Finding Text
Ill. FINANCIAL STATEMENT FINDING / FEDERAL AWARD FINDING Financial Statement Finding - Item 2025-001 - Annual Audit Federal Award Finding - Item 2025-001 - Annual Audit U.S. Department of Health and Human Services Head Start - ALN 93.600 U.S. Department of Energy Weatherization Assistance for Low-Income Persons - ALN 81.042 Criterion: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) require that grant recipients that expend $750,000 or more in federal awards in a fiscal year have a single audit conducted in accordance with 45 CFR Part 75, Subpart F and submit the related audit reports electronically to the Federal Audit Clearinghouse within the specified time frame. The Official Code of Georgia, Annotated §36-81-7 requires an annual audit of the financial affairs, transactions of all funds and activities of the local government for each fiscal year of the local government. The audit report must contain financial statements prepared in conformity with generally accepted governmental accounting principles. The annual audit report of the local government shall be completed and a copy forwarded to the state auditor within 180 days after the close of the local government's fiscal year end. Condition: The required annual audit of the financial statements for the year ended June 30, 2025 was not completed and submitted to the federal and state governments within the time frame required by Federal Regulations and the State of Georgia. Cause and Effect: The Organization experienced disruption in normal business operations due to the COVID-19 pandemic and a turnover in finance and accounting personnel and audit firms. This delayed the audit completion process starting in fiscal year 2021. The extended delay with the fiscal year 2021 audit has caused the subsequent audits to be delayed. Recommendation: We recommend that all financial reporting and submission requirements and deadlines required by federal and state regulation be adhered to for future periods. View of Responsible Officials: The Organization agrees with this finding and has developed a corrective action plan to address.