Finding Text
Item 2023-002: Report Submission to the Federal Audit Clearinghouse (Other Matter Required to be Reported Under the Uniform Guidance) (Material Weakness) Condition: The Council did not prepare and submit its Data Collection Form and Reporting Package for the year ended June 30, 2023 to the Federal Audit Clearinghouse by the due date of March 31, 2024. Criteria: Per §200.512 of the Uniform Guidance, Report Submission, the audit shall be completed and the Data Collection Form and Reporting Package shall be electronically transmitted within the earlier of thirty (30) days after receipt of the auditor’s reports, or nine (9) months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal holiday, the Data Collection Form and Reporting Package are due the next business day. The Uniform Guidance does not permit the recipient to extend the due date. Cause: Management did not review subsidiary ledgers for accuracy and reconcile them to the general ledger on a timely basis. The Council also replaced their Finance Director and other finance staff in fiscal year 2023, which also impacted the timely reconciliation of their accounting records. Accordingly, the Council’s general ledger for the year ended June 30, 2023 was not closed out in a timely manner. Effect: The Council’s Data Collection Form and Reporting Package for the year ended June 30, 2023 was not prepared and submitted to the Federal Audit Clearinghouse by the due date. Recommendation: We recommend that management implement monthly financial reporting and closeout processes so that the financial closeout process can be performed timely.