Finding 1177928 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-03-11
Audit: 391291
Organization: Nesivos Bais Yaakov (NY)

AI Summary

  • Core Issue: The Organization failed to submit the reporting package to the Federal Audit Clearinghouse by the required deadline, resulting in noncompliance with 2 CFR 200.512(a).
  • Impacted Requirements: Timely submission is essential for federal oversight and monitoring; the Organization missed the nine-month deadline by submitting on March 9, 2026, instead of by May 31, 2025.
  • Recommended Follow-Up: Management should enhance understanding of federal expenditure thresholds and prioritize compliance to avoid future noncompliance and potential sanctions.

Finding Text

Criteria Per 2 CFR 200.512(a), auditees must submit the data collection form and the reporting package to the Federal Audit Clearinghouse (FAC) by the earlier of 30 calendar days after receipt of the auditor’s reports, or nine months after the end of the auditee’s fiscal year end. Timely submission is a condition of the federal awards and is necessary to allow federal agencies and pass through entities to use the audit information for oversight and monitoring purposes. Condition For the fiscal year ended August 31, 2024, the Organization received the auditor’s reports on March 9, 2026. The Organization’s reporting package, including the data collection form, will be submitted to the FAC on March 9, 2026, which is after the required nine month deadline of May 31, 2025. No extension or other filing relief from the federal government was documented. Cause Management believed that the Organization’s total federal expenditures for the year were below the threshold that requires a single audit and related submission to the Federal Audit Clearinghouse. As a result, management did not prioritize monitoring or meeting the FAC reporting deadline because they did not understand that the threshold had been exceeded and that a timely FAC filing was required. Effect Failure to submit the reporting package to the FAC by the required deadline constitutes noncompliance with 2 CFR 200.512(a). This noncompliance could impair federal and pass through agencies’ ability to use the audit information for oversight in a timely manner and could subject the Organization to additional scrutiny or potential sanctions by federal agencies, including restrictions on future funding.

Corrective Action Plan

The Organization has developed and implemented written procedures to ensure timely submission of the data collection form and reporting package to the FAC. These procedures: (1) assign primary responsibility for the FAC submission to the Director; (2) require preparation of the FAC submission checklist immediately upon receipt of the draft auditor’s reports; and (3) incorporate the FAC deadline into the Organization’s annual compliance calendar. Training on the new procedures was provided to key finance staff.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $486,789
10.558 CHILD AND ADULT CARE FOOD PROGRAM $248,994
10.553 SCHOOL BREAKFAST PROGRAM $235,528