Finding Text
Finding: 2023-002
CFDA Number: 14.218
Program Name: Community Development Block Grants
Federal Agency: U.S. Department of Housing and Urban Development
Type of Finding: Federal Award Finding
Compliance Requirement: Reporting
Questioned Costs: N/A
Criteria
Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the
Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or
nine months after the end of the audit period.
Condition
The Company's 2022 financial audit was submitted to the Federal Audit Clearinghouse more than nine
months after the end of the audit period.
Cause
The late submission of the Organization's financial audit to the Federal Audit Clearinghouse was primarily
due to delays in management's preparation of the financial records. The accounting records were not
finalized in a timely manner, which prevented the audit team from initiating audit procedures with
sufficient time to meet the required submission deadline.
Effect:
The Company is out of compliance with the reporting requirements detailed in the Uniform Guidance.
Recommendations:
We recommend that policies and procedures be implemented to ensure the financial audit is submitted to
the Federal Audit Clearinghouse within the required timeframe.
Management's Response
Management is aware of the submission timeframe required by the Federal Audit Clearinghouse and will
ensure audited financials are submitted timely going forward.