Finding Text
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations