Finding 36698 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-29
Audit: 36926
Organization: African Development Center (MN)

AI Summary

  • Core Issue: The organization submitted two quarterly performance reports late, violating federal requirements for timely reporting.
  • Impacted Requirements: Federal regulations mandate that performance reports be submitted within 30 days after the reporting period, as outlined in 2 CFR 200.329(c).
  • Recommended Follow-Up: Management should establish procedures to ensure all required reports are completed and submitted on time to maintain compliance.

Finding Text

2022-003 ? Performance Reporting Federal Agency: U.S. Small Business Administration Federal Program: Microloan Program Assistance Listing Numbers: 59.046 Federal Award Identification Number and Year: ? SBAOCAML210221 ? 2021 ? SBAOCAML220344 ? 2022 Award Period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Compliance - Other Matter Criteria or Specific Requirement: Federal regulations require submission of performance reports at an interval required by the federal awarding agency. Those reports submitted quarterly must be due no later than 30 calendar days after the reporting period. These requirements are outlined in 2 CFR 200.329(c) Monitoring and reporting program performance. Condition: During our testing, we tested two quarterly performance reports and it was noted both were submitted after the required due date outlined in the grant agreement. Questioned Costs: None Context: During our testing, it was noted the Organization did not have proper procedures in place for ensuring timely submission of the quarterly performance reports as required in the federal fund notice of awards. Cause: Management did not have a system in place to ensure the completion and submission of the required performance reporting by the specified due date. Effect: By submitting untimely performance reports, the Organization is not in compliance with the terms and conditions of the award. This did not result in any disallowed costs. Repeat Finding: No Recommendation: We recommend management develop procedures to ensure the required reporting is completed within the timeline allowed by the granting agency. Views of Responsible Officials: Management agrees with finding.

Corrective Action Plan

2022-003 Performance Reporting Microloan Program ? Assistance Listing No. 59.046 Recommendation: We recommend management develop procedures to ensure the required reporting is completed within the timeline allowed by the granting agency. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: New staff has been trained and the reporting calendar updated. CFO/COO to monitor and submit in a timely manner. Name(s) of the contact person(s) responsible for corrective action: Nasibu Sareva (CEO) and Felicia Ravelomanantsoa (CFO/COO) Planned completion date for corrective action plan: 12/31/2023

Categories

Reporting Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 613140 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.012 7(a) Loan Guarantees $1.35M
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.14M
59.046 Microloan Program $898,578
21.020 Community Development Financial Institutions Program $483,313
21.027 Coronavirus State and Local Fiscal Recovery Funds $25,000
14.169 Housing Counseling Assistance Program $19,935
14.218 Community Development Block Grants/entitlement Grants $1,876