Audit 392153

Finding 2024-001 – Late Audit Requirement Reporting Type of Finding Material Weakness 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). Condition: The Organization’s financial information for the year ended December 31, 2024 was not finalized in a timely manner. The Organization’s data collection form and reporting package were finalized in January 2026, which was after the reporting requirement for the 2024 period. Cause: The Organization had been unaware of the audit requirement and completed its first audit for the period of March 2021 through December 2023 in July 2025. The 2023 audit identified a finding related to the accounting and reimbursements of the Award. The Organization implemented changes to address the issues related to the finding, which required additional time to prepare for the 2024 audit. 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 January 2026, which was after each period’s reporting requirement. Identification as a Repeat Finding: See finding 2023-001 included in the Summary of Prior Audit Findings. Recommendation: In preparing for future audits, the Organization should be more diligent in preparing accurate and timely financial information to ensure the audit is complete and the data collection form and reporting package can be submitted prior to its deadline. Management Response: Management concurs with audit recommendation. See Management’s Corrective Action Plan.

Finding 2024 – 002 Noncompliance with Allowable Cost/Cost Principle Compliance Requirement Requirement Allowable Cost/Cost Principle Compliance Requirement Type of Finding Material Weakness Criteria: 2 CFR Section 200.400 requires allowable cost principles to be followed in accordance with the Assistance Agreement. Condition: Prior to the April 2024 Modification 0015, the 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. The limitation was removed as part of Modification 0015. Cause: Subsequent to the March 2021 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 until the April 2024 Assistance Agreement. Effect: Failure to comply with March 2021 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 $23,000. Identification as a Repeat Finding: See finding 2023-002 included in the Summary of Prior Audit Findings. Recommendation: Management should ensure all negotiated agreements are included in the Assistance Agreement. Management Response: See Corrective Action Plan section.