Finding Text
Finding 2022-3 - Due to the expenditures noted in 2022-1 not being reported in the correct period, MSMA did not have an audit in accordance with the Uniform Guidance conducted for 2021. It appears that if these expenditures totaling $161,256 were reported in the correct period, MSMA would have exceeded the $750,000 threshold for an audit in accordance with the Uniform Guidance. Condition - Expenditures during 2021 totaling $161,256 were not recorded in the correct period and, therefore, an audit in accordance with the Uniform Guidance was not conducted or submitted to the Federal Audit Clearinghouse as MSMA believed they had not met the requirement. Criteria or Specific Requirement - The Uniform Guidance Section 200.501 requires non-Federal entities that expend more than $750,000 in Federal awards during their fiscal year to have a single audit. Effect - MSMA was not compliant with the Uniform Guidance requirement noted above for fiscal year 2021. Recommendation - We recommend that MSMA determine whether an audit in accordance with Uniform Guidance is required for 2021 and, if so, engage a firm to conduct the procedures. Management Response - Management agrees with the finding and will determine the necessity of having an audit in accordance with Uniform Guidance for 2021 performed and submitted to the appropriate parties in accordance with Uniform Guidance.