Finding 971 (2022-001)

2022 – 001: Timely Financial Reporting and SF-SAC Submission Criteria – Filing of the SF-SAC Submission timely represents a functioning financial system. Condition and Context – Complete financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC and material misstatements were made during the audit that management has accepted and corrected. The misstatements include recording of contributions and grants in the proper accounting periods. Effect – Complete and accurate financial results were not available on a timely basis to begin the audit prior to the due date of the SF-SAC. Recommendation – Procedures need to be developed for the following:  Management should implement procedures to complete and reconcile all financial information within a reasonable time after year end.  Management should implement a system to track the due date of the SF-SAC to ensure timely filing. Corrective Action Planed - Baltimore Civic Fund & Goldin Group acknowledge the finding on the Civic Fund’s single audit. This finding arose because the audit filing to the federal clearinghouse occurred after its deadline of nine months beyond the fiscal year end. The root causes of the late filing were delays in finalizing the FY20 audit during the COVID pandemic, transitions in accounting systems, and lack of clear guidance. Baltimore Civic Fund engaged a new auditor for its FY20 audit and transitioned accounting systems late in FY20, delaying the finalization of the FY20 audit to April 2022. By that time, the Civic Fund had new finance staff and was planning another transition to a different accounting system. In addition, the Civic Fund’s leadership did not have clear guidance on whether a single audit was required as the received federal funds were passed through as subawards. When transitioning to the current accounting system was completed in fall 2022, the finance team prioritized cleaning and closing the FY21 books. Baltimore Civic Fund and Goldin Group worked together to ensure the FY21 2 audit was completed in Spring 2023 shortly after the FY21 books were cleaned and closed. When the FY21 audit was completed, the 3/31/2023 single audit deadline for FY22 passed. Baltimore Civic Fund and Goldin Group worked together to close the FY22 books shortly after the FY21 audit was completed to ensure the FY22 audit complete by Summer 2023.