Finding Text
Criteria
2 CFR Section 200.512(a) requires the reporting package and DCF to be submitted to the Federal Audit Cleminghouse the earlier of thirty calendar days after the reports are received from the auditor or nine months after the end of the audit period.
Condition
Due to the delay in financial close of the City's books and records, a federal single audit for fiscal year 2024 was not performed in a timely manner and the DCF was not submitted by its due date of June 30, 2025. The UG requires the reporting package and DCF to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditor or nine months after the City's year end.
Cause
Due to significant turnover in the City's finance department, there was a lack of timely reviews of account reconciliations and schedules for year-end closing procedures which ultimately delayed the completion of the audit.
Effect
The City is not in compliance with 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Recommendation
Management should implement policies to ensure timely financial reporting and ensure the timely completion of an audit.