Finding Text
A. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Significant Deficiency:Finding #2022-001 – Current financial statements and footnotes were not completed in a timely manner. The financial statements and footnotes were not completed until July, 2023. The Data Collection Report and Federal Reporting package were not filed by the July 31, 2023 due date. Criteria:Uniform Guidance requirements for Federal programs require the submission of the Federal Reporting package including an audit report to the Federal Audit Clearinghouse (FAC) within nine months of the entity’s fiscal year end. The reporting package was due on July 31, 2023.Condition:Current and adjusted financial information was not completed until July, 2023.Effect:To be effective, an accounting system should be continuously updated for all balances and transactions in a timely manner to ensure compliance with Federal Grant Requirements. The fiduciary responsibility of those charged with governance cannot be upheld without current financial information with which to make critical managerial decisions. Cause:Financial reports and footnotes were not completed in a timely manner. Management transitioned from an outside firm preparing financial statements to the preparation of statements and related footnotes by staff members.Recommendation:We recommend that internal control policies and procedures be implemented that require the timely completion of accounting and financial reporting.