Condition: The audit reporting package submission to Veterans Association will be delayed by three months. Criteria: According to 2 CFR 200.507(c)(1), the audit must be completed, and the reporting required by paragraphs (c)(2) or (c)(3) must be submitted within either 30 calendar days of receiving the auditor's report or nine months after the end of the audit period, unless a different timeframe is specified in a program-specific audit guide. Cause: Transition in accounting personnel (book-keeping service provider) during the year and change in auditors for financial year ended September 30, 2023. Effect: It delayed completion of the financial statement closing process and thus the audit. Recommendation: a) Develop a structured timeline for future audits, and b) Implement a robust training program/ Knowledge Transfer plan for accounting service providers. Management’s Response: We acknowledge the finding regarding the delay in submitting the audit report as required by 2 CFR 200.507(c)(1). The delay was primarily due to a transition in our accounting personnel and a change in auditors, which resulted in unforeseen challenges. To address this issue, we have taken the following steps: a)Accountant Training: We are implementing a training program for our accounting personnel to ensure they are well-versed in compliance requirements and audit processes. b)Audit Timeline Improvement: We are developing a more structured timeline for future audits, including earlier engagement with auditors to facilitate a smoother process. c)Regular Monitoring: We will establish a system for regular monitoring of compliance deadlines to prevent future delays.
Condition: The audit reporting package submission to Veterans Association will be delayed by three months. Criteria: According to 2 CFR 200.507(c)(1), the audit must be completed, and the reporting required by paragraphs (c)(2) or (c)(3) must be submitted within either 30 calendar days of receiving the auditor's report or nine months after the end of the audit period, unless a different timeframe is specified in a program-specific audit guide. Cause: Transition in accounting personnel (book-keeping service provider) during the year and change in auditors for financial year ended September 30, 2023. Effect: It delayed completion of the financial statement closing process and thus the audit. Recommendation: a) Develop a structured timeline for future audits, and b) Implement a robust training program/ Knowledge Transfer plan for accounting service providers. Management’s Response: We acknowledge the finding regarding the delay in submitting the audit report as required by 2 CFR 200.507(c)(1). The delay was primarily due to a transition in our accounting personnel and a change in auditors, which resulted in unforeseen challenges. To address this issue, we have taken the following steps: a)Accountant Training: We are implementing a training program for our accounting personnel to ensure they are well-versed in compliance requirements and audit processes. b)Audit Timeline Improvement: We are developing a more structured timeline for future audits, including earlier engagement with auditors to facilitate a smoother process. c)Regular Monitoring: We will establish a system for regular monitoring of compliance deadlines to prevent future delays.
Condition: The Center did not submit their financial statements to the Federal Audit Clearinghouse prior to the filing deadline. Criteria: Entities subject to single audit requirements are required to submit their financial statements within nine months of the fiscal year end or thirty days of the audit report date (whichever is sooner) in accordance with 2 CFR part 200 subpart F. Cause: The Center was not previously required to file with the Federal Audit Clearinghouse under 2 CFR part 200 subpart F §200.507(c)(1) because its prior grant expenditures did not exceed the $750,000 threshold. During the course of the Center’s annual audit, the determination was made that federal funds were spent in excess of $750,000. Upon this determination, the scope of the financial audit was expanded to ensure compliance with 2 CFR part 200 Subpart F. We concluded the single audit on November 10, 2023. Effect: Submission was not made timely. Recommendation: We recommend the Center closely monitor federal expenditures and ensure accurate reporting in the future to enable earlier determination if a filing with the Federal Audit Clearinghouse is required. In addition, we recommend starting the audit process in the spring to allow ample time to comply with the nine-month deadline. Views of Responsible Officials and Planned Corrective Actions: The Center agrees that the single audit report was not timely filed. As referenced above, the Center was previously under the $750,000 threshold for the single audit requirement, but completed and submitted the single audit report once the requirement was known. The Center has provided a corrective action plan to ensure timely filing going forward.
