Finding Number: 2023-005 Reporting - Compliance and Internal Control
Summary of Finding: CFR Section 200.303, Internal Controls, Section (a) states the Organization must
establish and maintain effective internal control over federal awards that provides reasonable assurance
that the Organization is ...
Finding Number: 2023-005 Reporting - Compliance and Internal Control
Summary of Finding: CFR Section 200.303, Internal Controls, Section (a) states the Organization must
establish and maintain effective internal control over federal awards that provides reasonable assurance
that the Organization is managing the federal awards in compliance with federal statutes, regulations, and
terms and conditions of the federal award. Management is responsible for establishing and maintaining a
system of internal control that should include controls over its reporting process.
2 CFR section 200.512(a) states that the data collection form and reporting package must be submitted the
earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit
period to the Federal Audit Clearinghouse (FAC). If the due date falls on a Saturday, Sunday, or federal
holiday, the reporting package is due the next business day. The Uniform Guidance does not have a provision
addressing whether the cognizant or oversight agencies may extend due dates.
During the fiscal year, we noted that the Organization failed to submit the data collection form and
reporting package to FAC on a timely basis.
Response to finding: We agree with the finding.
Corrective Action: The retaining of a new audit firm for the FY2023 audit, the departure of key staff and
reorganizational issues, winding down of Heartland Alliance and spin-off of entities into their own
companies all have prevented the timely filing this year.
Each new spin-off company will now be responsible for their own Financial Audit and Heartland Alliance is
winding down and will not require any further audits.
Individual(s) Responsible for Corrective Action Plan:
o Name: Robin Armour
o Title: Interim Chairman of the Board
o Email address: robin@amdcapital.com
o Anticipated Completion Date: March 31, 2025