Finding Text
2022-05 (Significant Deficiency) Criteria: Organizations receiving federal funds are required to have monitoring policies and procedures in place to provide reasonable assurance that all compliance requirements are followed, including filing the audit of the financial statements and Single Audit reports with the Federal Award Clearinghouse within the earlier of 30 days after completion of the audit or nine months after year-end. Condition: Management did not have the audit completed within the required timeframe, such that the filing with the Clearinghouse will be late. Context: Deficiency was discovered while performing audit for Organization. Effect: The audit was performed after the due date and therefore, the filing with the Clearinghouse was late. Cause: The Organization engaged a third-party accounting firm to make accounting corrections for the period July 2020 through the current accounting period. This process helped the Organization address several findings from the June 30, 2021, audit. The accounting firm did not complete their corrections until January 2023. The CPA firm that audits the Organizations financial records did not have available staff to start the June 30, 2022, year-end audit until April 2023. As a result, the audit was not completed by the Clearinghouse?s required due date. Recommendation: The Organization is continuing to engage a third-party accounting firm to assist in recording accounting transactions for the Organization. Because the accounting firm has worked all year with the Organization expects the June 30, 2023, and future year-end closings to be prepared and delivered to the CPA audit firm sooner so that the audit can be submitted to the Clearinghouse well in advance of the required due date. Response: The Organization is currently on pace to meet the Clearinghouse filing deadline.