Audit 371810

Finding 2024-002 (Significant Deficiency) Program(s): Conservation, Research, and Development Federal Agency: Department of Energy AL #: 81.086 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: Various – See SEFA Type of Compliance Finding: F) Equipment and Real Property Management Criteria Per 2 CFR section 200.313(d)(2) a physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years. Condition/Context During our audit of the Organization’s fiscal year ended December 31, 2024 federal award program, we noted the Organization did not conduct the physical inventory, as required. Cause Organization management had scheduled a property inventory for 2024 (no physical inventory was planned or completed in 2023). However, due to turnover of two key personnel charged with leading this work, they have no records of the results. They are completing one in 2025. Effect Management is not in compliance with the requirements of the federal award. Questioned Costs None Is the finding a repeat finding No Recommendations We recommend that Management perform the required physical inventory, as soon as possible Views of Responsible Officials / Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.

Finding 2024-001 Program(s): Conservation, Research, and Development and Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance Federal Agency: Department of Energy AL #: 81.086 and 81.117 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: Various – See SEFA Type of Compliance Finding: Other Matters Criteria 2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. The Federal Audit Clearinghouse considers the submission complete when it has received the electronic submission of both the data collection form and the reporting package. Condition/Context We noted the Organization did not provide all of the necessary supporting documentation to complete the audit and submit the reporting package to the Federal Audit Clearinghouse by the due date. Cause The Organization experienced significant funding shortages beginning in April of 2025, due to federal funding freezes. This necessitated significant layoffs and re-training of personnel. Due to this situation, they experienced a shortage of personnel to provide necessary documentation in a timely manner. Effect The Organization will not qualify as a low-risk auditee for the next fiscal year and a minimum of 40% of their total federal awards expended will need to be audited. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend that management maintain all applicable supporting documentation to complete the audit prior to the applicable Federal Audit Clearinghouse due date. Views of Responsible Officials / Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.