Finding Text
2023-001 Timely Submission of Single Audit Report
Program Name/Assistance Listing Number: 93.575 Child Care and Development Block Grant and 21.027 Coronavirus State and Local Fiscal Recovery Funds
Federal Agency: Department of Health and Human Services and Department of Treasury
Type of Finding: Material Weakness
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 fiscal year ended December 31, 2023, by the required deadline.
Cause of Condition: The Organization failed to appropriately monitor and assess its ability to submit the DCF within the deadline. As a consequence, the Organization missed the deadline for submission of the requried DCF.
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.
Recommendation: We recommend that the Organization implement stronger internal controls and procedures to ensure timely submissions of the DCF. This could include designing a responsible party for tracking and submitting the DCF, creating a timeline and checklist for required submissions, and conducting periodic reviews to ensure compliance with deadlines. Additionally, the Organization should provide training to relevant staff on the importance of meeting federal compliance requirements.
View of Responsible Official: Management agrees with the finding and will implement corrective action.