FAC Explorer

Finding 33602 (2022-001)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-29
Audit: 28489
Organization: Army West Point Athletic Association, Inc. (NY)
Auditor: Pkf O'Connor Davies LLP

AI Summary

  • Core Issue: The U.S. Military Academy Athletic Programs failed to submit the Data Collection Form (DCF) and reporting package on time for the fiscal year ending June 30, 2022, due to delays from the previous year.
  • Impacted Requirements: This non-compliance with 2 CFR 200.512 reporting deadlines affects the audit process and could lead to further scrutiny.
  • Recommended Follow-Up: The Association should prioritize completing financial audits and ensure timely DCF submissions to meet future deadlines.

Finding Text

Finding: 2022-001 Agency: U.S. Department of Defense AL # and Title: ALN #12.432 ? U.S. Military Academy Athletic Programs at West Point Federal Award Identification # and Year: W911NF-17-2-0010 Year 2017-2022 Criteria: Per 2 CFR 200.512 Report Submission, (a) (1) the audit must be completed and the Data Collection Form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal holiday, the reporting package is due on the next business day. Condition: During the process of performing our audit, we noted that the Association?s Data Collection Form (?DCF?) and reporting package was not filed timely for fiscal year end June 30, 2022. Due to the delayed submission of the DCF and reporting package for the fiscal year end June 30, 2021, the Association informed AAA's Military Deputy Athletic Director that the DCF and reporting package for the fiscal year end June 30, 2022 would not be submitted until the prior year?s DCF and reporting package submission was completed. The DCF and reporting package for the fiscal year end June 30, 2021 was submitted in January 2023 or seven months after the fiscal year end June 30, 2022. The untimely delay in the prior year?s DCF and reporting package submission did not allow ample time for the completion and submission of the DCF and reporting package for the year end June 30, 2022. Questioned costs: None noted Effect: Per CFR 200.512, the auditor must report the following as an audit finding in a schedule of findings and questioned costs. The Association is not in compliance with the DCF and reporting package submission deadline. Cause: Lack of submission was due to extenuating circumstances of not completing the DCF and reporting package for the fiscal year end June 30, 2021 timely which impacted the ability to start and complete the DCF and reporting package for the fiscal year end June 30, 2022 within the reporting deadline. The cumulative effect of completing two DCF and reporting package submissions over the past twelve months can be attributable to the operational shutdowns related to the COVID-19 pandemic and a turnover of personnel in the Finance department during fiscal year 2021. This loss of staffing impacted the Association?s ability to facilitate completion of its financial statement audits and DCFs on a timely basis. Recommendation: We recommend that the Association monitor compliance and prioritize completing its financial statement audit to facilitate the timely filing of the DCF and the reporting package by its due date. Management?s Corrective Action Plan: Management has indicated that they have put certain procedures in place as detailed in the Corrective Action Plan located in Appendix A.

Corrective Action Plan

Audit Finding: Pursuant to 2 CFR 200.512 Report submission, Army West Point Athletic Association Inc. (?AWPAA?) did not submit its FY2022 data collection form and reporting package by the earlier of 30 calendar days after receipt of the auditor' report(s), or nine months after the end of the audit period. Root Cause Analysis: In July 2021, the Business Office experienced turnover as staff members departed for new employment opportunities. These departures were higher compensation, more favorable work environment (hybrid/full remote arrangements), as well as for profit and nonprofit opportunities outside of college athletics. The COVID-19 global pandemic also contributed to these departures as the organization had to reduce head count and execute voluntary salary furloughs over the course of four months. Even though the AWPAA COVID-19 countermeasures were temporary, the entire Business Office staff departed over a thirty--day period. In July 2022, the Business Office was fully staffed. Unfortunately, the FY2021 data collection form and reporting package were not completed and submitted until January 2023 or seven months after the end of FY2022. The cumulative effect of submitting the FY2021 data collection form and reporting package late caused a delay in AWPAA?s ability to complete FY2022?s submission by the required deadline. Corrective Action Plan: To complete the FY2022 financial statement audit on/by June 30, 2023. Furthermore, the Business Office will accelerate its financial statement and single audit preparations and engagements to submit its future data collection form and reporting package in a timely manner. Estimated Completion Date: Submit FY2022 data collection form and reporting package by June 30, 2023. Submit FY2023 data collection form and reporting package by November 30, 2023. Point of Contact: Wen-Kang Chang, Chief Financial Officer

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
12.432 U.s. Military Academy Athletic Programs at West Point $13.24M