Finding Text
Condition/Context:
The single audit report was not submitted to the Office of Management and Budget in accordance with the reporting requirement.
Criteria:
COSO/Internal Control Framework defines control activities as “policies and procedures that help ensure 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 9 months after the end of the audit period. The due date was extended six months as a result of the challenges related to the coronavirus pandemic.
Cause:
The single audit report was not submitted due to delays in the year-end closing process, resulting in the audit being delayed.
Effect:
Questioned Costs:
None
Recommendation:
We believe the year-end closing and audit preparation processes should be completed sooner after year end. Progress should be monitored by management to ensure that established due
dates are being met and required reports are submitted to regulatory agencies within the compliance time frame.
As a result of the finding, the organization did not provide required information to its federal oversight agency in a timely manner.