Finding Text
2024-03 Material Weakness in Internal Control over Financial Reporting – Late Reporting
Criteria: Under the Uniform Guidance, all recipients that expend $750,000 or more of federal funds must submit a Data Collection Form and audited financial statements to the Federal Audit Clearinghouse no later than 9 ½ months after their yearend date or 30 days after the receipt of the auditor’s report, whichever is earlier.
Condition: During the audit, there were several delays in obtaining the requested documentation necessary to complete the audit procedures.
Cause: Town employees did not allot sufficient time in their schedule to respond to auditors’ requests for information.
Effect: The required audit reports were not submitted in the time allowed which could affect future federal funding.
Context: The audit fieldwork was completed in late October and a list of outstanding documents was provided to the Town. The Town treasurer position is currently a part-time position. In November there was a primary election at the national level which required an unusual amount of time from Town employees, followed by FY 2025 budget preparation for the Town annual meeting and local elections in March of 2025. The outstanding audit documents were received in late April and May.
Recommendation: Management should allocate sufficient time to be spent by the Town treasurer to allow for the timely completion of the audit in order to meet the reporting requirements in accordance with the Uniform Guidance.Views of Responsible
Officials and Planned
Corrective Actions: Town management and treasurer understand the importance of timely submission of the audit report and data collection form and will place the highest priority on the audit process going forward.