Finding Text
2023-004 – Late Audit Report
Federal program information:
Funding agency: All
Title: All
Assistance listing number: All
Award year: Various
Criteria: According to 2 CFR Part 200.512, the annual single 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 or nine months after the end of the audit period (March 31, 2024).
Condition: SFRC’s fiscal year 2023 single audit reporting package was not submitted by the due date of March 31, 2024.
Context: N/A
Questioned Costs: None
Cause: SFRC was significantly impacted by turnover in the accounting department during and after fiscal year 2023, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards.
Effect: SFRC was unable to completely reconcile certain general ledger accounts timely, which resulted in significant audit adjustments. As a result, the audit started late and was not issued within the reporting deadline.
Auditor’s Recommendation: SFRC should implement the provisions from its Accounting & Financial Management Policies and Procedures Manual so that monthly and annual account reconciliations are performed timely to ensure that the data collection form and reporting package are submitted by the due date.
Management’s Response: Management implemented correction of this finding in early 2024, after stabilizing the staffing of the accounting department. Beginning with the March 2024 close, each month has been closed timely with reconciliation of all key accounts.