Audit 410168

Criteria In accordance with 2 U.S. Code of Federal Regulations (CFR) 200.512, the Organization must submit its single audit reporting package and data collection form to the Federal Audit Clearinghouse (the FAC) within the earlier of 30 days after receipt of the auditors’ report, or nine months after the end of the audit period. Condition The Organization did not submit its single audit reporting packages and data collection form (Form SFSAC) for the year ended June 30, 2023 to the FAC by the required due date. Cause The Organization did not have adequate procedures to ensure the timely filing of the single audit reporting package and data collection form to the FAC. Effect Late filing has resulted in noncompliance with timely submission of financial information to grantor agencies. Repeated Finding See finding No. 2022-004 included in the Status of Prior Audit Findings. Recommendation We again recommend that the Organization improve its financial reporting process to ensure compliance with the reporting requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which requires that the single audit reporting package and data collection form be submitted to the FAC within the earlier of 30 days after the receipt of the auditors’ report, or nine months after the end of the audit period, unless a longer period of time is agreed to in advance by the cognizant or oversight agency for the audit. Views of Responsible Officials and Planned Corrective Action Management agrees with the finding. The Organization will implement procedures to monitor reporting deadlines and assign responsibility for the timely submission of the single audit reporting package and Data Collection Form to the Federal Audit Clearinghouse. Management will also establish a review process to ensure all future filings are completed within the required timeframe.

Criteria Under 2 CFR 200.303, non-Federal entities are required to establish and maintain effective internal controls over Federal awards. In addition, 2 CFR 200.334 requires financial and programmatic records supporting Federal awards to be retained and made available for examination. Condition During testing of expenditures and related reimbursement requests for compliance with the period of performance compliance requirement, the Organization was unable to provide the original reimbursement request summary supporting certain selected drawdowns. Management subsequently regenerated expenditure detail for the applicable billing periods and provided supporting documentation supporting eligible program expenditures in excess of the amounts requested for reimbursement. Cause The Organization did not maintain adequate controls to ensure reimbursement request documentation was retained and readily accessible to support amounts claimed under the Federal award. Effect The inability to maintain and readily provide supporting reimbursement documentation increases the risk that noncompliance with Federal program requirements may not be timely detected and may impair monitoring and audit activities. The lack of retained documentation also limits the ability to efficiently demonstrate compliance with Federal award requirements. Recommendation We recommend that the Organization strengthen document retention procedures to ensure reimbursement request packages and supporting documentation are maintained and readily accessible for review to support federal expenditures and reimbursement requests. Views of Responsible Officials and Planned Corrective Action Management agrees with the finding and will implement procedures to ensure reimbursement request documentation and supporting schedules are retained in a centralized location and readily accessible for future monitoring and audit purposes.