Finding 375831 (2021-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-03-13

AI Summary

  • Core Issue: The Chamber missed the deadline for submitting its December 31, 2021 Single Audit reporting package, which is a serious compliance failure.
  • Impacted Requirements: This violation affects the Chamber's eligibility for future federal awards and may lead to increased scrutiny from federal agencies.
  • Recommended Follow-Up: Management should enhance internal controls and regularly monitor financial reconciliations to ensure timely audit submissions in the future.

Finding Text

Finding 2021-001: Material Weakness - Untimely Audit Submission in Accordance with OMB Uniform Guidance Federal Grantor: All Federal Programs Compliance Requirement: Reporting Condition: The Chamber did not electronically submit their December 31, 2021 Single Audit reporting package (Single Audit Report, Data Collection Form, Status of Prior Year Findings, and a Corrective Action Plan) within the required time period. Criteria: The Chamber was required to submit its December 31, 2021 audited financial statements and single audit reporting package to the federal audit clearinghouse no later than September 30, 2022, 9 months after the fiscal year-end (2 Code of Federal Regulations 200.512(a)). Effect: Federal awarding agencies may deny the Chamber future federal awards or subject the Chamber to additional monitoring requirements. Cause: The Chamber was not able to complete its single audit by the reporting deadline due to staff shortages. Recommendation: We recommended that management strengthen the related internal controls over monitoring of its year-end reconciliation of its financial statements to ensure that the general ledger accounts reflect proper and complete activity consistent with their basis of accounting. We believe that reviews, evaluations of transactions, and reconciliations of accounts should be performed on a regular basis during the year. This would expedite the year-end closing process and ensure compliance with the audit report submission requirements of OMB Uniform Guidance. Management’s Response: Management’s response to the findings is discussed in the Corrective Action Plan.

Corrective Action Plan

Description of Finding: Untimely audit submission in accordance with OMB Uniform Guidance Statement of Concurrence or Nonconcurrence: The California Asian Pacific Chamber of Commerce (CalAsian) agrees with the finding. Corrective Action: CalAsian understands the seriousness of this deficiency and the need for strict adherence to timely audit submissions per the OMB Uniform Guidance. Additional staff have been hired to assist in accounting processes; and an Interim Controller has been hired to review all accounting processes and procedures with the Director of Finance, provide best practice recommendations and month-end closing schedule. Monthly reviews of the financial data, including reconciliations of all accounts will be performed and reviewed by the Controller and Director of Finance. Implementation of these recommendations will help to mitigate the risk of untimely submissions in future years. Name of Contact Person: Ryan Fong, Director of Finance, 916-446-7883, rfong@calasiancc.org Pat Fong Kushida, President & CEO, 916-446-7883, patfongkushida@calasiancc.org Projected Completion Date: July 2024

Categories

Reporting Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 375832 2021-002
    Material Weakness
  • 375833 2021-003
    Material Weakness
  • 375834 2021-004
    Significant Deficiency
  • 952273 2021-001
    Material Weakness
  • 952274 2021-002
    Material Weakness
  • 952275 2021-003
    Material Weakness
  • 952276 2021-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
11.802 Minority Business Resource Development $352,881
20.910 Assistance to Small and Disadvantaged Businesses $133,758
11.805 Mbda Business Center $107,993