Finding 572065 (2024-001)

Finding: Item 2024-001 – Financial Statements- Material Weakness Criteria: The VHHA grant and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements of Federal Awards, requires a single audit to be performed if more than $750,000 in federal awards is received during the fiscal year. Condition/context: The Alliance was unaware that they had met the requirements of a single audit as required by the VHHA grant and 2 CFR 200. 2 CFR 200.508 (b) states the auditee must prepare appropriate financial statements, including the schedule of expenditures of federal funds. Cause: Inexperience and lack of understanding of the VHHA grant requirements as well as 2 CFR 200. Effect or potential effect:A single audit would not have been performed and inappropriate financial statements could have been issued, resulting in noncompliance with the VHHA grant and 2 CFR 200 and possible loss of grant funds. Questioned cost: Not applicable. Repeat Finding: Not applicable Recommendation: Grant documents should be reviewed thoroughly and monitored periodically to obtain an understanding of all compliance requirements. View of responsible officials: Management’s response is reported in “Corrective Action Plan” at the end of this report.