FAC Explorer

Finding 505556 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-11-13
Audit: 328259
Organization: Michigan Falun Dafa Association (MI)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The audit for the Shuttered Venue Operators Grant was not completed on time, violating federal requirements.
  • Impacted Requirements: Compliance with 2 CFR Sections 200.501 and 200.512 for timely audit submission was not met.
  • Recommended Follow-Up: Strengthen internal controls and communication regarding compliance requirements to ensure timely audits in the future.

Finding Text

Finding No. 2022-001 Grantor: U.S. Small Business Administration Program Name: COVID-19 – Shuttered Venue Operators Grant Assistance Listing Number: 59.075 Material noncompliance with laws and regulations and significant deficiency in internal controls over Federal awards Criteria: The Association was required to have an audit in compliance with the requirements of 2 CFR Section 200.501 and submit its audit to the Federal Audit Clearinghouse as required by 2 CFR Section 200.512, which was due by September 30, 2023. Condition: The audit was not completed timely. Cause: The internal control procedures for the Association had not been updated for the additional reporting requirements for the Shuttered Venue Operators Grant. Effect or Potential Effect: Untimely submissions hinders the grantor’s administration, monitoring, and decision-making processes. Recommendation: We recommend the strengthening of internal controls procedures over the award process to ensure that all existing and any new compliance requirements be communicated to all involved in the process to ensure timely adherence to all or any requirements. Views of Responsible Officials: See corrective action plan.

Corrective Action Plan

Finding Number: 2022-001 Finding Type: Material noncompliance with laws and regulations and significant deficiency in internal controls over Federal awards. Criteria and Condition: Michigan Falun Dafa Association was required to have an audit in compliance with the requirements of 2 CFR Section 200.501 and submit its audit to the Federal Audit Clearinghouse as required by 2 CFR Section 200.512, which was due by September 30, 2023. Auditors’ Recommendation: The auditors recommended Michigan Falun Dafa Association’s strengthening of internal controls procedures over the award process to ensure that all existing and any new compliance requirements are communicated to all involved in the process to ensure timely adherence to all or any requirements. Michigan Falun Dafa Association’s Response to the Finding and Corrective Action Plan: This is the first year the Michigan Falun Dafa Association expended $750,000 or more of federal award received, and as a result, was not aware of the requirement for a compliance audit. Michigan Falun Dafa Association will strengthen its internal control processes and procedures to ensure that compliance requirements will be communicated to all involved in grant administration to ensure timely adherence to all or any requirements for any new grants received. Responsible Individuals: Zhiwei, Xu, President Xinhua Yu, Treasurer Planned Completion Date: Immediate.

Categories

Reporting Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 1081998 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Shuttered Venue Operators Grant Program $785,246