Finding Text
Finding 2022-001: Late Filing of Audit Report Condition Under Uniform Guidance, Operation Fresh Start, Inc.?s audited financial statements for the year ended September 30, 2022 were due to the federal single audit clearinghouse by June 30, 2023. Operation Fresh Start, Inc.?s September 30, 2022 audited financial statements were not completed for submission to the federal audit clearinghouse until after June 30, 2023. Criteria Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for ?effective control over, and accountability for, all funds, property, and other assets.? In addition, Uniform Guidance requires audited financial statements to be submitted to the federal audit clearinghouse within nine-months after an entity?s year-end. Cause There was turnover twice in the Finance Manager position between September 30, 2022 and the audit due date. This turnover caused a delay in reconciling accounts, providing audit documentation and preparing the consolidated financial statements, which include the Schedule of Expenditures of Federal and State Awards. Effect A material weakness in internal control over financial reporting exists due to failure to completely reconcile and adjust accounts and provide financial statements in a timely manner in order to meet audit submission deadlines. Recommendation We recommend Operation Fresh Start, Inc. implement procedures to ensure timely completion of the annual audit. View of Responsible Officials Management agrees with the finding and has developed and begun implementation of a corrective action plan.