Finding 398629 (2023-002)

2023-002 REPORTING - SIGNIFICANT DEFICIENCY Federal Program Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects ALN 84.215 Criteria Per the Uniform Guidance 2 CFR 200.512, an 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(s), or nine months after the end of the audit period. Condition/Cause The Organization did not submit their data collection form and reporting package to the Federal Audit Clearinghouse by March 31, 2024. Effect The Organization’s audit was not complete until May 2024 due significant turnover in the Organization’s finance department resulting in accounts not being reconciled timely. Questioned Costs Less than $25,000. Context The Organization’s fiscal year end is June 30, 2023, therefore making their filing deadline to submit their audit to the Federal Audit Clearinghouse the earlier of 30 calendar dates after receipt of the auditor’s report or March 31, 2024. Due to significant turnover with the Organization’s finance department resulting in accounts not being reconciled timely, the Organization’s audit was not completed until May 2024 resulting in a late filing to the Federal Audit Clearinghouse. Repeat Finding No. Recommendation We recommend that the Organization review its processes and procedures to ensure timely closing of the annual financial records, allowing for a timely audit and the timely submission of the data collection form and reporting package to the Federal Audit Clearinghouse. Management Response The Organization agrees and will implement the recommendation.