Finding Text
Finding: 2025-004. Programs: All. Questioned Cost: None. Compliance Requirement: L Condition: HOPE had not submitted its data collection form and single audit reporting package for the fiscal year ended September 30, 2025, to the Federal Audit Clearinghouse as of October 20, 2026. Therefore, HOPE did not meet the submission deadline established by 2 CFR 200.512(a)(1). Criteria: Title 2 of the Code of Federal Regulations, Part 200, section 200.512(a)(1), requires an auditee to submit its data collection form and reporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receiving the auditor’s reports or nine months after the end of the audit period. Accordingly, absent an authorized extension, HOPE’s reporting package for the fiscal year ended September 30, 2025, was required to be submitted no later than June 30, 2026. Cause and effect: HOPE did not have procedures in place to track the single audit reporting deadline, assign responsibility for the submission, or confirm that the reporting package was submitted on time. As a result, HOPE is not in compliance with the federal single audit submission requirements. Untimely submission of the single audit may delay federal oversight and audit-resolution activities, will affect HOPE’s eligibility to qualify as a low-risk auditee in subsequent audit periods, and could result in additional monitoring or other action by federal awarding agencies or pass-through entities. Recommendation: I recommend that HOPE establish and implement written procedures for monitoring its federal and pass-through reporting deadlines, including the single audit reporting package. These procedures should assign responsibility for the reporting package, including coordinating with the auditor, preparing the data collection form, obtaining the required certifications, and submitting the complete reporting package to the Federal Audit Clearinghouse by the applicable deadline. Someone other than the preparer should verify that the submission was completed on time. When HOPE anticipates a delay, it should notify the affected pass-through entities in advance. Views of Responsible Officials: Management agrees with this finding. The fiscal 2025 audit was not completed in time for HOPE to submit its reporting package to the Federal Audit Clearinghouse by June 30, 2026. HOPE had no written procedure to track that deadline, assign responsibility for it, or tell pass-through entities in advance about a delay. HOPE will submit the data collection form and reporting package within 30 calendar days of receiving the auditor's reports, aiming for 10 business days. Before then, HOPE will notify each pass-through entity that the package is late and give an expected submission date. HOPE will also adopt a compliance calendar for all federal and pass-through reporting deadlines and add a single audit timeline to its Resolution of Audit Findings Protocol. The CFO will coordinate each submission with the auditor. The CEO, as HOPE's certifying official, will certify and submit it. The fiscal 2026 audit is scheduled so that its reporting package is submitted by June 30, 2027.