Finding Text
Federal Agency: U.S. Department of Health and Human Services (HHS)
Pass-through Agency: N/A
Federal Program Title: All Federal Programs
CFDA Number: N/A
Compliance Requirement: Reporting
Type of Finding: Material Noncompliance Reporting and Material Weakness
Responsible Official: Finance Director
Criteria
2 CFR part 75.512, the Uniform Guidance established the audit must be completed
nine months after the end of audit period and the Single Audit Reporting package
and Data Collection Form (SF-SAC) Federal Audit Clearing House, must be
submitted within the earlier 30 calendar days after receipt of the auditor’s report, or
nine months after the end audit period, whichever comes first.
Condition
Preliminary Financial reports and programs financial information were available on
August 22, 2023 to prepare the Single Audit Reporting Package.
Questioned cost
Not determined.
Cause
Control procedures were not established to provide on time finance information to
prepare the Single Audit reporting package.
Effect
The Municipality did not comply with the submission date required for the Data
Collection Form and Reporting Package, this could affect the continuance and new
approvals of federal funds. In addition, for the next two (2) fiscal years the
Municipality cannot be considered by the auditor as a low-risk auditee.
Recommendation:
To prepare a calendar responsibility of Federal funds due dates financial statements
to be prepared on time. Adequate training must be provided to finance personnel.
The governing body must create an Audit and Finance Committee to revise monthly
financial statements.
Management response:
Agreed with the Finding: We are actively seeking a company to provide guidance
and assistance in report issuance, aiming to streamline and address these processes
effectively.