Finding Text
Condition
The Municipality did not submit the Data Collection Form and Reporting Package to the
Federal Clearinghouse for the fiscal year ended June 30, 2022, into the following nine
months after fiscal year ended, as required.
Criteria
2 CFR § 200.512 Report Submission, (a) (1) The audit must be completed, and the data
collection form described in paragraph (b) of this section and reporting package described
in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after
receipt of the auditor’s report(s), or nine months after the end of the audit period.
Effect
The Municipality did not comply with the submission date required to the Federal
Clearinghouse, this could affect the continuance and new approvals of federal programs
funds. In addition, the Municipally cannot be considered by the auditor as a low-risk auditee
for the next two years.
Cause
The Municipality was unable to provide timely the financial statements and related
supporting documentation in order to apply required audit procedures.
Questioned Costs
Not determined
Recommendation
The Municipality should enforce the financial statements preparation process will be on a
timely basis. The Municipality needs too, to implement adequate internal controls
procedures in order to assure that the supporting documentation is available in a timely
manner.
Management Response and Corrective Action
The Finance Department will implement additional internal controls to manage the financial
statement process in a timely manner as recommended.