Finding 366495 (2022-002)

Criteria: Federal single audits are required to be submitted to the Federal Audit Clearinghouse within nine months after fiscal period end date. Condition: The Organization did not submit the federal single audit for the year ended December 31, 2022 within the established deadline of September 30, 2023. Cause: There were significant delays in completing the audit due to the implementation of new accounting standards. Effect: The Organization is unable to submit the audit into the Federal Audit Clearinghouse until the financial statement audit is complete. Recommendation: The Federal single audit report must be submitted to the Federal Audit Clearinghouse in accordance with the deadlines set forth in the federal guidelines. Management’s Response: HABcore has a better understanding of the new accounting standards which classify leases as assets and liabilities and will implement procedures to track for the standards on an ongoing basis