Finding Text
Information on the Federal Program: Federal Agency: U.S. Department Agriculture Program Name: Intermediary Relending Program AL: 10.767 Federal Award Year: 2025 Federal Agency: U.S. Department of Commerce Program Name: Economic Development Administration AL: 11.307 Federal Award Year: 2025 Criteria: Form RD 4274-4, Section 5.1, requires KVCOG to submit annual audit reports within 90 days following the year-end. Audits must conform to the requirements of 7 CFR 1948.118(b)(4). 2 CFR §200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (FAC) no later than 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period, whichever is earlier. Condition Found: For the year ended June 30, 2024, KVCOG failed to submit the annual audited report within 90 days following year-end. Further, KVCOG failed to submit the data collection form, and the reporting package within nine months after year-end. Context: KVCOG did not have effective internal controls to help ensure timely and accurate preparation of financial information, including account reconciliations. As a result, management did not have the information necessary to complete the FAC filing within the timeframe required by 2 CFR §200.512(a)(1). Questioned Costs: None noted. Cause and Effect: The late submission of the Single Audit report to the FAC creates noncompliance with federal reporting requirements and increases KVCOG’s risk of administrative actions by federal awarding agencies. This may result in delayed acceptance of federal awards, imposition of grant conditions, or restrictions on access to federal funds until the report is submitted and accepted. Identification as a Report Finding, if applicable: N/A Recommendation: KVCOG should implement procedures to ensure the Single Audit reporting package is prepared, reviewed, and submitted to the FAC within required timeframes, including monitoring of statutory deadlines Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan on page 58 Responsible party: Diana Rafuse, Finance Director