Finding Text
2022-005 Timely Completion of Audit under Uniform Guidance and Submission to Federal Audit Clearinghouse (Noncompliance and Material Weakness in Internal Controls over Compliance – All Awards)
Criteria: Per 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.512 (a)(1), the auditee must complete and submit the single audit report within nine months of the organization’s year-end.
Condition and Context: Expenditures were not reconciled completely to accounting reports to be able to determine extent of testing necessary, several supporting schedules were not ready, and supporting documents were not readily available at the time of scheduled fieldwork for the audit. In addition, accountant shortage led to difficulties in rescheduling time for the audit to be completed.
Cause: Lack of staffing at the Organization as they were short an internal accounting position and not understanding the extent of a first ever Single Audit, as well as lack of available staff at external accounting firm to reschedule time.
Effect: The audit was completed and submitted more than one month after the deadline.
Questioned Costs – None
Recommendation: Management should seek appropriate staffing levels for the fiscal department to timely provide auditor requests, and consider additional training related to U.S. generally accepted accounting standards and the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions: Subsequent to year-end, an internal accounting staff member was hired. The staff member assisted with the finalization of the ERA program and is handling the internal accounting for the Organization. An additional accounting staff member will be hired to increase the accounting capacity. This will allow for a more timely audit response and completion.