Audit 411332

Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires organizations that exceed the annual federal expenditure threshold to undergo a compliance audit of federal programs. Condition and Context: During our audit, we noted that the Organization expended federal funds in excess of the applicable Uniform Guidance audit threshold for the fiscal years 2021 through 2024; however, a Uniform Guidance audit was not completed for any of these years. Questioned Costs: N/A Cause and Effect: The Organization did not have adequate processes or oversight in place to monitor federal expenditures and ensure compliance with Uniform Guidance audit requirements, resulting in the oversight that a Single Audit was required for fiscal years 2021 through 2024. As a result, the Organization is not in compliance with Uniform Guidance requirements, which may increase the risk of questioned costs, potential funding implications, and heightened scrutiny from federal agencies or pass-through entities. Failure to comply with Uniform Guidance audit requirements may result in federal agencies' imposing sanctions, requiring repayment of funds, or restricting the Organization’s ability to receive future federal funding. In addition, there is an increased risk that noncompliance with grant requirements may not be identified and addressed on a timely basis. Repeat Finding: No Recommendation: We recommend that management establish procedures to monitor federal expenditures on an annual basis and ensure compliance with Uniform Guidance audit requirements. Management should also consult with funding agencies and regulatory bodies, as appropriate, to determine whether any corrective actions or retroactive reporting may be necessary to the address prior-year noncompliance. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See attached Corrective Action Plan.