Finding Text
Noncompliance with Laws and Regulations: Significant Deficiency. Criteria – Under 2 CFR 200.512, auditee must submit single audit data collection and reporting package to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after the receipt of auditor’s report or nine months after the end of audit period. Condition – Accounting records were not complete and not readily available to schedule the audit. The single audit reporting package was submitted nine months after the September 30, 2023, due date. Context – Management is responsible for reviewing accounting data for making necessary adjustments, and preparation of financial statements for timely audit engagement and submission to the Federal Audit Clearinghouse. Cause – Experienced turnover of key staff within the accounting department and management lack of understanding of the extent of Single Audit. Recommendation – We recommend that Isuroon obtain appropriate experienced accounting staff, implement systems and procedures to ensure timely completion of the Single Audit and the submission of the reporting package to the Federal Clearinghouse. View of Responsible Officials and Corrective Action Plan – Isuroon acknowledges the audit finding and has taken proactive steps to implement a comprehensive corrective plan. The ongoing recruitment of an experienced finance director, as outlined, marks a crucial milestone in strengthening leadership and oversight within the finance department. This individual will bring invaluable expertise to ensure that accounting processes adhere to regulatory mandates, including those stipulated in 2 CFR 200.512. Furthermore, the engagement of a certified accounting firm for monthly reviews of the books of accounts underscores Isuroon's proactive approach to enhancing financial controls. This external oversight not only complements the efforts of the finance director but also provides an additional layer of assurance regarding the accuracy and completeness of accounting records throughout the fiscal year. Moreover, the CEO's commitment to closely monitor the accounting department and collaborate closely with the finance team, under the guidance of the new finance director, underscores Isuroon's dedication to timely reporting. The CEO's direct involvement will foster ongoing communication and cooperation, ensuring that periodic reports are promptly disseminated to donors, auditors, the board of directors, and all other relevant stakeholders. By leveraging these resources and fostering a culture of accountability and transparency, Isuroon is well-positioned to address the root causes of the audit findings and establish robust mechanisms for the timely submission of audit reporting packages in the future.