Audit 372574

Information on Federal Program – Assisting Listing Number 11.307, Economic Adjustment Assistance Criteria or Specific Requirement – Per the Uniform Guidance (2 CFR 200.327), recipients of federal awards are required to submit the Federal Financial Report (SF-425) bi-annually to the awarding agency, covering all expenditures and unobligated balances for the reporting period. 36 Condition – The auditee did not submit the required SF-425 Financial Report for the period May 1, 2023 through December 31, 2023. As a result, the required bi-annual reporting was not completed in accordance with federal requirements. Questioned Costs: $0 Context: The SF-425 for the period May 1, 2023 through December 31, 2023 was not submitted to the awarding agency. Cause - The deficiency was caused by inadequate procedures for tracking required submissions. Effect or Potential Effect - Failure to submit the required SF-425 Financial Report may result in noncompliance with federal reporting requirements, which could impact continued funding, delay reimbursement, or result in additional oversight by the awarding agency. Recommendation - We recommend that the auditee implement procedures to ensure timely submission of all required federal financial reports, including maintaining a calendar of reporting deadlines and assigning responsibility for monitoring compliance. Views of Responsible Officials – Management concurs with this finding. New personnel are now assigned responsibility for compliance and reporting, and management has completed a full review of all reporting obligations across federal awards. Management is in the process of developing standardized grant reporting procedures, enhanced tracking tools, and formal internal review controls to ensure timely and accurate submissions going forward. These procedures will be implemented by the first quarter of 2026.

Information on Federal Program – Assisting Listing Number 11.307, Economic Adjustment Assistance Criteria or Specific Requirement – According to 2 CFR Part 200.512, auditees are required to submit the audit reporting package, including the Single Audit report, to the Federal Audit Clearinghouse within 30 days after receipt of the auditor’s report(s), or nine months after the end of the audit period, whichever comes first. Condition – The auditee did not submit the required audit reporting package for the fiscal year ended December 31, 2023 with the Federal Audit Clearinghouse within the required time frame which was beyond the required deadline of September 30, 2024. Questioned Costs: $0 Context: The reporting package was submitted past the required deadline. Cause - The delay was due to a lack of effective internal controls and oversight to ensure identification of federal funding and timely submission of the audit reporting package. Effect or Potential Effect - Late submission of the audit reporting package may result in non-compliance with federal requirements, potentially affecting the auditee’s eligibility for future federal funding and subjecting the auditee to increased scrutiny or penalties. Recommendation - We recommend that the Organization establish and implement a formal process to monitor and ensure identification of federal funding and timely submission of the audit reporting package to the Federal Audit Clearinghouse. This process should include setting internal deadlines and assigning responsibility to specific personnel for compliance monitoring. Views of Responsible Officials – Management has reviewed the finding related to the late filing of the audit report to the Federal Audit Clearinghouse and concurs with this finding. Management has taken immediate steps to strengthen oversight and ensure future compliance. Knowledgeable personnel are now in place and have been made fully aware of all federal reporting requirements and deadlines. Management is actively developing formalized policies and procedures governing federal reporting, including a centralized compliance calendar, documented workflows, defined roles and responsibilities, and an internal review process prior to submission. These measures will be implemented by the first quarter of 2026.