Finding Text
Internal Controls over Submission of Regulatory Reporting SIGNIFICANT DEFICIENCY Criteria: The Organization is required to have an internal control system in place to ensure that its Form 990 with the IRS and audit report with the Federal Audit Clearinghouse (FAC) are filed on a timely basis. Condition: During the audit, it was noted that Form 990 and FAC were not filed timely for FYE 5/31/2021. Effect: Late filing fines may be incurred and grant funding may be suspended until reports received. Cause: Audit engagements are not consistently planned and completed due to reasons undeterminable. Questioned Costs: Undeterminable Recommendations: Board should approve funding for audit engagements in a more timely matter as well as require the CEO and/or CFO to communicate the status of all external reporting requirements on a monthly basis regardless if there is a scheduled monthly Board meeting. Also, Board should become more involved in the planning of audit engagements