Finding 375631 (2022-001)

Federal Agency: U.S. Department of Commerce and U.S. Department of the Treasury Federal Program: Economic Development Cluster and Coronavirus Relief Fund, respectively Assistance Listing Number: 11.307 and 21.019, respectively Grant Number: 07 7907702 (11.307) and SLT2049 (21.019), respectively Award Period: 2022 and 2022, respectively Type of Finding: Material weakness in internal control over compliance and material noncompliance Criteria: The Organization did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after receipt of the audit report, or nine months plus any extensions after the end of the audit report, (i.e. the FAC Report was not submitted timely.) Condition and Context: The Uniform Guidance requires that the reporting package will be submitted within the earlier of nine months plus any extensions after year end or 30 days after the report issuance in accordance with the provisions of 2 CFR part 200, subpart F, section 200.512. Cause: Due to turnover of the Organization’s contract accountant, the Organization was unable to have their annual audit completed within the required timeframe, and subsequently were late in submission of the FAC report. Effect: The Organization was not in compliance with Uniform Guidance reporting requirements. Questioned Costs: None. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: The Organization needs to work on getting financial information more timely (i.e. submit the reporting package within the guidelines of Uniform Guidance). Management Response: Management agrees with this finding, see Corrective Action Plan.