Finding Text
Failure to inform auditors of the need for a single audit.
Federal programs impacted: All ALNs, see SEFA. (General)
Questioned Costs: None, NA
Condition: The Clinic expended more than $750,000 in federal awards, triggering a single audit requirement and did not bring this to the auditors attention during the audit. The Clininc failed to properly maintain appropriate records to determine the need for a single audit as required by Uniform Guidance.
Criteria: 2 CFR section 200.508(b)&(d) states that one responsibility of the auditee is to prepare appropriate financial statements, including the SEFA in accordance with 200.510. Part (d) states they must provide auditor with information as needed to perform the audit required. See also section 99.300(a).
Cause: The Clinic did not have proper controls in place to determine the need for a single audit as required by the Uniform
Guidance.
Effect: Engagement letter and fees had to be reevaluated, and the nature, timing, and extent of the audit were impacted by the additional requirement.
Recommendation: We recommend that the Clinic develops and implements policies and procedures to properly prepare the SEFA.
Management Response: Management stated they will do a better job of tracking federal expenditures for the next audit year as they do not want to trigger a single audit again knowingly or otherwise and do not want any delays in the audit like this year.