Finding Text
CRITERIA The Uniform Guidance requires the reporting package and Data Collection Form be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. CONDITION AND CONTEXT UHU was required to submit the reporting package and the Data Collection Form for the year ended December 31, 2023, by September 30, 2024. Due to delays in prior year audits, UHU was unable to submit the required reports by the deadline. CAUSE These deficiencies occurred because the audit of UHU’s financial statements and federal programs was not completed in a timely manner, and therefore the reporting package and Data Collection Form could not be submitted by the required deadline. This issue affects all federal programs included in the audit. In addition, management did not have effective controls in place to ensure timely completion of the audit process or to monitor readiness for reporting, including the timely preparation and reconciliation of financial information necessary to support the audit and reporting requirements. EFFECT OR POTENTIAL EFFECT Failure to timely submit the required reporting package and Data Collection Form results in noncompliance with federal regulations and may impact UHU’s eligibility for future federal funding or subject the organization to additional oversight. RECOMMENDATION Management should strengthen controls and oversight processes to ensure the timely completion of audits and submission of required federal reporting. This includes establishing a structured timeline for audit readiness, ensuring that financial records and supporting documentation are prepared and reconciled in advance of the audit, and actively monitoring the progress of the audit process to identify and address delays. Management should also assign responsibility for tracking reporting deadlines and implement periodic reviews to ensure compliance with Uniform Guidance submission requirements. Strengthening these processes will help ensure timely reporting and compliance across all federal programs.