Finding Text
Type of Finding: Material Noncompliance
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with report submission for program-specific audit provisions. 2 CFR 200.507(c)(1) indicates that the audit must be completed and the required reporting 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, unless a different period is specified in a program-specific audit guide.
Condition: The Coalition did not submit the audit within the required timeframe.
Questioned costs: None.
Context: This is the first year The Coalition was required to have a single audit performed under Uniform Guidance.
Cause: The Coalition did not submit the annual financial report on time due to for single audit purposes due to various extraordinary factors. These included a super typhoon which hit the island early in the year, causing infrastructure and communications issues; big four firm auditors which were situated on the island left the market and could not perform the audit; and multiple other mid to small sized firms declining the job due to scheduling or capacity issues. Finally, they were able to find an auditor late in August, which delayed the submission even further.
Effect: The Coalition is not in compliance with the federal regulations.
Repeat Finding: No
Recommendation: We recommend the Coalition continuously monitor its expenditures of federal funds and begin the process of engaging an Auditor in a timely manner when the Coalition is aware that it will exceed the threshold triggering a single audit.
Views of Responsible Officials: Per management, they will make it a priority to be aware of all deadlines related to the submission of quarterly and annual reports for federal awards and submit these on time.