Timeliness of Single Audit Completion Type of Finding: Material Noncompliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with report submission for program-specific audit provisions. 2 CFR 200.507(c)(1) indicates that the audit must be completed and the required reporting submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a different period is specified in a program-specific audit guide. Condition: The Alliance did not submit the audit within the required timeframe. Questioned costs: None. Context: This is the first year the Alliance was required to have a single audit performed under Uniform Guidance. Cause: The Alliance was unaware of the requirements for timeliness of a single audit. Effect: The Alliance is not in compliance with the federal regulations. Repeat Finding: No Recommendation: We recommend the Alliance continuously monitor it’s expenditures of federal funds and begin the process of engaging an Auditor in a timely manner when the Alliance is aware that it will exceed the threshold triggering a single audit. Views of Responsible Officials: Management partially agrees. While agreeing that the Single Audit was not timely, the Alliance had been trying for a number of months to find an auditor. There is only one CPA on the entire island of American Samoa, and she doesn’t perform audits. There is also the issue of the territory being very remote, in fact, the audit firm performing the audit was several time zones away from American Samoa. Now that the Alliance has a relationship with an audit firm, any Single Audits required in the future will be performed in a timely manner.
Type of Finding: Material Noncompliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with report submission for program-specific audit provisions. 2 CFR 200.507(c)(1) indicates that the audit must be completed and the required reporting submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a different period is specified in a program-specific audit guide. Condition: The Coalition did not submit the audit within the required timeframe. Questioned costs: None. Context: This is the first year The Coalition was required to have a single audit performed under Uniform Guidance. Cause: The Coalition did not submit the annual financial report on time due to for single audit purposes due to various extraordinary factors. These included a super typhoon which hit the island early in the year, causing infrastructure and communications issues; big four firm auditors which were situated on the island left the market and could not perform the audit; and multiple other mid to small sized firms declining the job due to scheduling or capacity issues. Finally, they were able to find an auditor late in August, which delayed the submission even further. Effect: The Coalition is not in compliance with the federal regulations. Repeat Finding: No Recommendation: We recommend the Coalition continuously monitor its expenditures of federal funds and begin the process of engaging an Auditor in a timely manner when the Coalition is aware that it will exceed the threshold triggering a single audit. Views of Responsible Officials: Per management, they will make it a priority to be aware of all deadlines related to the submission of quarterly and annual reports for federal awards and submit these on time.
Condition: The Center did not submit their financial statements to the Federal Audit Clearinghouse prior to the filing deadline. Criteria: Entities subject to single audit requirements are required to submit their financial statements within nine months of the fiscal year end or thirty days of the audit report date (whichever is sooner) in accordance with 2 CFR part 200 subpart F. Cause: The Center was not previously required to file with the Federal Audit Clearinghouse under 2 CFR part 200 subpart F §200.507(c)(1) because its prior grant expenditures did not exceed the $750,000 threshold. During the course of the Center’s annual audit, the determination was made that federal funds were spent in excess of $750,000. Upon this determination, the scope of the financial audit was expanded to ensure compliance with 2 CFR part 200 Subpart F. We concluded the single audit on November 10, 2023. Effect: Submission was not made timely. Recommendation: We recommend the Center closely monitor federal expenditures and ensure accurate reporting in the future to enable earlier determination if a filing with the Federal Audit Clearinghouse is required. In addition, we recommend starting the audit process in the spring to allow ample time to comply with the nine-month deadline. Views of Responsible Officials and Planned Corrective Actions: The Center agrees that the single audit report was not timely filed. As referenced above, the Center was previously under the $750,000 threshold for the single audit requirement, but completed and submitted the single audit report once the requirement was known. The Center has provided a corrective action plan to ensure timely filing going forward.
