Audit 414899

2025-003 Schedule of Expenditures of Federal Awards Preparation (SEFA) Criteria: 2 CFR §200.510 requires non-Federal entities expending federal awards to prepare a complete and accurate SEFA that includes all Federal awards expended during the fiscal year. Condition: The Organization's SEFA materially understated Federal expenditures. During the audit, additional Federal reimbursements were identified and included, resulting in a material adjustment to the SEFA. Cause: Management's procedures for identifying, accumulating, and reporting Federal expenditures were not sufficient to ensure the SEFA was complete and accurate. Effect: A materially misstated SEFA could result in inaccurate reporting of Federal expenditures, affect the identification of major programs, and impair compliance with Uniform Guidance reporting requirements. Recommendation: We recommend that management strengthen its procedures for preparing and reviewing the SEFA by reconciling Federal expenditures to the general ledger, grant agreements, and reimbursement requests before the SEFA is finalized. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation and plans to enhance its SEFA preparation and review procedures.

2025-004 Procurement Policy Criteria: Under 2 CFR §200.318 through 200.327, General Procurement Standards, a non-federal entity must use and document procurement procedures for the acquisition of property or services required under a federal award or subaward. Additionally, the non-federal entity must include policies and procedures related to competition, informal and formal procurement methods, and noncompetitive procurement known as sole source. 2 CFR §200.214, Suspension and Debarment, requires entities to verify that vendors are not suspended or debarred from participating in federal funds. Condition: There is no evidence of a documented formal procurement policy with regards to federal grant awards and expenditures; no documented support that a competitive price analysis for vendors and organizations funded with federal grant funds were performed; and no evidence that suspension and debarment verifications were performed for certain vendors and organizations, as required by the general procurement standards of the Uniform Guidance. Context: We tested all procurement transactions totaling $863,741. All transactions tested lacked documentation to demonstrate compliance with the applicable procurement requirements of the Uniform Guidance. Cause: Management had not established and formally adopted procurement policies and procedures consistent with Uniform Guidance requirements during the audit year. Effect: Without documented procurement policies, there is an increased risk that procurements may not be conducted in accordance with Federal requirements, resulting in potential noncompliance with the Uniform Guidance. Charges relating to vendor services and sub-awards that were charged to the federal award may not be in accordance with the specific compliance requirements of the Uniform Guidance. Recommendation: We recommend that management develop, formally adopt, and implement written procurement policies and procedures that comply with the procurement standards in 2 CFR §200.317 through 200.327 and provide training to personnel responsible for purchasing. We also recommend the Organization to adopt policies that incorporate the requirements of 2 CFR §200.214 regarding suspension and debarment regulations. We also recommend that a review of all existing vendor contract filed be performed to ensure that the documentation, as required by the Uniform Guidance, is maintained in the files.Views of Responsible Officials and Planned Corrective Actions: The Organization is in the process of developing a corrective action plan and provide personnel training.

2025-005 Federal Awards Submission Criteria: 2 CFR §200.512(a), Report Submission, requires the audit to be completed, and the data collection form and the reporting package to be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 calendar days after receipt of the auditors' reports or nine months after the Organization's audit period, whichever is earlier. Condition: The Organization’s did not submit its Single Audit Reporting Package to the Federal Audit Clearinghouse within the deadline established by the Uniform Guidance. Context: The deadline for the Organization to submit the audit, data collection form, and reporting package for the year ended December 31, 2025 was September 30, 2026. As of October 5, 2026, the Organization had not submitted its Single Audit reporting package to the Federal Audit Clearinghouse. Cause: The Organization did not have adequate procedures in place to monitor the Single Audit submission deadline and ensure timely submission of the reporting package to the Federal Audit Clearinghouse. Effect: The late submission may affect the Organization's eligibility to be considered a low-risk auditee under 2 CFR § 200.520. Recommendation: We recommend that the Organization establish and implement procedures to monitor Single Audit reporting requirements and ensure that the audit, data collection form, and reporting package are submitted to the Federal Audit Clearinghouse within the required timeframe. Views of Responsible Officials and Planned Corrective Actions: The Organization stated that procedures will be implemented to ensure future Single Audit reporting packages are submitted timely in accordance with Uniform Guidance requirements.