Finding 1157047 (2024-002)

Finding Number: 2024-002; Instance of Non-compliance: Reporting; Assistance Listing # 11.619; Questioned Cost: $0 Criteria: According to 2 CFR 200.501, a non-federal entity that expends $750,000 or more in federal awards in a fiscal year is required to have a Single Audit conducted and submit the reporting package to the Federal Audit Clearinghouse within nine months after the end of the entity’s fiscal year. Condition: The Organization expended more than $750,000 in federal awards during the fiscal years ended December 31, 2022 and December 31, 2023, but did not have Single Audits performed for those periods. The Organization engaged us only to perform a Single Audit for the year ended December 31, 2024. Context: This is a condition identified based on inquiries with Management and review of grant agreements. Cause: Management did not adequately monitor the federal audit requirements and did not engage auditors timely to conduct Single Audits for the prior two fiscal years. Effect: The Organization was not in compliance with 2 CFR 200.501, and did not submit required reporting packages to the Federal Audit Clearinghouse for fiscal years 2022 and 2023. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Organization establish procedures to monitor annual federal award expenditures and ensure timely compliance with Single Audit requirements, including engaging auditors and submitting required reporting packages within regulatory deadlines. The Organization should also communicate with its federal awarding agencies to determine appropriate corrective actions related to the missed audits. Views of Responsible Officials: The Organization concurs with the finding. Management is committed to strengthening compliance oversight and ensuring that all future Single Audit requirements are met in a timely manner. The Organization has developed corrective actions plan and is in the process of implementing corrective actions based on auditors’ recommendations. Responsible Official: Nikel Davis, Director of Accounting Anticipated Completion Date: October 15, 2025