Finding 950870 (2022-001)

2022-001 ALN: 17.258, 17.259, 17278 NON-COMPLIANCE WITH AUDITEE RESPONSIBILITIES RELATED TO REPORTING REQUIREMENTS UNDER UNIFORM GUIDANCE Criteria: Under the requirements of Uniform Guidance, it is the auditee’s responsibility to ensure the audit is properly performed and submitted when due. The audit shall be completed and the data collection form and reporting package submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The delay in finalization of the audit report was directly related to circumstances experienced by the audit firm. During this timeframe the audit firm lost two audit staff, one auditor with experience since 1986 retired and another left due to family matters. These personnel were key to the audit firm’s operations and thus far, the audit firm has been unsuccessful in replacing these staff members. Further, a co-owner of the audit firm had surgery and the recuperative time has taken longer than expected. The co-owner was recently hospitalized again for issues related to the surgery. The combination of these circumstances directly impacted the timing of the services provided by the audit firm. As a result, the audit submission did not meet the time constraints required by Uniform Guidance. Cause/Effect: SWB is out of compliance with the reporting deadline for the audit. Recommendation: SWB’s financial records were finalized, complete, closed, reconciled and available for audit in sufficient time to meet the audit submission requirements of Uniform Guidance. The late submission was due to no fault of SWB’s as they were prepared for the audit as they have been consistently over the years. Reply: See corrective action plan.