Finding Text
Condition: The auditee did not submit its data collection form and reporting package to the Federal Audit Clearinghouse by the required deadline for the fiscal year ended June 30, 2025. Criteria : 2 CFR 200.512(a) requires the auditee to submit the audit, data collection form, and reporting package to the Federal Audit Clearinghouse (FAC) no later than the earlier of 30 calendar days after receipt of the auditor’s reports or (2) nine months after the end of the audit period, unless an extension has been authorized by the cognizant or oversight agency for audit. Cause: The delay in submission was due to the audited financial statements not being prepared in a timely manner. As described in Finding 2025-001, the auditee has a material weakness in internal control over financial reporting related to the financial statement preparation process, including inadequate review procedures and insufficient resources to ensure timely completion of the audited financial statements. Effect: Because the audited financial statements were not completed timely, the auditee was unable to meet the FAC submission requirements under 2 CFR 200.512. This resulted in noncompliance with federal regulations. Repeat Finding: No. Recommendation: We recommend the auditee strengthen its internal control over financial reporting by implementing procedures to ensure timely preparation, review, and issuance of the audited financial statements. This should include clearly defined responsibilities, enhanced review controls, and a formal closing and reporting timeline designed to meet Uniform Guidance reporting deadlines. View of Responsible Officials: Management acknowledges the reporting package and Data Collection Form were not submitted to the Federal Audit Clearinghouse by the required deadline due to delays in completing the audited financial statements, as discussed in Finding 2025-001. Management has addressed the staffing challenges which caused the delay by evaluating resource needs, filling key positions, and improving the assignment of financial reporting responsibilities. These actions are intended to support the timely completion of the annual audit and ensure compliance with future Federal Audit Clearinghouse reporting deadlines.