Finding 560844 (2023-005)

Criteria Uniform Guidance requires non-federal entities to submit financial reports to the federal awarding agency, ensuring these reports are accurate, complete, and submitted in a timely manner. Condition There are inadequate internal controls in place to ensure that the Organization’s financial reports are submitted to the federal awarding agency in an accurate, complete, and timely manner. Context For one grant tested, the Organization did not submit the annual financial report for the budget periods ended August 31, 2023 and 2022, despite incurring grant expenditures during those periods. Cause Lack of understanding and awareness of specific reporting deadlines and requirements. The Organization submitted the annual financial report during the period expense reimbursement was received. Effect Failure to comply with reporting requirements can result in non-compliance with federal award terms, which may lead to questioned costs, potential withholding of future funds, or other administrative actions by the federal awarding agency. Questioned Costs None. Repeat Finding No. Recommendation We recommend that management review its reporting procedures to ensure compliance with the reporting requirements of the Uniform Guidance. Management should review internal controls surrounding the preparation and review of financial reports to ensure reports are complete and accurate. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.