Criteria: 2 CFR Section 200.512 states the entity’s audit, the data collection form, and the reporting
package must be submitted within 30 calendar days after the auditee receives the auditor's report(s)
or nine months after the end of the audit period (whichever is earlier). Additionally, entities are
required to submit annual Federal Financial Reports within 90 days of the reporting period.
Condition: The Organization’s financial information for the periods ending December 31, 2021,
2022, and 2023, were not finalized in a timely manner. Each was finalized during July 2025, which
was after the reporting requirement for each period.
Cause: The Organization was unaware of the audit requirement. Prior to the March 2021 award,
the Organization was not subject to any reporting requirements.
Effect: Failure to timely submit reports results in noncompliance with reporting requirements.
Questioned Costs: None
Context: The Organization’s financial information was not finalized until July 2025, which was
after each period’s reporting requirement.
Criteria: 2 CFR Section 200.400 requires allowable cost principles to be followed in accordance
with the Assistance Agreement.
Condition: The Organization’s Assistance Agreement limited reimbursement of certain
employees’ compensation, excluding the Executive Director, to 92.31% of their total
compensation. The Organization requested reimbursement for 100% of certain employees’
compensation.
Cause: Subsequent to the Assistance Agreement being awarded and finalized, the Organization
negotiated with the grantor to remove the compensation limitation; however, the Assistance
Agreement was not updated for this change.
Effect: Failure to comply with Assistance Agreement.
Questioned Costs: Based on the total labor charged, excluding the Executive Director, there are
likely questioned costs, which include direct labor, fringe on direct labor, and general and
administrative fringe, totaling approximately $180,000.
Recommendation: Management should ensure all negotiated agreements are included in the
Assistance Agreement.
Criteria: 2 CFR Section 200.512 states the entity’s audit, the data collection form, and the reporting
package must be submitted within 30 calendar days after the auditee receives the auditor's report(s)
or nine months after the end of the audit period (whichever is earlier). Additionally, entities are
required to submit annual Federal Financial Reports within 90 days of the reporting period.
Condition: The Organization’s financial information for the periods ending December 31, 2021,
2022, and 2023, were not finalized in a timely manner. Each was finalized during July 2025, which
was after the reporting requirement for each period.
Cause: The Organization was unaware of the audit requirement. Prior to the March 2021 award,
the Organization was not subject to any reporting requirements.
Effect: Failure to timely submit reports results in noncompliance with reporting requirements.
Questioned Costs: None
Context: The Organization’s financial information was not finalized until July 2025, which was
after each period’s reporting requirement.
Criteria: 2 CFR Section 200.400 requires allowable cost principles to be followed in accordance
with the Assistance Agreement.
Condition: The Organization’s Assistance Agreement limited reimbursement of certain
employees’ compensation, excluding the Executive Director, to 92.31% of their total
compensation. The Organization requested reimbursement for 100% of certain employees’
compensation.
Cause: Subsequent to the Assistance Agreement being awarded and finalized, the Organization
negotiated with the grantor to remove the compensation limitation; however, the Assistance
Agreement was not updated for this change.
Effect: Failure to comply with Assistance Agreement.
Questioned Costs: Based on the total labor charged, excluding the Executive Director, there are
likely questioned costs, which include direct labor, fringe on direct labor, and general and
administrative fringe, totaling approximately $180,000.
Recommendation: Management should ensure all negotiated agreements are included in the
Assistance Agreement.