Finding 1159708 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-10-02

AI Summary

  • Core Issue: NAMC failed to complete its required annual audit and submit necessary reports on time.
  • Impacted Requirements: Non-compliance with 2 CFR regulations regarding audits for entities expending $750,000 or more in federal awards.
  • Recommended Follow-up: NAMC should establish policies to ensure future compliance with audit requirements and timely report submissions.

Finding Text

Criteria: 2 CFR requires a non-federal entity that expends $750,000 or more in federal awards during its fiscal year must undergo an audit in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and submit their audited annual financial reports and the data collection form to the Federal Audit Clearinghouse within thirty (30) days after receipt of the auditors’ report, or nine (9) months of the close of the auditee's fiscal year. Condition: NAMC did not undergo the annual audit requirement in accordance with the Uniform Guidance and submit the annual audited financial statements and the data collection form to the Federal Audit Clearinghouse within 9 months after year-end as required by the Uniform Guidance. Cause: Due to turnover in key finance positions, NAMC did not undergo the required audit. Effect: NAMC is not in compliance with applicable federal regulations. Questioned Costs: None Auditors’ Recommendation: NAMC should implement policies and procedures to ensure compliance with all audit requirements and timely filing of required reports. Views of Responsible Officials: NAMC has appropriately staffed the open finance department roles and completed its 2023 audit and reporting requirements as of September 2025.

Corrective Action Plan

Niagara Area Management Corporation is recruiting a new Chief Financial Officer and has a new Director of Finance. NAMC has also engaged a new public accounting firm. It is NAMC policy to submit the annual audited financial statements and the data collection form to the Federal Audit Clearinghouse within 9 months after year-end.

Categories

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.23M
16.575 Crime Victim Assistance $294,126
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated Exchanges $212,636
93.778 Medical Assistance Program $154,433
10.558 Child and Adult Care Food Program $18,572