Audit 390610

Finding No. 2024-001: Prior Year Reporting Package and Data Collection Not Filed Timely a. Liberty Georgian Arms HDFC, Inc. December 31, 2023 reporting package and data collection form was not filed with the Federal Audit Clearinghouse on time. b. Criteria: 2 CFR section 200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. c. Effect of condition: The effect is that the project would not be considered a “Low Risk Auditee” for at least the fiscal years ending December 31, 2024 and December 31, 2025. This designation will require the auditor to audit at least 40% of the project’s programs as Major programs until such time that the project may be considered a “Low Risk Auditee” again. d. Cause of condition: The reporting package and data collection form was submitted to the Federal Audit Clearinghouse late. Management made multiple attempts to follow up with the prior CPA firm to ensure timely completion of an audit. Responses from CPA firm were significantly delayed, often requiring multiple follow-ups before action was taken. The form was submitted on January 15, 2026. e. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. f. Views of responsible officials and planned corrective actions: Liberty Georgian Arms HDFC, Inc. agrees with the finding and the auditor’s recommendations have been adopted. Management has since engaged a new CPA firm to perform audit services.

Finding No. 2024-002: Current Year Reporting Package and Data Collection Not Filed Timely a. Liberty Georgian Arms HDFC, Inc. December 31, 2024 reporting package and data collection form was not filed with the Federal Audit Clearinghouse on time. b. Criteria: 2 CFR section 200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. c. Effect of condition: The effect is that the project would not be considered a “Low Risk Auditee” for at least the fiscal years ending December 31, 2025 and December 31, 2026. This designation will require the auditor to audit at least 40% of the project’s programs as Major programs until such time that the project may be considered a “Low Risk Auditee” again. d. Cause of condition: The reporting package and data collection form was not submitted to the Federal Audit Clearinghouse because the 2023 audit was completed in October 2025, which is after a deadline for the 2024 reporting package filing of September 30, 2025. Prior year late submissionautomatically resulted in current year late submission. The form will be submitted as soon as possible. e. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. f. Views of responsible officials and planned corrective actions: Liberty Georgian Arms HDFC, Inc. agrees with the finding and the auditor’s recommendations have been adopted.