Finding Text
Reference Number 2022-004 (Repeat finding, prior year finding 2021-005) Criteria: In accordance with 2 U.S. Code of Federal Regulations (CFR) 200.512, the Organization is required to submit its single audit reporting package and data collection form to the Federal Audit Clearinghouse (FAC) no later than 30 days after the date of its audited financial statements or 9 months after the fiscal year end, whichever occurs earlier. Condition and Context: The organization did not issue its single audit reporting package until September 2023. Effect: Late filing is considered in noncompliance with timely submission of financial information to the Federal Audit Clearinghouse. Cause: As described in findings 2022-001 through 2022-003, the Organization suffered operational difficulties as a result of key employee turnover and internal control deficiencies. As a result, material adjustments to the financial statements and Schedule of Expenditures of Federal Awards (SEFA) were made. In order to support the adjustments and comply with Generally Accepted Government Auditing Standards significantly more time and documentation was required to be obtained. This significantly delayed the closing and delivery of the financial reporting package. Recommendation: The Organization should implement the recommendations in findings 2022-001 through 2022-003 to ensure that future reporting requirements are complied with in a timely manner. Management Response: See Corrective Action Plan.