Finding Text
Finding 2022-001: Late Filing of Audit Report
Condition
Under Uniform Guidance, Hocking.Athens.Perry Community Action, Inc.'s audited financial statements for the year ended December 31, 2022 were due to the federal single audit clearinghouse by September 30, 2023. Hocking.Athens.Perry Community Action, Inc.'s December 31, 2022 audited financial statements were not completed for submission to the federal audit clearinghouse until after September 30, 2023.
Criteria
Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “effective control over, and accountability for, all funds, property, and other assets.” In addition, Uniform Guidance requires audited financial statements to be submitted to the federal audit clearinghouse within nine-months after an entity’s year-end.
Cause
Fiscal staff were out on medical leave between December 31, 2022 and the audit due date. This caused a delay in reconciling accounts, providing audit documentation and preparing the consolidated financial statements, which include the Schedule of Expenditures of Federal Awards.
Effect
A significant deficiency in internal control over financial reporting exists due to failure to completely reconcile and adjust accounts and provide financial statements in a timely manner in order to meet audit submission deadlines.
Recommendation
We recommend Hocking.Athens.Perry Community Action, Inc.'s implement procedures to ensure timely completion of the annual audit.
View of Responsible Officials
Management agrees with the finding and has developed and begun implementation of a corrective action plan.
Section III - Federal and State Award Findings and Questioned Costs
Grant Funding Source Award Number
Department of Agriculture – AL#10.565, 10.568 & 10.569
Department of Treasury – AL#21.023 & 21.026
Department of Health and Human Services – AL#93.558 & 93.569
Audit finding 2022-001 represents a significant deficiency in internal control over compliance for Hocking.Athens.Perry Community Action, Inc.'s major federal programs.
Questioned Costs: None