Finding Text
New Kensington Community Development Corporation (“NKCDC”) failed to submit the Single Audit reporting
package and data collection form to the Federal Audit Clearinghouse by the required due date - the earlier of 30
days after receipt of the auditor’s report(s), or nine months after the end of the period.
Condition and Context
The federal reporting deadline for the Single Audit reporting package was March 31, 2024; however, NKCDC did
not submit its Single Audit Reporting Package by that date.
Criteria
2 CFR 200.512 states, “The audit must be completed and the data collection form, if applicable….. must be
submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period”.
Cause
As a result of the COVID-19 pandemic, financial constraints, and corresponding staffing challenges, the accounting and finance team at NKCDC was unable to complete the required audits on a timely basis. At the same time, the accounting and finance team was faced with other administrative and operational matters requiring immediate attention to help ensure NKCDC remained operational. The financial and staffing constraints resulted in the late submissions of the Single Audit reporting package.
Effect or Potential Effect
Lateness in reporting could result in a lack of up-to-date information provided to federal agencies and potential
impacts on grant funding.
Recommendation
We recommend that management implements processes and procedures to identify the required deadlines and
related controls to ensure compliance with the deadlines.
Views of Responsible Officials
Management agrees with the finding above. Management will review the existing accounting policies and
procedures and implement additional controls to validate timely submission of reports.