Finding Text
Criteria:
Audit reports for entities that have expended over $750,000 in federal awards and are subject to Uniform Guidance are required by MT statute (MCA 20-7-501) and federal law (2 CFR 200.512 (a)) to be filed with the respective agencies within nine months of the entity’s fiscal year end. Internal control procedures should be designed and operational to meet these filing deadlines.
Condition:
The fiscal year ended June 30, 2022 audit report, including reporting required under Uniform Guidance, was not filed with the appropriate agencies by the Montana statutory and Uniform Guidance filing due dates of within nine months after the fiscal year end of June 30, 2022 (March 31, 2023).
Context:
The Florence-Carlton School District No. 15-6 had historically timely filed its audits to the respective agencies as required by law.
Effect:
Florence-Carlton K-12 School District No. 15-16 filed the audit report and data collection form to the state and federal agencies after the required due date of March 31, 2023 and is not in compliance with state and federal filing requirements. .
Cause:
The Florence-Carlton School District No. 15-6 had multiple changes in key financial management positions in a short period of time. Additional time was required by the entity to produce complete and auditable financial information and schedules, including the Schedule of Federal Awards, for the year ended June 30, 2022.
Recommendation:
Internal control procedures should be designed and put into place to ensure that financial reporting be completed in a timely manner. These procedures could include additional training and assistance from third party sources.
Views of Responsible Officials and Planned Corrective Action:
See Management’s Responses on page 98.
Repeat Finding:
No