Finding 2023-002 Late Submission of Single Audit Reporting Package and Data Collection Form Federal award: Assistance Listing No. 21.027, Coronavirus State and Local Fiscal Recovery Funds Auditor Description of Condition and Effect Subsequent to the original issuance of the Organization's financial statements, additional expenditures of federal awards applicable to the year ended December 31, 2023, were identified. The additional expenditures caused the Organization's total federal awards expended to exceed the threshold requiring a Single Audit. Consequently, the Single Audit reporting package and data collection form were not submitted to the Federal Audit Clearinghouse by the required deadline. The additional federal expenditures were identified after the grantor clarified the period in which certain federally funded expenditures should be recognized. As a result, the Organization did not comply with the Single Audit reporting deadline, and the required audit information was not available to federal agencies and other users within the prescribed timeframe. Auditor Recommendation Management should strengthen its procedures for monitoring federal award activity, including promptly resolving questions with grantors regarding the timing and reporting of federal expenditures. Before issuing the financial statements, management should document the federal expenditures attributable to the reporting period and determine whether the total expenditures require a Single Audit. Proposed Corrective Action The Organization agrees with the finding. After the original financial statements were issued, the grantor clarified the period in which certain federally funded expenditures should be recognized. This clarification caused additional federal expenditures to be reported for 2023 and resulted in the Organization exceeding the Single Audit threshold after the original submission deadline. The 2023 reporting package and data collection form are expected to be submitted by September 10, 2026. Management will implement an annual federal awards closeout process that reconciles grant activity, resolves expenditure-recognition and cutoff questions with grantors, documents the federal expenditures attributable to the fiscal year, and evaluates the Single Audit threshold before the applicable filing deadline. Responsible Person: Anticipated Completion Date: September 10, 2026