit team. Management should also ensure that sufficient personnel and resources are available during the audit to respond promptly to auditor inquiries and information requests. Management's View: Management agrees with this finding.