Finding 405972 (2023-002)

Single Audit Report Submission – Significant Deficiency in Internal Control Over Compliance and Noncompliance Federal program information: Funding agency: All Title: All Assistance Listing Number: All Award year and number: All Criteria: The Uniform Guidance 2 CFR 200.512(a) requires the audit package and data collection form be submitted 30 days after receipt of the auditor’s report or 9 months after the end of the fiscal year, whichever comes first. Condition/Context: The Phoenix Indian Center’s fiscal year 2023 single audit reporting package was not submitted within nine months after the end of the audit period. Questioned Costs: None. Cause and Effect: The Phoenix Indian Center experienced significant turnover in key positions that generally ensure accounting records and financial statements were reconciled timely and the audit was performed to meet the compliance requirements. As a result, the single audit reporting package was submitted after the required reporting time period. Auditors’ Recommendations: To ensure compliance with the Uniform Guidance, the Department should prepare accurate, complete and timely financial statements and ensure an audit is performed to ensure the timely submission of the Single Audit reporting package. Management’s Response: Books of records were not maintained as required. Upon becoming aware of the deficiencies, management hired an outside firm to provide support for bringing records up to date.