Core Issue: The organization failed to complete required audits on time for multiple federal programs.
Impacted Requirements: Non-Federal entities must conduct audits if they spend over $750,000 in federal awards, as per Uniform Guidance.
Recommended Follow-Up: Establish clear written policies and procedures to ensure timely audits and compliance with procurement standards.
Finding Text
CFDA 17.277 Program Title: EKCEP CFDA No. 15.252 Program Title: Abandon Mine Lands Pilot Project CFDA No. 23.001 Program Title: EKAMI Workforce Development Program Failure to have audit completed timely. The Uniform Guidance requires non-Federal entities that expend $750,000 or more a year in Federal awards to have an audit conducted in accordance with the Uniform Guidance. And the contract requires an annual audit be performed. Personnel were not aware of the requirement that an audit was to be performed. Policies and procedures; and internal controls were lacking that would have resulted in having audit completed timely. Failure to meet federal audit requirements. Written policies and procedures should be put in place to negate repeating finding. Policies should be put in place that meet the requirement for compliance with procurement standards (24 CFR Part 85) The Organization agrees with the finding and the recommended procedures have been implemented.
Corrective Action Plan
We concur with the recommendation, and the organization is actively working to get the audits current. The info1mation to do the audit of the financial statements for 2022 will be submitted by January 31, 2026. The information for audits of the subsequent years' financial statements will be submitted within 30 days of the completion of the prior year audit The organization expects to be cmTent on the audits by December 31, 2027.
Categories
Procurement, Suspension & DebarmentMatching / Level of Effort / EarmarkingInternal Control / Segregation of Duties