Finding Text
2022-004 Late Single Audit Submission (Compliance) New Finding This Year Condition: The School did not submit the single audit reporting package to the Federal Audit Clearinghouse within nine months following their fiscal year-end as required (deadline of March 31, 2023). Criteria: Section 200.512(a)(1) Report Submission of the Office of Management and Budget?s Uniform Guidance outlines the following requirement: ?The audit must be completed and the data collection form [?] must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report(s), or nine months after the end of the audit period.? Cause: The School was unable to provide necessary audit documentation (employment contracts) timely due to improper record retention. Effect: Non-compliance with the Office of Management and Budget?s Uniform Guidance. Potential reduction or delay in federal and state funding as well as the effects of being placed on high risk status by a federal and/or state agency. Recommendation: Management develop and implement policies regarding the retention of employment contracts. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. New Finding This Year Condition: The School was unable to locate 4 of 24 personnel files selected for testing. However, essential personnel file documents were eventually located and furnished to auditors. Criteria: Part 3 Chapter 2 Section 2 of the School?s Personnel Policies states, ?The Superintendent/CEO or his or her designee shall maintain personnel records for all employees.? Section 200.334 Retention Requirements for Records of the Office of Management and Budget?s Uniform Guidance states, ?Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.? Cause: Management of the School did not adhere to written policy regarding the storage of personnel files (record retention). Effect: The School is not in adherence with written policy and in danger of not being in compliance with the Office of Management and Budget?s Uniform Guidance. Essential personnel file documents were located and furnished to auditors. Without these payroll costs charged to federal programs would have been questioned. Recommendation: Recommend adhering to adopted policies regarding the retention of personnel files. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan.