Finding 2022-3 - Due to the expenditures noted in 2022-1 not being reported in the correct period, MSMA did not have an audit in accordance with the Uniform Guidance conducted for 2021. It appears that if these expenditures totaling $161,256 were reported in the correct period, MSMA would have exceeded the $750,000 threshold for an audit in accordance with the Uniform Guidance. Condition - Expenditures during 2021 totaling $161,256 were not recorded in the correct period and, therefore, an audit in accordance with the Uniform Guidance was not conducted or submitted to the Federal Audit Clearinghouse as MSMA believed they had not met the requirement. Criteria or Specific Requirement - The Uniform Guidance Section 200.501 requires non-Federal entities that expend more than $750,000 in Federal awards during their fiscal year to have a single audit. Effect - MSMA was not compliant with the Uniform Guidance requirement noted above for fiscal year 2021. Recommendation - We recommend that MSMA determine whether an audit in accordance with Uniform Guidance is required for 2021 and, if so, engage a firm to conduct the procedures. Management Response - Management agrees with the finding and will determine the necessity of having an audit in accordance with Uniform Guidance for 2021 performed and submitted to the appropriate parties in accordance with Uniform Guidance.
Finding 2022-1 - Material weakness in internal control over financial reporting/compliance? certain federal expenditures were not reported in the correct period on the accrual basis of accounting. Condition - Expenditures totaling $161,256 were incurred in 2021 not accrued and were expensed in 2022. As such federal expenditures were underreported in 2021. Criteria or Specific Requirement - The Uniform Guidance Section 200.303 requires non-Federal entities to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Effect - The lack of sufficient processes and internal controls puts MSMA at risk for misstatement due to error or fraud. In addition, this increases the risk of inaccurate reporting to federal government granting agencies. Recommendation - MSMA should ensure that all personnel are aware of the requirements for reporting in the correct period and that accounting personnel are aware of such expenditures in a timely manner. Management Response - Management agrees with the finding and will ensure expenditures are recorded in the correct period going forward.
Finding 2022-2 - Significant deficiency in internal control over financial reporting/compliance ? submission of duplicate charges. Condition - MSMA submitted and was reimbursed for duplicate charges totaling $37,030 during 2022. Criteria or Specific Requirement - The Uniform Guidance Section 200.303 requires non-Federal entities to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Effect - The lack of sufficient processes and internal controls puts MSMA at risk for misstatement due to error or fraud. In addition, this increases the risk of inaccurate reporting to federal government granting agencies. Recommendation - MSMA should ensure that appropriate controls are in place for review of submissions to prevent duplication of submissions. Management Response - Management agrees with the finding and will ensure additional review procedures are in place.
Finding 2022-3 - Due to the expenditures noted in 2022-1 not being reported in the correct period, MSMA did not have an audit in accordance with the Uniform Guidance conducted for 2021. It appears that if these expenditures totaling $161,256 were reported in the correct period, MSMA would have exceeded the $750,000 threshold for an audit in accordance with the Uniform Guidance. Condition - Expenditures during 2021 totaling $161,256 were not recorded in the correct period and, therefore, an audit in accordance with the Uniform Guidance was not conducted or submitted to the Federal Audit Clearinghouse as MSMA believed they had not met the requirement. Criteria or Specific Requirement - The Uniform Guidance Section 200.501 requires non-Federal entities that expend more than $750,000 in Federal awards during their fiscal year to have a single audit. Effect - MSMA was not compliant with the Uniform Guidance requirement noted above for fiscal year 2021. Recommendation - We recommend that MSMA determine whether an audit in accordance with Uniform Guidance is required for 2021 and, if so, engage a firm to conduct the procedures. Management Response - Management agrees with the finding and will determine the necessity of having an audit in accordance with Uniform Guidance for 2021 performed and submitted to the appropriate parties in accordance with Uniform Guidance.
Finding 2022-1 - Material weakness in internal control over financial reporting/compliance? certain federal expenditures were not reported in the correct period on the accrual basis of accounting. Condition - Expenditures totaling $161,256 were incurred in 2021 not accrued and were expensed in 2022. As such federal expenditures were underreported in 2021. Criteria or Specific Requirement - The Uniform Guidance Section 200.303 requires non-Federal entities to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Effect - The lack of sufficient processes and internal controls puts MSMA at risk for misstatement due to error or fraud. In addition, this increases the risk of inaccurate reporting to federal government granting agencies. Recommendation - MSMA should ensure that all personnel are aware of the requirements for reporting in the correct period and that accounting personnel are aware of such expenditures in a timely manner. Management Response - Management agrees with the finding and will ensure expenditures are recorded in the correct period going forward.
Finding 2022-2 - Significant deficiency in internal control over financial reporting/compliance ? submission of duplicate charges. Condition - MSMA submitted and was reimbursed for duplicate charges totaling $37,030 during 2022. Criteria or Specific Requirement - The Uniform Guidance Section 200.303 requires non-Federal entities to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Effect - The lack of sufficient processes and internal controls puts MSMA at risk for misstatement due to error or fraud. In addition, this increases the risk of inaccurate reporting to federal government granting agencies. Recommendation - MSMA should ensure that appropriate controls are in place for review of submissions to prevent duplication of submissions. Management Response - Management agrees with the finding and will ensure additional review procedures are in place.