Finding 1160392 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-10-14

AI Summary

  • Core Issue: The Chamber missed the deadline for submitting the December 31, 2023 Single Audit reporting package, which is a serious compliance failure.
  • Impacted Requirements: This violation affects the Chamber's eligibility for future federal awards and may lead to increased monitoring by federal agencies.
  • Recommended Follow-Up: Management should enhance internal controls and conduct regular reviews and reconciliations to ensure timely financial reporting and compliance.

Finding Text

Finding 2023-001: Material Weakness - Untimely Audit Submission in Accordance with OMB Uniform Guidance Federal Grantor: All Federal Programs Compliance Requirement: Reporting Condition: The Chamber did not electronically submit their December 31, 2023 Single Audit reporting package (Single Audit Report, Data Collection Form, Status of Prior Year Findings, and a Corrective Action Plan) within the required time period. Criteria: The Chamber was required to submit its December 31, 2023 audited financial statements and single audit reporting package to the federal audit clearinghouse no later than September 30, 2024, 9 months after the fiscal year-end (2 Code of Federal Regulations 200.512(a)). Effect: Federal awarding agencies may deny the Chamber future federal awards or subject the Chamber to additional monitoring requirements. Cause: The Chamber was not able to complete its single audit by the reporting deadline due to staff shortages. Recommendation: We recommended that management strengthen the related internal controls over monitoring of its year-end reconciliation of its financial statements to ensure that the general ledger accounts reflect proper and complete activity consistent with their basis of accounting. We believe that reviews, evaluations of transactions, and reconciliations of accounts should be performed on a regular basis during the year. This would expedite the year-end closing process and ensure compliance with the audit report submission requirements of OMB Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The Chamber agrees with the finding and is in the process of implementing processes to ensure timely close-out of the books.

Corrective Action Plan

Finding Reference Number: 2023-001 Description of Finding: Untimely audit submission in accordance with OMB Uniform Guidance Statement of Concurrence or Nonconcurrence: The California Asian Pacific Chamber of Commerce (CalAsian) agrees with the finding. Corrective Action: CalAsian understands the seriousness of this deficiency and the need for strict adherence to timely audit submissions per the OMB Uniform Guidance. Additional staff have been hired to assist in accounting processes, including a Controller to review all accounting processes and procedures with the Director of Finance, implement best practice recommendations and month-end closing schedule. We also understand these findings are repetitive from the 2021 and 2022 audits; however, due to catch-up of the prior year audits, we were unable to address these issues prior to completion of the 2023 audit. This delay was caused by a change in auditors as our previous auditor did not have the capacity to retain us as clients due to staff shortages related to COVID. An outside finance and accounting firm has been hired to provide additional support to bring the audits current by March 2026. This issue will be further mitigated in subsequent periods with the implementation of the new accounting system, which was implemented effective January 2025. Monthly reviews of the 2024 financial data, including reconciliations of all accounts were performed and reviewed by the Controller and Director of Finance. This will allow us to provide the 2024 financial data to the auditors in a more timely manner to ensure completion and submission of the audit per the OMB guidance. Continued compliance with these new procedures will help to mitigate the risk of untimely submissions in future years. Name of Contact Person: Ryan Fong, Director of Finance, 916-446-7883, rfong@calasiancc.org Pat Fong Kushida, President & CEO, 916-446-7883, patfongkushida@calasiancc.org Projected Completion Date: March 2026

Categories

Reporting Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 1160393 2023-002
    Material Weakness Repeat
  • 1160394 2023-003
    Material Weakness Repeat
  • 1160395 2023-004
    Material Weakness Repeat
  • 1160396 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
59.037 Small Business Development Centers $167,500
11.034 2023 Mbda Capital Readiness Program $93,359
11.805 Mbda Business Center $31,163
20.910 Assistance to Small and Disadvantaged Businesses $15,000