Late Submission of the Single Audit Reporting Package/Preparation of the Schedule of Expenditures of Federal Awards Material Weakness/Non-compliance ALN: All programs Condition The organization did not complete and submit the single audit reporting package to the federal audit clearinghouse within the required timeframe and did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria In accordance with 2 CFR §200.512(a)(1) and §200.512(a)(2), a non-federal entity that expends $750,000 or more in federal awards during a fiscal year is required to submit the Single Audit reporting package to the Federal Audit Clearinghouse (FAC) no later than the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period. In addition, in accordance with 2 CFR §200.510(b), a SEFA must also be prepared. Cause This condition primarily resulted from the Organization’s limited prior experience with federal awards and the related Single Audit requirements, including preparation of the SEFA and submission of the reporting package to the Federal Audit Clearinghouse. Additionally, the Organization was not initially aware that certain grant funds received were federal in nature, which contributed to delays in identifying applicable reporting requirements. Effect or Potential Effect Failure to prepare a SEFA and submit the Single Audit reporting package timely may result in increased oversight by federal awarding agencies or pass-through entities and may affect the organization’s compliance status that could ultimately lead to loss of federal grant funding. Questioned Costs No questioned costs. Repeat finding This is not a repeat finding. Recommendation We recommend the Organization implement internal controls to monitor and reconcile federal grant awards for preparation of a complete and accurate SEFA within the requirements of 2 CFR §200.510(b). Additionally, we recommend the Organization evaluate federal grants during the yearend close process to ensure if single audit thresholds are met (federal expenditures in excess of $750,00 through June 30, 2025 and $1 million subsequent) a single audit is performed and submitted within regulation deadlines. Management’s Response We agree with auditors finding and have implemented internal controls to track the expenditures of federal awards to ensure the SEFA is prepare correctly and future single audits are conducted timely and submissions of the single audit reporting package are done within the required timeframe under Uniform Guidance.
Failure to register Unique Entity Identifier Significant Deficiency/Non-compliance ALN: All programs Condition The organization did not register with System for Award Management (SAM.gov) to obtain a Unique Entity ID (UEI) as required of any entity that receives federal funding. Criteria In accordance with 2 CFR §25.200(b) and 2 CFR §200.300, non-federal entities are required to register in the System for Award Management (SAM.gov), and obtain and maintain an active Unique Entity Identifier (UEI). Registration must be active prior to receiving a federal award and must remain active throughout the period of performance. Cause The failure to register with SAM.gov and obtain a UEI was due to lack of awareness of SAM.gov and UEI requirements under Unform Guidance. Effect or Potential Effect Failure to maintain active SAM.gov registration and a UEI may result in noncompliance with federal award terms and conditions, increased oversight or monitoring by federal awarding agencies or pass-through entities and potential suspension or delay of federal funding. Questioned Costs No questioned costs. Repeat finding This is not a repeat finding. Recommendation We recommend that the Organization immediately register with SAM.gov and obtain a UEI and review uniform guidance requirements to ensure further compliance. Management’s Response We agree with auditors finding and have registered on the SAM.gov website to obtain a UEI. Management does not anticipate this issue in the future.