Finding 381255 (2022-002)

Criteria 2 CFR section 207.512 of the Uniform Guidance (UG) states that the audit filing must be submitted to the Federal Audit Clearinghouse (FAC) the earlier of 30 days after receipt or within 9 months of the Organization’s fiscal year end. Condition The current year audit filing will be late. Cause Similar to finding 2022-001, employees in the Organization’s finance and accounting department during this period did not have established procedures to ensure the consolidated financial statements and the schedule of expenditures of federal awards (SEFA) were prepared timely. Effect The late audit filing results in noncompliance with program requirements. Context The Organization has since implemented procedures to ensure reports are prepared timely but during this period, a significant amount of work was necessary by the Organization’s finance and accounting department to update the underlying accounting records so that the consolidated financial statements and SEFA could be prepared. As a result of the work necessary, the reports were not prepared timely. Questioned Costs None. Repeat Finding from Prior Year Repeat finding, see finding 2021-001 in the Summary Schedule of Prior Audit Findings. Recommendation We recommend the Organization ensure the established procedures are followed so that future audit filings are timely. Views of Responsible Officials Management concurs with the finding and will ensure that the established procedures are followed.