Finding Text
Finding 2025-003 Deadline for Federal Single Audit – Reporting – Noncompliance and Internal Control over Compliance – Significant Deficiency Agency/Pass-Through Grantor: United States Department of Agriculture Environmental Protection Agency Assistance Listing Numbers (ALN) and Program Name: 10.665 – Schools and Roads Cluster 10.760 – Water and Waste Disposal Systems for Rural Communities 66.468 – Drinking Water State Revolving Fund Award Year: FY 2025 Criteria or Specific Requirement: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended June 30, 2025 were not submitted by the deadline to the Federal Audit Clearinghouse. Cause: The audit was not completed on time to file the reporting package and data collection form, due to a delay in closing the books, records, and grants. Effect or potential effect: The Schedule of Expenditures of Federal Awards was not available in a timely manner in order to allow for timely submission of Form SF-SAC Questioned Costs: None 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: Not a repeat finding. Recommendation: We recommend the Borough adopt policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. Views of responsible officials: Management concurs with this finding. Management will ensure Beginning balance reconciliations and year-end adjustments will be completed by September and will work with external auditors to have a financial statement draft prior to their fieldwork.