Finding Text
Findings 2024-001: Timely Reporting - Significant Deficiency in Internal Control over Compliance; Federal Programs ALN: 93.575, 93.596, 93.558, 93.667; Criteria: Pursuant to the grant agreement (Award number EL114) and the Uniform Guidance, the Coalition is responsible for submitting the Single Audit Reports and the required federal Data Collection Forms (SF-SAC) electronically to the Federal Audit Clearinghouse no later than nine (9) months after the fiscal year's end of the audit period.; Condition: The Coalition failed to timely submit the Single Audit Reports and the required federal Data Collection forms (SF-SAC) to the Federal Audit Clearinghouse within the required reporting deadline.; Cause: The Coalition was impacted by a cyberbreach involving its third-party IT vendor, resulting in the permanent encryption of the accounting system. This incident caused delays in internal reporting due to the implementation of a new financial reporting system, which led to the late submission of the aforementioned reports.; Effect: The Coalition did not meet the submission deadline requirement as set forth by grant agreement and the Uniform Guidance.; Recommendation: The Coalition should establish and implement formal procedures to monitor and ensure timely submission of Single Audit Reports and SF-SAC Data Collection Forms in accordance with the Uniform Guidance and grant agreement requirements.