Finding Text
SA 2023-001 – Noncompliance with the Single Audit Reporting Requirements
Criteria:
The following sections of the Uniform Guidance provide the following requirements:
Section §200.501 Audit Requirements:
(a) Audit required: A non-Federal entity that expends $750,000 or more during the non-Federal entity’s
fiscal year in Federal awards must have a single or program-specific audit conducted for that year
in accordance with the provisions of this part.
(b) Single audit: A non-Federal entity that expends $750,000 or more during the non-Federal entity’s
fiscal year in Federal awards must have a single audit conducted in accordance with §200.514
except when it elects to have a program-specific audit conducted in accordance with paragraph
(c) of this section.
Section §200.512 Report Submission:
(a) General.
(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. If the due date falls on a Saturday, Sunday, or Federal holiday, the
reporting package is due the next business day.
(2) Unless restricted by Federal statutes or regulations, the auditee must make copies available
for public inspection. Auditees and auditors must ensure that their respective parts of the
reporting package do not include protected personally identifiable information.
Condition:
The District failed to report federal expenditures amounting to $980,932 in FY 2022. Since the FY
2022 expenditures exceeded the $750,000 threshold, the District failed to comply with the compliance
audit requirements of the Uniform Guidance in FY 2022 and the single audit report submission with
the Federal audit Clearinghouse.
Questioned Costs
None
Recommendation:
We recommend that the District update its current internal control processes to ensure that reporting
requirements and deadlines are complied with.
Views of responsible officials and planned corrective actions:
Brian Mendenhall, Grants and Claims Unit Manager
The planned corrective actions would be as follows:
The District has been monitoring and reporting expenditures accurately and timely on all active
grants. It was a one-time issue and the District still has an overall solid internal control process
in place. The District has since taken action and corrected the issues related to this finding.
The Grants and Claims Management Unit implemented additional controls over the year-end
close processes to ensure that all expenditures are accrued for year-end and included in the
SEFA. The District is now running a general ledger report quarterly for grants with semi-annual
reporting requirements to ensure expenditures are captured within the fiscal year regardless
of when construction activity has begun. In addition, the year-end checklist has been updated
to ensure that the year-end expenditure review is completed by the project management team
for each grant.
The Finance department will provide more training and frequent communication with the
project management team to ensure that all grant expenditures during the year are accounted
for. The department will also continue to proactively enforce the existing policies and
procedures requiring departments to complete expenditure reporting.