Finding 401071 (2022-002)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2024-06-18

AI Summary

  • Core Issue: The Organization missed the June 30, 2023 deadline for submitting its federal single audit to NSF.
  • Impacted Requirements: This violates 45 CFR §75.501, which mandates timely submission of audit reports.
  • Recommended Follow-Up: Review and improve financial reporting policies to ensure future audits are submitted on time.

Finding Text

Finding 2022-002: Late Audit Reporting Condition: The Organization did not complete and submit its federal single audit of its federal award from National Science Foundation ("NSF"), or their designee, by the due date of June 30, 2023. Criteria: 45 CFR §75.501 requires organizations that complete a Generally Accepted Government Auditing Standards Financial Audit under 45 CFR §75.216 to submit a financial related audit in accordance with Government Auditing Standards by the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause: The federal audit was not completed until June 2024 as management did not timely engage an audit firm to meet filing requirements. Effect: May impact future funding from NSF. Recommendation: We recommend the Organization continue to review policies and procedures over financial reporting in order to ensure future audits are filed timely with NSF, or its designee. Questioned costs: None Views of responsible officials: Management of the Organization agrees with the finding. The Organization will ensure future audits are filed timely with NSF, or its designee. The Organization's corrective action plan is included at the end of this report.

Corrective Action Plan

Finding 2022-002: Late Audit Reporting: The Organization did not complete and submit its federal single audit of its federal award from National Science Foundation, or their designee, by the due date of June 30, 2023. Name of Contact Person: Charles Xie, Chief Executive Officer email: charles@intofuture.org Corrective Action Plan: The Organization underwent a single audit as required by Uniform Guidance for the year that ended September 30, 2022. The Organization designated an individual at the Organization to implement procedures and monitor the timely filing of the single audit. Part of the reason for the delay was that the Organization had never been subjected to a single audit before, and thus this was the first time they needed to produce supporting documentation. As the Organization was established in June 2020, it was only subject to a regular audit for the year ended September 30, 2021. At that time, the Organization had signed a three-year audit contract with Treeful Damaso Aniceto, Inc. However, when it came the time to audit the year ended September 30, 2022, the audit firm unexpectedly notified the Organization that they no longer performed single audits. As a result, the Organization needed to seek a new audit firm. But many firms that the Organization contacted were already overbooked. It was not until late 2023 that the Organization received quotes from several firms, of which the current auditor was chosen through a process of careful evaluation and comparison. From now on, the Organization will monitor these due dates in future single audits to ensure timely completion. Anticipated Completion Date: Immediately

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
47.046 Stem Education (formerly Education and Human Resources) $22,445