Finding Text
Finding 2021-001 Not Meeting Audit Deadline
Criteria: The Association is required to submit an audited financial statement to the grantor agencies and the Federal Clearing House by the annual deadline, as subject to the audit requirements under the Uniform Guidance and Government Auditing Standards. The Association should have an internal control process in place to ensure timely submission of its annual audited financial statements to the appropriate parties.
Condition: The Association failed to submit the fiscal year 2020-2021 audited financial statement package to the appropriate parties by the required deadline of September 30, 2022.
Questioned Cost: None.
Cause: During the pandemic, management made numerous efforts to contact various accounting and auditing firms including the prior auditing firm. The Association was not able to obtain a qualified auditing firm. Additionally, the Association’s controller retired in December 2020 due to illness. The Association continued to experience staff turnover in the following years, resulting in further delays in the process.
Effect: The delay in completing the required audit resulted in the Association being unable to qualify as a low-risk auditee and could also cause future funding delays.
Recommendation: We recommend that management submit the audited financial statements to the appropriate parties as soon as possible. We also recommend that the Association continue to obtain the necessary temporary support while searching to recruit new staff members. Management may also consider training seasoned staff members for important roles at the Association to provide backup support.
Views of Responsible Officials: The Association’s management acknowledges the finding and has obtained and completed the required audit for the fiscal year 2020-2021. Management will submit the final audited financial statements to the appropriate parties as soon as feasible.