Timeliness of Single Audit Completion Type of Finding: Material Noncompliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with report submission for program-specific audit provisions. 2 CFR 200.507(c)(1) indicates that the audit must be completed and the required reporting submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a different period is specified in a program-specific audit guide. Condition: The Alliance did not submit the audit within the required timeframe. Questioned costs: None. Context: This is the first year the Alliance was required to have a single audit performed under Uniform Guidance. Cause: The Alliance was unaware of the requirements for timeliness of a single audit. Effect: The Alliance is not in compliance with the federal regulations. Repeat Finding: No Recommendation: We recommend the Alliance continuously monitor it’s expenditures of federal funds and begin the process of engaging an Auditor in a timely manner when the Alliance is aware that it will exceed the threshold triggering a single audit. Views of Responsible Officials: Management partially agrees. While agreeing that the Single Audit was not timely, the Alliance had been trying for a number of months to find an auditor. There is only one CPA on the entire island of American Samoa, and she doesn’t perform audits. There is also the issue of the territory being very remote, in fact, the audit firm performing the audit was several time zones away from American Samoa. Now that the Alliance has a relationship with an audit firm, any Single Audits required in the future will be performed in a timely manner.
Type of Finding: Material Noncompliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with report submission for program-specific audit provisions. 2 CFR 200.507(c)(1) indicates that the audit must be completed and the required reporting submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a different period is specified in a program-specific audit guide. Condition: The Coalition did not submit the audit within the required timeframe. Questioned costs: None. Context: This is the first year The Coalition was required to have a single audit performed under Uniform Guidance. Cause: The Coalition did not submit the annual financial report on time due to for single audit purposes due to various extraordinary factors. These included a super typhoon which hit the island early in the year, causing infrastructure and communications issues; big four firm auditors which were situated on the island left the market and could not perform the audit; and multiple other mid to small sized firms declining the job due to scheduling or capacity issues. Finally, they were able to find an auditor late in August, which delayed the submission even further. Effect: The Coalition is not in compliance with the federal regulations. Repeat Finding: No Recommendation: We recommend the Coalition continuously monitor its expenditures of federal funds and begin the process of engaging an Auditor in a timely manner when the Coalition is aware that it will exceed the threshold triggering a single audit. Views of Responsible Officials: Per management, they will make it a priority to be aware of all deadlines related to the submission of quarterly and annual reports for federal awards and submit these on time.
Finding 2022-008: Late Filing of Single Audit. Information on the federal program: Assistance Listing Number 17.268 - H1-B Job Training Grant, U.S. Department of Labor, Employment Training Administration. Award number: HG-34352-20-60-A-53. Compliance requirements: Reporting. Type of finding: Material Noncompliance, Material Weakness. Condition: The single audit was filed late. Effect or potential effect: Granting agencies and the general public are deprived of timely audit results. Cause: Books and records were not reconciled and made available for audit in a timely manner. Criteria: Uniform Guidance 2 CFR 200.507(c)(1) requires the audit to be completed and the reporting required to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Context: The completion of the audit was delayed due to improper policies and procedures, errors in the general ledger that were discovered during initial audit procedures, and unreconciled account balances. Questioned costs: None. Recommendations: We recommend management file their audit with the single audit clearing house timely. We recommend management implement policies and procedures to ensure the books and records are closed timely leaving enough time for the audit to be completed by the deadline. Views of the responsible officials and planned corrective actions: All federal grant revenue will be tracked with specific coding to ensure that AJAC Directors are aware of revenue accruals as they relate to the minimum thresholds for Single Audits and in a manner that allows for timely filing of future audits to the Single Audit Clearing House.
Finding 2022-008: Late Filing of Single Audit. Information on the federal program: Assistance Listing Number 17.268 - H1-B Job Training Grant, U.S. Department of Labor, Employment Training Administration. Award number: HG-34352-20-60-A-53. Compliance requirements: Reporting. Type of finding: Material Noncompliance, Material Weakness. Condition: The single audit was filed late. Effect or potential effect: Granting agencies and the general public are deprived of timely audit results. Cause: Books and records were not reconciled and made available for audit in a timely manner. Criteria: Uniform Guidance 2 CFR 200.507(c)(1) requires the audit to be completed and the reporting required to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Context: The completion of the audit was delayed due to improper policies and procedures, errors in the general ledger that were discovered during initial audit procedures, and unreconciled account balances. Questioned costs: None. Recommendations: We recommend management file their audit with the single audit clearing house timely. We recommend management implement policies and procedures to ensure the books and records are closed timely leaving enough time for the audit to be completed by the deadline. Views of the responsible officials and planned corrective actions: All federal grant revenue will be tracked with specific coding to ensure that AJAC Directors are aware of revenue accruals as they relate to the minimum thresholds for Single Audits and in a manner that allows for timely filing of future audits to the Single Audit Clearing House.
