Finding 529247 (2023-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-03-21

AI Summary

  • Core Issue: The Authority missed the deadline for submitting its audit report, violating federal compliance requirements.
  • Impacted Requirements: This affects compliance with 2 CFR Part 200.303(a) and Section 200.512 of the Uniform Guidance regarding timely reporting.
  • Recommended Follow-Up: The Authority should ensure future audits are completed and reports submitted on time to avoid repeat findings.

Finding Text

Criteria: 2 CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Section 200.512 of the Uniform Guidance states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor’sreport or nine months after the end of the audit period (whichever is earlier). Condition and Context: The Authority did not complete its audit report prior to the required deadline. Cause and Effect: Due to a delay in the compiling of records related to the audit, the Authority was not in compliance with the reporting requirements. Questioned costs: None Repeat finding: Yes Recommendation: We recommend that the Authority complete its audits and submit the required reports by the deadline. Views of responsible officials of the auditee: Management agrees with the finding and the auditors’ recommendation. See Management’s full response in the Corrective Action Plan at the end of this report.

Corrective Action Plan

The Authority strives always to meet all regulatory deadlines. This particular deadline for the Single Audit was complicated by the unprecedented nature of the COVID-19 pandemic (which, for many organizations such as ours, triggered a Single Audit requirement for the first time, and overwhelmed the audit profession with a surge of new Single Audits to conduct that did not exist previously). In the Authority’s case, the situation was further complicated by the fact that we were changing external audit firms moving into the prior reporting period (Fiscal 2022). By the time the incumbent audit firm had issued its Single Audit report for Fiscal 2021, and the successor audit firm could therefore begin the Fiscal 2022 and Fiscal 2023 Single Audits, it was already beyond the reporting deadline of March 31, 2023 for Fiscal 2022. By the time the Single Audit was issued by the successor audit firm for Fiscal 2022, the March 31, 2024 reporting deadline for the Fiscal 2023 Single Audit (this reporting period) had also lapsed. We are hoping to be able to work successfully with the successor audit firm in order to file our Single Audit for Fiscal 2024 timely on or before March 31, 2025 and also have timely filings thereafter.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 529248 2023-001
    Significant Deficiency Repeat
  • 529249 2023-001
    Significant Deficiency Repeat
  • 529250 2023-001
    Significant Deficiency Repeat
  • 529251 2023-001
    Significant Deficiency Repeat
  • 529252 2023-001
    Significant Deficiency Repeat
  • 529253 2023-001
    Significant Deficiency Repeat
  • 529254 2023-001
    Significant Deficiency Repeat
  • 529255 2023-001
    Significant Deficiency Repeat
  • 529256 2023-001
    Significant Deficiency Repeat
  • 1105689 2023-001
    Significant Deficiency Repeat
  • 1105690 2023-001
    Significant Deficiency Repeat
  • 1105691 2023-001
    Significant Deficiency Repeat
  • 1105692 2023-001
    Significant Deficiency Repeat
  • 1105693 2023-001
    Significant Deficiency Repeat
  • 1105694 2023-001
    Significant Deficiency Repeat
  • 1105695 2023-001
    Significant Deficiency Repeat
  • 1105696 2023-001
    Significant Deficiency Repeat
  • 1105697 2023-001
    Significant Deficiency Repeat
  • 1105698 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $24.97M
93.155 Rural Health Research Centers $177,621
32.006 Covid-19 Telehealth Program $106,851
93.301 Small Rural Hospital Improvement Grant Program $23,893
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $17,090
93.241 State Rural Hospital Flexibility Program $13,492
93.889 National Bioterrorism Hospital Preparedness Program $4,560