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Finding 2022-002: Delay in Financial Reporting Assistance Listing Number and Title: 59.075 Shuttered Venue Operators Grant Program Federal Agency: Small Business Administration Federal Award Number: SBAHQ21SV004136 Grant Period: 7/12/2021 through 6/30/2022 Criteria Management is responsible for providing timely and accurate financial information. Since the Organization has expended over $750,000 of Expenditures of Federal Awards, under the Single Audit Act Amendments of 1996 and the Office of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), the Organization is required to submit the Data Collection Form and the reporting package to the Federal Audit Clearinghouse, which include the financial statements of the Organization, within the earlier of 30 days after receipts of auditor?s report, or nine month after the end of the audit period, whichever is earlier. Condition The Organization has experienced significant delays in the preparation and issuance of the 2022 financial statements and its Single Audit required under the Uniform Guidance. Cause The delay has been attributed to the lack of a Chief Financial Officer (CFO) who could fully dedicate their efforts to closing the books and records in a timely manner and preparing audit schedules. The CFO plays a critical role in overseeing the financial reporting process, ensuring compliance with accounting standards, and coordinating with internal teams and external auditors. Effect Delay in financial reporting can have several significant effects on an Organization's operations, stakeholders, and overall financial health. 1. Lack of Timely Decision Making ? Delayed financial reporting deprives management of timely and accurate financial information. This can hinder their ability to make informed decisions promptly, leading to missed opportunities or ineffective responses to financial challenges. 2. Compliance Issues and Regulatory Penalties: The Organization is required to adhere to strict reporting deadlines set by regulatory bodies, including Federal grantors. Failure to meet these deadlines can result in compliance issues and penalties, exposing the Organization to legal and reputational risks. Recommendation The Organization should expedite the process of hiring a qualified and experienced CFO who can commit full-time to the role, focusing on financial reporting and ensuring its timely completion.