Finding Text
2023-001: Filing of Single Audit Report
Federal Departments: Department of Housing and Urban Development
Assistance Listing #: All programs
Internal Controls Material Weakness & Compliance
Category of Finding – Reporting
Criteria – Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period.
Condition – The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2022 within nine months after the end of the audit period (June 30, 2023).
Cause – The Corporation faced turnover in staffing within the accounting department during the year and a key employee had a prolonged illness which caused the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2023 deadline.
Effect – Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit.
Recommendation – We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package.
Auditee’s comments and response – The Corporation continues to work on educating their new team on completing efficient and timely financial close procedures. Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances.
Responsible party for corrective action: Kris Meyer, Director of Operations
Repeat finding: Yes, 2022-003