Finding Text
2023-007 Timely Submission of Single Audit Report
Program Name: State Opioid Response
Federal Assistance Listing No.: 93.788
Federal Agency: Department of Health and Human Services
Federal Award Identification: Unknown
Pass-Through Entity Number: Unknown
Applicable Pass-Through Entity: Ohio Department of Mental Health and Addiction Services and Cuyahoga County, Ohio
Type of Finding: Significant Deficiency
Compliance Requirement: Reporting
Criteria: According to the OMB Compliance Supplement, Part 6 and 2 CFR 200.512 (a)(1), non-federal entities that expend $750,000 or more in federal awards during a fiscal year are required to submit a complete and accurate Data Collection Form (DCF) and a Single Audit report package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. The DCF is a critical element in ensuring transparency and accountability for the use of federal funds.
Condition: The Organization did not submit the required DCF for the period September 30, 2023, by the required deadline.
Cause of Condition: The delay in submission was attributed to a change in the fiscal year and a postponement of the 2022 audit.
Effect: Failure to submit the DCF on time resulted in noncompliance with federal regulations, which could lead to the potential withholding of future federal funding or other sanctions. It also undermines the Organization's compliance status and may affect the entity's standing with grantor agencies and other stakeholders.
Questioned Cost: Not Quantifiable
Context: Last year was the initial audit, leading to subsequent delays that impacted the 2023 audit timeline. Additionally, the change in the fiscal year, where the expected fiscal year-end was initially December but was shifted to September 30, resulted in an earlier deadline for the current year, moving it to June.
Recommendation: We recommend that the Organization enhance audit planning and scheduling to account for changes in the fiscal year and prior delays, ensuring timely submission of the DCF. Strengthening internal controls, including assigning responsibility for monitoring deadlines, can help avoid future noncompliance. Additionally, improved coordination with external auditors and contingency planning for unforeseen delays will further support timely submissions and maintain the Organization’s compliance with federal regulations.
Views of Responsible Officials: To eliminate this finding from recurring in future periods, POF will create an internal Annual Audit Plan (AAP), identifying required tasks, deliverables, due dates, and responsible internal and external personnel for each task. POF's AAP will include five-six (5-6) months' lead time prior to future mandatory submission dates. Simultaneously, POF will communicate the AAP timelines with the Audit Engagement Partner to ensure audit staffing continuity and availability. POF will achieve accurate, complete, and timely future SAR and DCF submissions through incorporating these process improvements along with strengthening its Internal controls, gaining experience in its first two Single Audits, and in acquiring an understanding of the Auditor's role in verifying compliance and the adequacy of related supporting documentation.