Finding Text
Finding 2022-001 Federal Grantor: Various Passed-through: Various Pass-through Grantor?s No: Various Compliance Requirement: Reporting Condition: The Town submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in June 2023, 3 months after it was due. Criteria: The Town was required to submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than March 31, 2023, 9 months after the fiscal year-end (2 Code of Federal Regulations ?200.512). Effect: Federal awarding agencies may deny future federal awards or subject the Town to additional cash monitoring requirements. This finding was not a result of internal control individual federal programs and, accordingly, did not have a direct and material effect on the reporting requirements over the Town?s major federal programs. Cause: The Town failed to prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner due to the number of federal awards tested in the current year compared to prior years. In addition, the Town lost its finance director during the financial and single audit process. Context: The Town has had significant loss of residents due to the Paradise fire and has found difficulty in replacing key personnel for its finance department. Recommendation: The Town should consider contracting with an external accounting firm so that it can close its books and submit its audited financial statements and single audit to the federal audit clearinghouse no later than the statutory reporting deadline. Management?s Response: Management?s response to the finding is discussed in the attached Corrective Action Plan.