Finding Text
Criteria: Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200.507(c)(1) states the audit 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: The City was subject to a single audit as more than $750,000 of federal funds were expended during the fiscal year. The single audit was not completed and submitted to the federal clearinghouse or other relevant granting agencies within the required timing.
Cause: Due to the delay in the City’s audit, the single audit was not submitted timely.
Effect: The City may put their federal funding status at risk due to the delays in reporting.
Recommendation: We recommend the City implement internal controls to perform a timely closing of the audit, which would include the preparation of the schedule of expenditures of federal awards. This would allow for the timely submission of required reports to the federal government.
Management’s Response: See attached corrective action plan.