Finding Text
Finding 2024-001: Condition – The Organization did not have an audit performed timely of its major federal award program and did not timely submit a Data Collection Form to the Federal Audit Clearinghouse for the year ended December 31, 2024. Criteria – As required under the Uniform Guidance, organizations that spend more than $750,000 of federal funds are required to have an audit in accordance with the Uniform Guidance and submit a Data Collection Form through the Federal Audit Clearinghouse within the earlier of nine months after year end or 30 days after its audit opinion date. Cause – The audit under the Uniform Guidance for the year ended December 31, 2024 was not completed timely due an inadvertent and accidental oversight in connection with the implementation of the new provisions of the 2024 revision which increased the audit threshold from $750,000 to $1,000,000 of federal expenditures. Such oversight was due to a miscommunication as to the effective date of such 2024 revisions, which the Organization initially believed to be applicable for its 2024 calendar year. Effect – The Organization did not comply with reporting regulations required by the Uniform Guidance. Recommendation – We recommend the Organization enact policies and procedures to ensure that the Data Collection Form be completed and submitted to the Federal Audit Clearinghouse with the required timeframe specified by the Uniform Guidance. Management’s Response – Management completed the required audit and submitted its Data Collection Form to the Federal Audit Clearinghouse immediately upon identifying the compliance deficiency. Management has initiated policies and procedures to ensure that the required reporting regarding federal expenditures is completed in accordance with the Uniform Guidance.