Finding Text
Finding 2025-003 Reporting - Timely Submission of Financial Reports – Noncompliance and Significant Deficiency in Internal Control over Compliance Agency: Department of Health and Human Services Program: ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year: 2024 Criteria or Specific Requirement: 2 CFR subtitle A Chapter II part 200 subpart F section 200.512 states that “(1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section 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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.” Condition: The Federal data collection form and reporting package were not filed on time. Cause: There were limited personnel resources at the Borough to assist in the timely completion of the Borough’s audit. Effect or potential effect: Federal funds could potentially be expended on unallowable activities and for unallowed costs, and outside the period of performance. Questioned Costs: None noted. Context: The Form SF-SAC is due nine months after the fiscal year-end. The form for the fiscal year ended June 30, 2025 was filed late. Identification as a Repeat Finding: Yes. Finding 2024-003 Significant Deficiency in Internal Control over Compliance and Noncompliance Recommendation: The Borough should evaluate resources allocated to staffing to ensure it has the capacity to adequately prepare and assist in the timely execution of the audit. Views of responsible officials: Management agrees with the finding and has engaged additional accounting resources and expertise.