FINDING 2021-002 – Reporting, Non-compliance (Material Weakness) Federal program: U.S. Department of Health and Human Services – ALN 93.498, COVID-19 Provider Relief Fund (PRF) Criteria: 2 CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Entities may elect to calculate, and report lost revenue using one of three options. Entities electing to calculate lost revenue using Option i report net revenue from patient care for each quarter and each year 2019, 2020, and 2021. For entities electing to report lost revenues using Option ii, the difference between budgeted and actual patient care revenues, budgets must be approved before March 27, 2020 and cover each quarter during the period of availability. Entities electing to calculate lost revenues using another reasonable method should report using option iii. Section 200.507 of the Uniform Guidance states that the program-specific audit shall be completed, and reporting required submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit, unless a longer period is specified in a program_x0002_specific audit guide. Condition and Context: Internal controls surrounding the review process performed were not effective in detecting and correcting the proper reporting prior to submission. In the Hospital’s Period 1 reporting in the PRF reporting portal, the Hospital entered Total Other PRF Expenses of $2,072,205. Instead of then listing total other Coronavirus expenses that were not reimbursed by HRSA in the “Total Unreimbursed Expenses attributable to Coronavirus”, the Hospital listed the same $2,072,205 in the Unreimbursed Expenses section. The Hospital did not list all the pass-through grants found on the SEFA within the Other Assistance Received section of the PRF Report. Additionally, The Hospital did not complete and submit its audit report prior to the required deadline. Cause and Effect: Management review was not effective in detecting and correcting the errors before report submission; therefore the Hospital’s reporting in the PRF reporting portal double-counted the PRF reimbursed expenses as Coronavirus expenses that were not reimbursed and omitted listing other grants. Due to a delay in the compiling of records related to the audit, the Hospital was not in compliance with the reporting requirements. Questioned costs: None Repeat finding: No Recommendation: We recommend that internal controls be strengthened related to review of the quarterly lost revenue calculations and reporting in the PRF reporting portal. We recommend that the Hospital complete its audits and submit the required reports by the deadline. We recommend that the Hospital enter other assistance received by quarter during the period of availability on the PRF report. Views of responsible officials of the auditee: Management agrees with the finding and the auditors’ recommendation. See Management’s full response in the Corrective Action Plan at the end of this report.
