Audit 37704

Finding 2022-002: U.S. Department of Justice - Crime Victim Assistance No. 16.575 Reporting, Material Weakness Criteria: 2 CFR 200 requires that a non-Federal entity that expends $750,000 or more during the non-Federal entity?s fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of Subpart F-Audit Requirements of the Unform Guidance, issued pursuant to the Single Audit Act Amendment of 1996. Condition: The Organization?s federal funding exceeded $750,000 in previous years but did not comply with 2 CFR 200 which requires a Single Audit and Data Collection Form to be completed and submitted to the Federal Audit Clearing House. Effect: The Organization has not complied with the Single Audit compliance requirements in previous years when their federal funding expended was over the threshold. Questioned Costs: None. Context: During our financial and Single Audit procedures in 2022, we noted the Organization?s federal funding expended in previous years exceeded the threshold requiring a Single Audits and none were performed. Cause: The Organization was not aware that a Single Audit was required to be conducted in previous years. Recommendation: We recommend the Organization review all Federal awards in their entirety to its complying with the Single Audit compliance requirements when accepting federal funding. Response: The Organization is currently reviewing the revenue recognition in prior years to attempt to identify which fiscal years met the threshold requiring a single audit. When the scope of the issue is fully identified, the Organization will reach out to the impacted funding agencies. The cost of performing those audits will be material to Organization?s annual budget, but we will take any steps recommended by the funding agencies.

Finding 2022-002: U.S. Department of Justice - Crime Victim Assistance No. 16.575 Reporting, Material Weakness Criteria: 2 CFR 200 requires that a non-Federal entity that expends $750,000 or more during the non-Federal entity?s fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of Subpart F-Audit Requirements of the Unform Guidance, issued pursuant to the Single Audit Act Amendment of 1996. Condition: The Organization?s federal funding exceeded $750,000 in previous years but did not comply with 2 CFR 200 which requires a Single Audit and Data Collection Form to be completed and submitted to the Federal Audit Clearing House. Effect: The Organization has not complied with the Single Audit compliance requirements in previous years when their federal funding expended was over the threshold. Questioned Costs: None. Context: During our financial and Single Audit procedures in 2022, we noted the Organization?s federal funding expended in previous years exceeded the threshold requiring a Single Audits and none were performed. Cause: The Organization was not aware that a Single Audit was required to be conducted in previous years. Recommendation: We recommend the Organization review all Federal awards in their entirety to its complying with the Single Audit compliance requirements when accepting federal funding. Response: The Organization is currently reviewing the revenue recognition in prior years to attempt to identify which fiscal years met the threshold requiring a single audit. When the scope of the issue is fully identified, the Organization will reach out to the impacted funding agencies. The cost of performing those audits will be material to Organization?s annual budget, but we will take any steps recommended by the funding agencies.