Finding Text
Finding Reference 2021-05
Federal Agency: US Department of Housing and Urban Development
US Department of Health and Human Services
Federal Program: All Federal Programs
Compliance Requirement: Reporting
Type of Finding: Material Weakness (MW) and Instance of Noncompliance (NC)
This finding is similar to prior year Finding 2020-05.
Condition
The Data Collection Form and the Reporting Package for the year ended June 30 2021 was not timely submitted to the federal government. The Data Collection Form and the Reporting Package must be submitted by the auditee within the earlier of 30-day after the receipt of the auditors’ reports or nine (9) months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. No extension from the cognizant or oversight agency was noted.
Criteria
The Uniform Guidance 2 CFR Section 200.512(a) requires the audit to be completed and the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (“FAC”) nine months after the end of the audit period.
Effect
The Organization is not complying with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants awarding process.
Cause
The Organization has not been able to provide the necessary information for the preparation of the single audit report on a timely basis in order to complete its reporting requirement for the fiscal year ended on June 30, 2021. In addition, the lack of procedures for the analysis, recording and reconciliation of accounting records on a monthly basis, has resulted in delays in the process of auditing the Organization’s financial statements.
Questioned Costs
None
Recommendation
The Organization should adopt policies and procedures to ensure that the annual audit is performed and submitted in a timely manner.
View of Responsible Officials and Planned Corrective Actions
The Organization agrees with the finding and recommendation will be implemented.