FINDING 2021-002 – Reporting, Non-compliance (Material Weakness) Federal program: U.S. Department of Health and Human Services – ALN 93.498, COVID-19 Provider Relief Fund (PRF) Criteria: 2 CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Entities may elect to calculate, and report lost revenue using one of three options. Entities electing to calculate lost revenue using Option i report net revenue from patient care for each quarter and each year 2019, 2020, and 2021. For entities electing to report lost revenues using Option ii, the difference between budgeted and actual patient care revenues, budgets must be approved before March 27, 2020 and cover each quarter during the period of availability. Entities electing to calculate lost revenues using another reasonable method should report using option iii. Section 200.507 of the Uniform Guidance states that the program-specific audit shall be completed, and reporting required submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit, unless a longer period is specified in a program_x0002_specific audit guide. Condition and Context: Internal controls surrounding the review process performed were not effective in detecting and correcting the proper reporting prior to submission. In the Hospital’s Period 1 reporting in the PRF reporting portal, the Hospital entered Total Other PRF Expenses of $2,072,205. Instead of then listing total other Coronavirus expenses that were not reimbursed by HRSA in the “Total Unreimbursed Expenses attributable to Coronavirus”, the Hospital listed the same $2,072,205 in the Unreimbursed Expenses section. The Hospital did not list all the pass-through grants found on the SEFA within the Other Assistance Received section of the PRF Report. Additionally, The Hospital did not complete and submit its audit report prior to the required deadline. Cause and Effect: Management review was not effective in detecting and correcting the errors before report submission; therefore the Hospital’s reporting in the PRF reporting portal double-counted the PRF reimbursed expenses as Coronavirus expenses that were not reimbursed and omitted listing other grants. Due to a delay in the compiling of records related to the audit, the Hospital was not in compliance with the reporting requirements. Questioned costs: None Repeat finding: No Recommendation: We recommend that internal controls be strengthened related to review of the quarterly lost revenue calculations and reporting in the PRF reporting portal. We recommend that the Hospital complete its audits and submit the required reports by the deadline. We recommend that the Hospital enter other assistance received by quarter during the period of availability on the PRF report. Views of responsible officials of the auditee: Management agrees with the finding and the auditors’ recommendation. See Management’s full response in the Corrective Action Plan at the end of this report.
Finding SA 2021-001 Non-submission of Single Audit Package to Federal Clearing House Criteria: Title 2 of Code of Federal Regulations (CFR) § 200.507 requires Alma to electronically submit to the Federal Audit Clearinghouse (FAC) the Single Audit reporting package within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. For Alma, the deadline for submission is on March 31, 2022. The reporting package must consist of the data collection form, financial statement(s) of the Federal program, a summary schedule of prior audit findings, a corrective action plan, and the auditor's report(s). Condition: As of the audit date, Alma has not yet submitted to the FAC the required Single Audit reporting package for its audit for the year ended June 30, 2021. Cause/Effect: The audit of the financial statements for the fiscal year 2021 was significantly delayed thus, the required submission timeline for the single audit reporting package was not met. The non-submission is considered noncompliance with the federal guidelines which may result in penalties or unnecessary sanctions. Recommendation: We recommend that Alma implement corrective measures to address the procedural deficiencies and to assess and enhance its internal controls and procedures to ensure the timely and accurate submission of reports. Timely adherence to regulatory deadlines is crucial for maintaining compliance and ensuring transparency in financial reporting. View of Responsible Officials and Planned Corrective Actions: Despite Alma having a well-established accounting process in place to ensure the timely and accurate generation of financial reports, the delays in presenting schedules during this audit were influenced by unforeseen circumstances. Notably, scheduling conflicts arose due to the audit coinciding with either concurrent program reviews or audits mandated by the County, compelling Alma to prioritize accordingly. Alma is proactively adapting its infrastructure and operational framework to enhance efficiency continuously. Management expresses confidence in the effectiveness of the current plan and response, believing it will mitigate similar issues in future audits. Personnel Responsible and position: Lourdes Caracoza, CEO/President Wally Racela, Chief Financial Officer Anticipated Completion: December 31, 2023
