Finding Text
Finding Reference: 2023-004
Prior Year Finding: 2022-005
Federal Agency: Department of Health and Human Services
Compliance Requirement: Reporting
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters
Federal Program: Impacts All Federal Award Programs
Grant Award: Various
Condition/Context:
The single audit report was not submitted to the Office Management and Budget in accordance with the reporting requirement.
Criteria:
COSO/Internal Control Framework defines control activities as “policies and procedures that help ensures management’s directives are carried out” This would include preparation of the Schedule of Expenditures of Federal Awards and the related Data Collection Form in a timely manner.
Uniform Guidance 2 CFR 200.501 states that the audit shall be completed, and the data collection form shall be submitted within the earlier of 30 days after the receipt of the auditor’s report, or nine months after the end of the audit period. Accordingly, audits for fiscal years ending June 30, 2023 would be due on March 31, 2024.
Cause:
The single audit report was not submitted due to delays in year-end closing entries, schedules, and reconciliations.
Effect:
As a result of the finding, SMTCCAC did not provide required information to its federal oversight agency in a timely manner.
Questioned Costs:
None
Recommendation:
We believe that the year-end closing process could proceed in a timely manner by adhering to a closing schedule and maintaining timely account reconciliations. Progress should be monitored by management to determine that due dates are being met and required reports are submitted to regulatory agencies within the compliance time frame.