Finding 3679 (2021-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2023-12-07
Audit: 5752
Organization: Alice Ferguson Foundation, Inc. (MD)

AI Summary

  • Core Issue: The Foundation failed to submit its audited financial reports on time due to multiple delays, including staff turnover and changes in accounting firms.
  • Impacted Requirements: The Uniform Guidance mandates submission of audit reports within 30 days of receipt or 9 months after the fiscal year ends for entities expensing $750,000 or more in Federal awards.
  • Recommended Follow-Up: The Foundation should enhance financial close-out procedures and ensure timely completion of all required reports under the Federal award document.

Finding Text

The Uniform Guidance requires that entities that expense $750,000 or more in a year in Federal awards must submit their audited annual financial reports and data collection form to the Federal Audit Clearinghouse within thirty (30) days after receipt of the auditor’s report, or nine (9) months of the close of the auditee’s fiscal year. The fiscal year 2021 audit work did not commence until August 2023. Several issues impacted the late submission of the audit including internal senior accounting staff turnover, a change in external accounting firms, and unforeseeable delays with the previous audit firm, causing 2020 audit fieldwork delay. All of these issues were affected and compounded by the COVID-19 pandemic. We recommend the Foundation complete all reports required under the Federal award document and submit the reports in a timely manner. The Foundation should improve financial close-out procedures and obtain the audit required under the Uniform Guidance within nine (9) months of the fiscal year end.

Corrective Action Plan

The Foundation agrees that the matter noted resulted in significant delays with Uniform Guidance reporting. The Foundation will implement changes to improve the Foundation’s close-out procedures to allow it to report and obtain an audit in the timeframe required under the Uniform Guidance. A plan to rectify the submission is in place with preparations underway for the 2022 audit to commence in December of 2023 and with a projected completion date of January 2024. Thereafter, the Foundation will be on track for a timely audit and 990 filing with the 2022 audit.

Categories

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Other Findings in this Audit

  • 580121 2021-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.944 Natural Resource Stewardship $297,000
66.466 Chesapeake Bay Program-Overnight Meaningful Watershed Education Experiences for Fifth Grade Students $296,607
15.946 Cultural Resources Management $195,000
11.999 Marine Debris Program $6,878