Finding Text
Finding 2022-001: Single Audit Submission to the Federal Audit Clearinghouse
Program:
14.228 – Community Development Block Grants
97.067 – Homeland Security Grant
Criteria:
Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organi-zations, §.320, requires APCD to submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after fiscal year-end, unless the federal oversight agency approves an extension of this deadline.
Condition:
The federal reporting deadline for the City of Rockport’s Single Audit Reporting Package was June 30, 2023; however, the City of Rockport did not issue its Single Audit Reporting Package until March 2024.
Cause:
The single audit was not completed by June 30, 2023, because the Annual Financial Report was not ready until March 2024. Due to the unforeseen turnover of critical finance department staff, the City experienced delays in completing the audit and issuing the Annual Financial Report.
Effect:
The late submission affects the federal programs. This finding is a significant deficiency in internal control over compli-ance and noncompliance with the Uniform Guidance.
Recommendation:
The City should improve its financial reporting process so that it can submit its Single Audit Reporting Package to the federal clearinghouse no later than 9 months after the fiscal year-end.