VALLEY COMPREHENSIVE COMMUNITY MENTAL HEALTH CENTER, INCNon-Profit

Criteria: According to 2 CFR 200.512, the Single Audit report must be submitted to the Federal Audit Clearinghouse within 30 days of the completion of the audit, but no later than nine months after the end of the audit period. The failure to comply with this requirement constitutes noncompliance with federal regulations. Condition: During our audit of the Organization for the year ending June 30, 2025, it was noted that the Uniform Guidance report, specifically the Single Audit report, was not filed within the required time frame. The report, which was due on March 31, 2026, was submitted on June 26, 2026. Cause: The late filing of the Uniform Guidance report was due to insufficient internal controls and delays in production of audit requests. Effect: The late submission of the report resulted in noncompliance with federal reporting requirements under the Uniform Guidance, which could have implications for future funding, as well as increased risk of audit scrutiny. This delay also impacted the timeliness of the Federal Audit Clearinghouse’s ability to review and process the report, potentially delaying subsequent funding releases or audits. Recommendation: We recommend that the Organization implement stronger internal controls to ensure that reporting deadlines are effectively monitored and met. This may include: - Developing and maintaining a reporting calendar with clearly defined deadlines for financial reporting. - Assigning responsibility for tracking and ensuring timely submission of reports. Additionally, we suggest that the Organization conduct a root cause analysis to address any underlying issues and implement corrective actions to prevent future delays. Management's Response: Management agrees with the finding and will implement processes to mitigate the risk of future late file reports.

Criteria: According to 2 CFR 200.512, the Single Audit report must be submitted to the Federal Audit Clearinghouse within 30 days of the completion of the audit, but no later than nine months after the end of the audit period. The failure to comply with this requirement constitutes noncompliance with federal regulations. Condition: During our audit of the Organization for the year ending June 30, 2024, it was noted that the Uniform Guidance report, specifically the Single Audit report, was not filed within the required time frame. The report, which was due on March 31, 2025, was submitted on June 26, 2025. Cause: The late filing of the Uniform Guidance report was due to insufficient internal controls and delays in production of audit requests. Effect: The late submission of the report resulted in noncompliance with federal reporting requirements under the Uniform Guidance, which could have implications for future funding, as well as increased risk of audit scrutiny. This delay also impacted the timeliness of the Federal Audit Clearinghouse’s ability to review and process the report, potentially delaying subsequent funding releases or audits. Recommendation: We recommend that the Organization implement stronger internal controls to ensure that reporting deadlines are effectively monitored and met. This may include: - Developing and maintaining a reporting calendar with clearly defined deadlines for financial reporting. - Assigning responsibility for tracking and ensuring timely submission of reports. Additionally, we suggest that the Organization conduct a root cause analysis to address any underlying issues and implement corrective actions to prevent future delays. Management Response: Management agrees with the finding and will implement processes to mitigate the risk of future late file reports.