Finding Text
2021-004 — Late Audit Report
Federal program information:
Funding agency: All
Title: All
ALN: All
Award period: Various
Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (June 30, 2022).
Condition: CBNHC’s fiscal year 2021 single audit reporting package was not submitted by the due date of June 30, 2022.
Context: N/A
Questioned Costs: None
Cause: CBNHC was significantly impacted by the COVID-19 pandemic, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards.
Effect: CBNHC was unable to completely reconcile certain general ledger accounts timely, which resulted in significant audit adjustments. As a result, the audit started late and was not issued within the reporting deadline.
Auditor’s Recommendations: The Accounting department should be analyzed, and functions/duties re-assigned and/or additional personnel hired to ensure that monthly and annual account reconciliations are performed timely to ensure that the data collection form and reporting package are submitted by the due date.
Management’s Response: As documented in response to finding 2021-001, a timeline was produced to demonstrate that CBNHC was extremely short-staffed, which caused it to fall behind in its accounting functions. CBNHC continued to experience operational disruptions caused by turnover of key administrative positions and the COVID-19 pandemic. The reconciliation of the general ledger and closing of the financials fell behind. CBNHC subsequently relied on an accounting consultant to assist in reconciling its books and preparing its financial statements. However, there were limitations in CBNHC’s ability to reconcile its specialized medical insurance billings and PRC program expenditures due to lack of knowledge of the health care management system, namely the Resource Patient Management System (RPMS). CBNHC has since hired RPMS experienced personnel and is current in managing the monthly close of the patient financial system. CBNHC will continue with a late audit report finding for fiscal year 2022, with the goal of being on track for its fiscal year 2023 reporting.