Finding Text
Condition and Context: The District did not establish controls to identify and monitor applicable federal reporting requirements associated with its federal awards. As a result, the District did not submit its Single Audit reporting package to the Federal Audit Clearinghouse by the required deadline of March 31, 2026. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) §200.303 requires non-Federal entities to establish and maintain effective internal control over Federal awards that provides reasonable assurance the entity is managing the awards in compliance with Federal statutes, regulations, and the terms and conditions of the award. Additionally, 2 CFR §200.512(a) requires the audit reporting package to be submitted 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 audit period. Cause: The District had not established procedures to identify when Federal expenditures triggered Single Audit requirements or to monitor and ensure compliance with applicable Federal reporting deadlines. Effect: The District did not timely submit its Single Audit reporting package to the Federal Audit Clearinghouse. Failure to comply with Federal reporting requirements may result in increased oversight by granting agencies and could affect the District's continued eligibility for current or future Federal funding. Recommendation: The District should establish procedures to identify applicable Federal compliance requirements upon acceptance of Federal awards, monitor cumulative Federal expenditures to determine when a Single Audit is required, assign responsibility for monitoring reporting deadlines, and maintain a compliance calendar to ensure timely submission of all required Federal reports and the Single Audit reporting package. The District's Response: The District’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.