Finding Text
Significant deficiency - Timely Submission of Single Audit Data Collection Form
U.S. Department of Health and Human Services CFDA #93.566
U.S. Department of Labor CFDA #17.258 / 17.259 / 17.278
Criteria: Uniform Guidance requires Organizations that expend $750,000 and greater of federal funds to conduct a single audit and submit the data collection form to the Federal Audit Clearinghouse the earlier of 30 days after receiving the single report or nine months after the end of the fiscal year.
Condition: The Organization has experienced significant delays in the preparation and issuance of the June 30, 2022, financial statements and its Single Audit required under the Uniform Guidance.
Cause: Due to turnover and vacancy in the accounting department positions from July 2021 through May 2022, the Organization’s audit was delayed and the annual single audit report for fiscal year June 30, 2022, was not submitted within the required timeframe.
Effect: The failure to submit single audits within the time frame prescribed by Uniform Guidance causes FCCP to be considered a high-risk auditee. In addition, the Organization is required to adhere to strict reporting deadlines set by regulatory bodies, including Federal grantors. Failure to meet these deadlines can result in compliance issues and penalties, and ultimately jeopardize the renewal of funding.
Questioned costs: None
Repeat Finding: Yes
Recommendation: Employ the necessary accounting personnel in order to have the resources to ensure the audit is completed within nine months of year end.
Response: The Organization agrees with the finding. Now that the Organization has filled the accounting director position the delinquent audits are being completed as efficiently as possible.