Finding 1239870 (2024-003)

2024-003 - Late Completion of the Single Audit and Submission of the Reporting Package and Data Collection Form Finding Type: Noncompliance. Repeat Finding: Yes; prior year finding 2023-002. Status: Repeated. Although the circumstances contributing to the current-year delay differed from those identified in the prior year, the Organization again did not meet the required Federal Audit Clearinghouse submission deadline. Criteria: The Uniform Guidance, 2 CFR 200.512(a)(1), requires the audit to be completed and the data collection form and 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. For the six-month period ended June 30, 2024, the required submission deadline was March 31, 2025. Condition/Finding: The Organization’s Single Audit for the six-month period ended June 30, 2024, was not completed by the required deadline of March 31, 2025. The audit was completed on May 12, 2025, 42 days after the required deadline. Consequently, the related reporting package and data collection form were not submitted to the Federal Audit Clearinghouse within the required timeframe. This condition affected the Organization’s required Single Audit submission for the six-month period ended June 30, 2024. Cause: The Organization changed its fiscal year-end from December 31 to June 30, resulting in a shortened six-month transition period and requiring management to modify its established year-end closing, reconciliation, financial reporting, and audit-preparation processes. The Organization did not establish a sufficiently detailed transition plan and monitoring process with clearly assigned responsibilities and interim completion dates. As a result, year-end processing, account reconciliations, and preparation of audit-support schedules were delayed, which prevented the audit from being completed by the required deadline. Effect: As a result, the Organization did not comply with the Single Audit reporting requirements of the Uniform Guidance. The delay also prevented federal awarding agencies, pass-through entities, and other users of the Federal Audit Clearinghouse from receiving the required audited information within the prescribed timeframe. In addition, the untimely submission prevents this audit period from satisfying one of the criteria used in determining eligibility for low-risk auditee status and reduced audit coverage in future periods Questioned Costs: None. Recommendation: We recommend that management establish and monitor a formal year-end closing and audit-readiness plan designed to provide sufficient time for completion of the audit and submission of the reporting package and data collection form by the applicable Federal Audit Clearinghouse deadline. The plan should establish responsible individuals and interim completion dates for account reconciliations, financial reporting schedules, federal award information, and other audit-support documentation. Management should periodically monitor progress against the plan, promptly address delays, and communicate significant matters to those charged with governance and the auditors sufficiently in advance of the filing deadline. View of Responsible Officials (Corrective Action): See corrective action plan.