Finding 585425 (2022-003)

2022-003 Reporting – Late submission of the Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse (FAC) ALN Number Name of Federal Program 10.760 Water and Waste Disposal Systems Identification as a Repeat Finding: Repeat Finding of 2021-003. Finding: The Association did not file its annual 2022 Single Audit and Data Collection form timely. Criteria: The Single Audit Reporting Package and Data Collection Form shall be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditor’s report, or 9 months after the end of the fiscal year, whichever comes first. Condition and context: Submission of the Single Audit Reporting Package and Data Collection Form to the FAC was not completed within the timeframe required by the Uniform Guidance. During the audit we noted that the Single Audit Reporting Package and Data Collection Form is expected to be submitted to the FAC during November 2023 for the fiscal year ended December 31, 2022. Cause: A member petition was received by the Board Secretary on June 5, 2023 calling for a vote on the removal of four specified board trustees. The receipt of the petition required that a special election be held July 11, 2023. The time and effort required by the Association’s small staff to respond to and facilitate a special election drew management’s time away from preparing for scheduled audit fieldwork. The delay in submitting the Single Audit Reporting Package is correlated to a one-month delay in the start of audit fieldwork. Sample size and population: Sampling was not applicable to this finding. Effect: Noncompliance with the Uniform Guidance could reduce access to future funding from Federal sources. Recommendation: Due to the unprecedented nature of the cause, it would be unusual for a similar matter to reoccur; however, it considered a best practice to maintain a schedule of regulatory and compliance deadlines to ensure related tasks are completed in advance of deadlines. Question Costs: None Management Response and Corrective Action Plan: See Corrective Action Plan Contact Person: Kristina Parker, Director of Finance and Operations