Finding 1164572 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-12-11
Audit: 374156
Organization: Strategic Capacity Group, Inc. (VA)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The Data Collection Form for 2023 was submitted late, missing the September 30, 2024 deadline.
  • Impacted Requirements: This finding violates the Uniform Guidance for timely submission of audit-related documents.
  • Recommended Follow-Up: Management should enhance processes to ensure compliance with all federal filing requirements moving forward.

Finding Text

Finding No. 2023-001: Late Filing of Data Collection Form – Compliance Finding – All Federal Awards Criteria In accordance with the Uniform Guidance, the audit package and the Data Collection Form must be submitted within 30 days after receipt of the auditors’ report or nine months after the end of the fiscal year, whichever comes first. Condition and Context The Data Collection Form for the year ended December 31, 2023 was not submitted to the Federal Audit Clearinghouse by the September 30, 2024 deadline. Cause SCG was unable to meet the September 30, 2024 deadline for its 2023 data collection form submission due to an appeal stemming from differing interpretations of guidelines related to the calculation and application of the negotiated indirect cost rate between SCG and the U.S. Department of the Interior (DOI), the agency contracted to administer the U.S. Department of State’s Negotiated Indirect Cost Rate Agreement (NICRA). The Department of State issued the Notice of Determination—the response to SCG’s appeal—on September 24, 2024, just six days before the data collection form submission deadline. The timing of the Department of State’s Determination did not allow sufficient time for SCG to record the related adjustments or to revise audit schedules. Effect Management was not in compliance with the requirements of the Uniform Guidance. Questioned Costs None. Repeat Finding No. Recommendation We recommend that management continue its efforts to ensure that all filing requirements under federal awards are met. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Corrective Action Plan

STRATEGIC CAPACITY GROUP CORRECTIVE ACTION PLAN For the Year Ended December 31, 2023 U.S. DEPARTMENT OF STATE Strategic Capacity Group (SCG) submits the following corrective action plan for the year ended December 31, 2023. Independent Public Accounting Firm: CBIZ CPAs P.C. 1899 L Street NW, Suite 850 Washington, DC 20036 Audit Period: The finding from the December 31, 2023 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDING - FINANCIAL STATEMENT FINDINGS Finding No. 2023-001: Late Filing of Data Collection Form – Compliance Finding – All Federal Awards Criteria In accordance with the Uniform Guidance, the audit package and the Data Collection Form must be submitted within 30 days after receipt of the auditors’ report or nine months after the end of the fiscal year, whichever comes first. Condition and Context The Data Collection Form for the year ended December 31, 2023 was not submitted to the Federal Audit Clearinghouse by the September 30, 2024 deadline. Recommendation It was recommended that management continue its efforts to ensure that all filing requirements under federal awards are met. Views of Responsible Officials and Planned Corrective Actions SCG has consistently ensured that all audits preceding fiscal year 2023 were completed by the annual September 30 deadline. As this was a singular occurrence arising from SCG’s appeal to the U.S. Department of State on December 20, 2023 concerning differing interpretations surrounding the configuration and application of the Negotiated Indirect Cost Rate Agreement (NICRA), SCG believes no corrective action is warranted. SCG received a response to its appeal only on September 24, 2024. Had it not been for this unique circumstance and the timing of the U.S. Department of State’s appeal determination, SCG’s 2023 audit would have been completed and submitted by the required deadline of September 30, 2024. Contact Person Responsible for Corrective Action: Querine Hanlon, President _______________ If the US Department of State has questions regarding this plan, please call Querine Hanlon, President, (202) 746-7317. Sincerely, Querine Hanlon President Strategic Capacity Group

Categories

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Other Findings in this Audit

  • 1164569 2023-001
    Material Weakness Repeat
  • 1164570 2023-001
    Material Weakness Repeat
  • 1164571 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
19.703 CRIMINAL JUSTICE SYSTEMS $7.90M
19.301 THE SECRETARY'S OFFICE OF THE GLOBAL PARTNERSHIP INITIATIVE (S/GPI) GRANT PROGRAMS $859,771
19.705 TRANS-NATIONAL CRIME $519,943
19.704 COUNTER NARCOTICS $311,553