Finding Text
U.S. Department of Agriculture – 10.558 Child and Adult Care Food Program 2025-004 Untimely Submission of Single Audit Reporting Package to the Federal Audit Clearinghouse Criteria: Uniform Guidance (2 CFR 200.512) requires the auditee to submit the reporting package (including the audited financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, and corrective action plan, as applicable) to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the end of the audit period. Management is responsible for preparing the reporting package and ensuring timely submission, including providing the auditor with requested documentation necessary to complete the audit in a timely manner. Condition: For the year ended December 31, 2025, the auditee did not submit the Single Audit reporting package to the Federal Audit Clearinghouse by the required due date of September 30, 2026. Cause: The untimely submission occurred because the audit was delayed when management did not provide requested audit documentation timely. As a result, the auditor was unable to complete required audit procedures and issue the auditor’s report(s) within the timeframe necessary for management to submit the reporting package by the applicable due date. Effect: Failure to submit the Single Audit reporting package within the required timeframe may result in noncompliance with Uniform Guidance reporting requirements and could increase the risk of federal awarding agency or pass-through entity scrutiny, including potential delays in grant funding, withholding of award payments, or other administrative actions. Questioned Costs: None noted. Recommendation: We recommend that management implement and/or strengthen procedures to ensure timely completion of the audit and submission of the reporting package to the Federal Audit Clearinghouse. At a minimum, management should assign appropriate personnel and provide sufficient resources to support timely audit readiness, including advance preparation of key schedules and supporting documentation. Views of Responsible Officials and Planned Corrective Actions: Responsible Person(s): ECA Executive Director/Whittle Strategic Accounting Anticipated Completion Date: November 2026 In September 2026, the Organization terminated its contract with the previous accounting services provider and engaged Whittle Strategic Accounting. Whittle Strategic Accounting has a proven history of working with nonprofit organizations, many of whom are audited, and they have systems and processes that will provide better controls over the accuracy and timeliness of the financials. As part of their regular monthly close processes, Whittle Strategic Accounting prepares financials and workpapers in a manner that allows for a more seamless audit. This will reduce the amount length of time that it takes for an audit to be preformed and will allow the Organization to file required reports with the Federal Audit Clearinghouse in a timely manner. ECA Management will ensure that all materials necessary for audit review will be maintained and reviewed monthly. Monthly board and committee minutes will be maintained in a secure online file folder, accessible upon request for audit reporting.