Finding Text
Finding 2021-002 Single Audit Report Submission – Reporting
Assistance Listing No. 93.243 Substance Abuse and Mental Health Services Administration
Criteria: Pursuant to the Uniform Guidance, organizations expending federal financial assistance in excess of $750,000 in a fiscal year are required to submit the data collection form and reporting package by the earlier of either 30 days after receipt of the auditor’s report, or nine months after the end of the fiscal year end date.
Condition: The completion of the Organization’s Single Audit was delayed due to several factors including change in auditors and accountants, COVID-19 and remote work by employees. Hence, the Single Audit reporting deadline was not met.
Cause: The Organization’s previous auditor is no longer providing Single Audit services and so the Organization had to search for and engage a new CPA firm to conduct the financial statements audit and Single Audit. The search for a new auditor took approximately 3-4 months due to the shortage of staff resulting from the COVID-19 pandemic.
Effect: The Organization failed to submit the Single Audit reporting package for the year ended December 31, 2021 on time.
Questioned costs: None.
Recommendation: Changing service providers do result in disruptions and delays but the Organization’s management should try its best to minimize the negative effect of changing auditors and still aim to complete the Single Audit in a timely manner and meet the reporting deadline.
Views of Responsible Officials and Planned Corrective Actions: The President hired a new CPA firm in 2023. In addition, an accounting consultant and accounting staff was hired to help and assist during the audit.