Finding SA 2021-001 Non-submission of Single Audit Package to Federal Clearing House Criteria: Title 2 of Code of Federal Regulations (CFR) § 200.507 requires Alma to electronically submit to the Federal Audit Clearinghouse (FAC) the Single Audit reporting package within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. For Alma, the deadline for submission is on March 31, 2022. The reporting package must consist of the data collection form, financial statement(s) of the Federal program, a summary schedule of prior audit findings, a corrective action plan, and the auditor's report(s). Condition: As of the audit date, Alma has not yet submitted to the FAC the required Single Audit reporting package for its audit for the year ended June 30, 2021. Cause/Effect: The audit of the financial statements for the fiscal year 2021 was significantly delayed thus, the required submission timeline for the single audit reporting package was not met. The non-submission is considered noncompliance with the federal guidelines which may result in penalties or unnecessary sanctions. Recommendation: We recommend that Alma implement corrective measures to address the procedural deficiencies and to assess and enhance its internal controls and procedures to ensure the timely and accurate submission of reports. Timely adherence to regulatory deadlines is crucial for maintaining compliance and ensuring transparency in financial reporting. View of Responsible Officials and Planned Corrective Actions: Despite Alma having a well-established accounting process in place to ensure the timely and accurate generation of financial reports, the delays in presenting schedules during this audit were influenced by unforeseen circumstances. Notably, scheduling conflicts arose due to the audit coinciding with either concurrent program reviews or audits mandated by the County, compelling Alma to prioritize accordingly. Alma is proactively adapting its infrastructure and operational framework to enhance efficiency continuously. Management expresses confidence in the effectiveness of the current plan and response, believing it will mitigate similar issues in future audits. Personnel Responsible and position: Lourdes Caracoza, CEO/President Wally Racela, Chief Financial Officer Anticipated Completion: December 31, 2023
CFDA Number: 11.307 CFDA Title: Economic Adjustment Assistance Program Federal Agency: U.S. Department of Commerce Economic Development Administration Award Number: 04-79-07293 Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria: The regulations in 2 CFR section 200.501 (a) requires a single or program-specific audit for any year in which an entity expends $750,000 or more in federal awards. Per 2 CFR Section 200.501 (c), a program specific audit may be elected when an entity expends federal awards under only one federal program and the Program does not require a financial statement audit. In addition, in accordance with 2 CFR Section 200.507 for Program Specific Audits , the audit must be submitted within the earlier of 30 calendar days after receipt of the auditor's reports or 9 months after the end of the audit period. Condition: The Foundation expended greater than $750,000 under one federal program for the year ended December 31, 2020 but did not have a program-specific audit performed. Cause: The Foundation was not aware of the audit requirement since it does not receive federal funds on a recurring basis. Effect or Potential Effect: The Foundation's ability to obtain future funding for their projects could be impacted by not complying with the reporting requirements referred to above. Questioned Costs: None Context: The occurrence of not complying with the reporting requirements referred to above appears to be an isolated instance. Repeat Finding from Prior Year: No Recommendation: The Foundation should take appropriate action to ensure that all reporting requirements are known in the future and met on all of its potential future federal programs. Views of Responsible Officials and Corrective Action Planned: Management of the Foundation concurs with the audit finding. When management discovered the requirement had not been met, they immediately contacted an independent auditor to perform the program-specific audit to satisfy the reporting requirements.
CFDA Number: 11.307 CFDA Title: Economic Adjustment Assistance Program Federal Agency: U.S. Department of Commerce Economic Development Administration Award Number: 04-79-07293 Type of Finding: Noncompliance Compliance Requirements: Reporting Criteria: The regulations in 2 CFR section 200.501 (a) requires a single or program-specific audit for any year in which an entity expends $750,000 or more in federal awards. Per 2 CFR Section 200.501 (c), a program specific audit may be elected when an entity expends federal awards under only one federal program and the Program does not require a financial statement audit. In addition, in accordance with 2 CFR Section 200.507 for Program Specific Audits , the audit must be submitted within the earlier of 30 calendar days after receipt of the auditor's reports or 9 months after the end of the audit period. Condition: The Foundation expended greater than $750,000 under one federal program for the year ended December 31, 2020 but did not have a program-specific audit performed. Cause: The Foundation was not aware of the audit requirement since it does not receive federal funds on a recurring basis. Effect or Potential Effect: The Foundation's ability to obtain future funding for their projects could be impacted by not complying with the reporting requirements referred to above. Questioned Costs: None Context: The occurrence of not complying with the reporting requirements referred to above appears to be an isolated instance. Repeat Finding from Prior Year: No Recommendation: The Foundation should take appropriate action to ensure that all reporting requirements are known in the future and met on all of its potential future federal programs. Views of Responsible Officials and Corrective Action Planned: Management of the Foundation concurs with the audit finding. When management discovered the requirement had not been met, they immediately contacted an independent auditor to perform the program-specific audit to satisfy the reporting requirements.