Key Findings from the 2024 Federal Single Audit of American Sustainable Business Network, Inc.

In 2024, the American Sustainable Business Network, Inc. underwent a federal single audit conducted by APRIO LLP. This audit is crucial for ensuring compliance with federal regulations and assessing the organization’s financial health.

Key Audit Details

• Total Expenditures: $2,384,378
• Auditor: APRIO LLP
• Assistance Listing: 10.937 (Partnerships for Climate-Smart Commodities)
• Audit Year: 2024

Key Findings

The audit uncovered two major findings related to internal controls:

1. Material Weakness in Internal Controls (Finding 2024-004)

• Criteria: Non-Federal entities must maintain effective internal controls as per 2 CFR 200.303.
• Condition: The organization lacked documented internal controls over compliance, particularly in disbursements, payroll, and progress reporting. Although written policies were implemented in April 2024, they were not retroactively applied.
• Impact: This gap raises concerns about the reliability of financial reporting and compliance with federal statutes.

2. Material Weakness in Payroll Documentation (Finding 2024-005)

• Criteria: Charges to federal awards for salaries must be based on accurate records as per 2 CFR 200.430(g).
• Condition: Two employees charged time to the federal program without maintaining adequate timesheets. This lack of documentation hindered the ability to verify the accuracy of payroll expenses.
• Impact: This finding suggests potential misallocation of federal funds and raises compliance risks.

Auditor Performance

APRIO LLP conducted a thorough examination, identifying critical areas needing improvement. Their findings highlight the importance of establishing robust internal controls and maintaining accurate documentation.

Organizational Impact

The findings from this audit underscore the need for the American Sustainable Business Network, Inc. to enhance its internal control systems. Addressing these weaknesses is vital for: - Ensuring compliance with federal regulations. - Maintaining the integrity of financial reporting. - Protecting the organization’s reputation and funding opportunities.

Next Steps

The organization is encouraged to: - Implement comprehensive internal control policies. - Train staff on maintaining accurate documentation. - Regularly review compliance with federal requirements.

By taking these steps, the American Sustainable Business Network, Inc. can strengthen its financial practices and ensure better compliance in future audits.