FAC Explorer

Finding 1215173 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-05-20
Audit: 401844
Organization: The Geological Society of America (CO)
Auditor: BROCK AND COMPANY CPAS PC

AI Summary

  • Core Issue: The June 30, 2025 audit report was submitted late, violating federal reporting requirements.
  • Impacted Requirements: Compliance with 2 CFR Part 200 mandates timely submission to avoid funding delays and maintain low-risk status.
  • Recommended Follow-Up: Engage experienced consultants to ensure timely reporting and address staffing and software challenges.

Finding Text

Finding 2025-001: Reporting - Late Submission Information on the Federal Program: Assistance Listing Number 47.050-National Science Foundation - Research and Development Cluster Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance or 2 CFR Part 200), Subpart F , requires single audit reporting to be submitted to the Federal Audit Clearinghouse within 30 days of receiving the completed reports or nine months after the entity's fiscal year end, whichever comes first. Condition: The June 30, 2025 single audit report was not submitted to the Federal Audit Clearinghouse on a timely basis. Cause: Insufficient staffing and an accounting software conversion caused delays to the start of the audit. Effect: Failure to submit the necessary audit report on a timely basis can lead to delayed or suspended funding and The Geological Society of America, Inc. will not be classified as a low-risk auditee in future years. Questioned Costs: None Context: The Geological Society of America, Inc. has experienced significant delays in the conversion of its accounting system. The noncompliance is isolated to June 30, 2025 as management has complied with other reporting criteria on its federal awards. Recommendation: Management should contract with experienced consultants to support timely reporting of all federal awards when entity personnel are unable to meet the criteria. Respnsible Official's Response: Management concurs with the audit finding. A corrective action plan has been developed and is included to address the identified deficiency.

Corrective Action Plan

Finding: 2025-001 - Late Submission of Reporting Package to the Federal Audit Clearinghouse Compliance Requirement: Reporting – 2 CFR 200.512(a) Condition: The reporting package for the year ended June 30, 2025 was not submitted to the Federal Audit Clearinghouse by the required deadline of March 31, 2026. Views of Responsible Officials: Management acknowledges that the reporting package was not submitted within the required timeframe and recognizes the importance of timely compliance with federal reporting requirements. Corrective Action Plan • Implementation of Formal Audit Timeline: Management will establish a formal annual audit timeline that includes key milestones for audit preparation, fieldwork, report issuance, and submission to the Federal Audit Clearinghouse. • Assignment of Responsibility: A specific individual will be designated as responsible for monitoring the audit timeline and ensuring timely submission. • Enhanced Coordination with External Auditors: Management will engage with the external auditors earlier in the fiscal year and hold regular status meetings to avoid delays. • Internal Preparedness Improvements: The organization will implement a prepared-by-client (PBC) checklist with internal deadlines. • Pre-Submission Review Process: Management will implement a final review step to confirm readiness for submission immediately upon receipt of the auditor’s reports. Anticipated Completion Date: These corrective actions will be implemented for the fiscal year ending June 30, 2026 audit cycle, with full compliance expected by the applicable Federal Audit Clearinghouse submission deadline. Responsible Party: Finance Director

Categories

Allowable Costs / Cost Principles Reporting

Programs in Audit

ALN Program Name Expenditures
15.931 YOUTH AND VETERAN ORGANIZATIONS CONSERVATION ACTIVITIES $585,026
47.050 GEOSCIENCES $361,241
15.808 U.S. GEOLOGICAL SURVEY RESEARCH AND DATA COLLECTION $44,206