Finding Text
Section III – Findings and Questioned Costs for Federal Awards
Finding 2020-001 – Delinquent Filing
Condition
The accounting records for the 2020 audit were not able to be reconciled in a timely manner to complete the 2020 financial statement audit.
Criteria
Section 2 CFR 200.512 (a) (1) of the Uniform Guidance states that the audit must be completed and the data collection form and reporting package 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.
Cause and Effect
The passing of the Corporation’s CFO happened before the accounting records were reconciled and ready for the financial statement audit. The CFO performed the majority of the reconciliations and once the CFO passed away, no one within the Corporation was able to perform the year end reconciliations. This resulted in the financial statement audit not being able to be performed in a timely manner within the statutory required filing date.
Recommendation
We recommend that the Corporation document the annual financial statement close process so this process could be performed by anyone inside the Corporation with the proper skills, knowledge and understanding and spread the responsibilities over monthly reconciliations to multiple individuals within the Corporation.
Views of Responsible Officials and Planned Corrective Actions
The Corporation has begun putting in policies and procedures to ensure the monthly financial statement close process is completed in a timely manner. See separate report for planned corrective action.