Finding Text
Information on the Federal Programs: Assistance Listing Number 93.600 - Head Start, U.S. Department
of Health and Human Services and Assistance Listing Number 96.008 - Work Incentives Planning and
Assistance Program, Social Security Administration
Compliance Requirements: Reporting
Type of Finding: Noncompliance
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance or 2 CFR Part 200), Subpart F , requires
Single Audit reporting to be submitted to the Federal Audit Clearinghouse within 30 days of receiving the
completed reports or nine months after the entity's fiscal year end, whichever comes first.
The June 30, 2024 single audit reports were not submitted to the Federal Audit Clearinghouse on a timely
basis.
The Organization was in consultation with a creditor regarding issues that would have a significant impact
on the accounting and disclosures in the audited financial statements. The issue was resolved
subsequent to the report submission deadline. Subsequently, the independent audit firm required
additional time to complete engagement documentation to issue the audit reporting package.
Failure to submit the necessary audit reports on a timely basis may lead to delayed or suspended funding
and Organization will not be classified as a low-risk auditee in future years.
The Organization was not in compliance with covenants pertaining to financial ratios in its bond
agreements, which constitute a substantial amount of debt. The Organization contacted the bond agent
regarding issuance of a waiver on the covenant compliance. The bond agent did not make a
determination on issuance of the covenant waiver until the deadline on submitting the financial reporting
package to the Federal Audit Clearinghouse had expired. After the waiver was received, the independent
auditor required time to complete the audit documentation to be able to release the financial statements
and Single Audit reports.
We recommend that the Organization place a greater emphasis on identifying issues that may result in
delays to facilitate timely resolution of situations with parties outside the Organization's control.
The Organization concurs with the finding and will take corrective actions to ensure that the financial
reporting package is submitted to the Federal Audit Clearinghouse within the prescribed deadlines. The
Organization has a history of timely filings.