Finding Text
INTERNAL CONTROL OVER COMPLIANCE AND COMPLIANCE
Audit Finding Reference Number
2020 – 001 – Late Submission of Audit Report
Federal Program and Specific Federal Award Identification
CFDA Title and Number
93.224 Head Start Program Cluster:
Health Center Program (Community Health Centers,
Migrant Health Centers, Health Care for the Homeless,
and Public Housing Primary Care)
93.527 Affordable Care Act (ACA)
Grants for new and expanded services under the Health
Care Program
Federal Award Year
December 31, 2020
Federal Agency
U.S. Department of Health and
Human Services
Pass-Through Entity
Not Applicable
Criteria
Pursuant to the requirement of Uniform Guidance 2 CFR Part 200.512(a), Single audits are required to be completed and the data collection form and reporting package submitted within the earlier of thirty (30) days after receipt of the auditor’s report, or nine (9) months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal Holiday, the reporting package is due the next business day.
Conditions and Contexts
The December 31, 2020 audit report was not submitted within the prescribed time frame required by federal regulations. The audit report was outstanding beyond the nine (9) months after the entity’s fiscal year pursuant to the federal requirements.
Cause
Management failed to ensure the audit report was issued within the prescribed time frame.
Questioned Costs
For purposes of this condition, I have no questioned cost.
Effect
Excelth, Inc. has not complied with the audit requirement of Uniform Guidance 2 CFR Part 200.512(a).
Repeat Finding
No.
Recommendation
I recommend that the management of Excelth, Inc. take steps to ensure that the Single Audit is submitted within the prescribed deadlines.
Management Response
The EXCELth Finance Department was delayed in providing timely financial information to your audit firm and provide the financial statements by the filing deadline due to the COVID pandemic and subsequent problems this caused in difficulties hiring and maintaining qualified individuals in the department.
To prevent recurrence of the late filing of financial statements, we have contracted with a temporary staffing agency, Robert Half, for additional qualified accountants to provide the following services: to assist with preparing timely monthly financial information for presentation to the governing board; timely reconciliation of all bank statements to the general ledger each month; timely reconciliation of receivable and payables subsidiary ledgers to the general ledger each month; preparation any necessary adjusting entries for posting; attend the monthly board meeting when financial information is presented; and provide the necessary assistance to prepare audit financial statements on a timely basis.