Finding 504836 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-11-07
Audit: 327570
Organization: Life Asset, Inc. (DC)

AI Summary

  • Core Issue: Data Collection Forms for audits from 2021 to 2023 were not submitted on time.
  • Impacted Requirements: Failure to comply with 2 CFR §200.512(a)(1) regarding timely filing can lead to funding restrictions.
  • Recommended Follow-up: Implement internal controls to ensure timely submission of the Data Collection Forms and reporting packages.

Finding Text

Finding 2023-001: Submissions of Data Collection Forms Federal Programs: All Criteria: As stated in 2 CFR §200.303, the non-Federal entity (i.e. the Organization) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to 2 CFR §200.512(a)(1) the audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Condition: The Data Collection Forms for each of the audits for the years ended December 31, 2021, 2022 and 2023 were not filed timely in accordance with the requirements under Uniform Guidance. Cause: The Organization did not have adequate controls in place to allow the Data Collection Form to be filed timely. Effect or Potential Effect: Delinquent data collection forms may result in action by funders such as 1) draw-down restrictions, 2) reimbursable draw-down restrictions, 3) withholding a percentage of Federal funds, 4) suspending Federal funds, or 5) termination of the award. Questioned Costs: None. Context: The past three years of Data Collection Forms have not been filed timely. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend the Organization establish an internal control procedure to ensure the required data collection form, along with the reporting package is filed timely.

Corrective Action Plan

Views of Responsible Officials: Life Asset thought it had done what was required by submitting the annual audit on time directly to Federal Grantors (U.S. Department of the Treasury and the U.S. Small Business Administration). Once Life Asset became aware of the requirement to also file data collection forms for single audit to the Federal Audit Clearinghouse, Life Asset did so right away. Life Asset has established an internal control procedure to ensure that the data collection forms and reporting package will be filed timely moving forward.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 504837 2023-001
    Significant Deficiency
  • 504838 2023-001
    Significant Deficiency
  • 1081278 2023-001
    Significant Deficiency
  • 1081279 2023-001
    Significant Deficiency
  • 1081280 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $826,265
59.046 Microloan Program $262,054
21.020 Community Development Financial Institutions Program $50,000