Finding 573149 (2023-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-08-08

AI Summary

  • Core Issue: The Organization did not finalize financial reports for 2021, 2022, and 2023 on time, missing required deadlines.
  • Impacted Requirements: Reports should have been submitted within 30 days of receiving the auditor's report or nine months after the audit period, and annual Federal Financial Reports were due within 90 days.
  • Recommended Follow-up: Ensure the Organization understands audit requirements and establish a timeline for timely report finalization to avoid future noncompliance.

Finding Text

Criteria: 2 CFR Section 200.512 states the entity’s audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). Additionally, entities are required to submit annual Federal Financial Reports within 90 days of the reporting period. Condition: The Organization’s financial information for the periods ending December 31, 2021, 2022, and 2023, were not finalized in a timely manner. Each was finalized during July 2025, which was after the reporting requirement for each period. Cause: The Organization was unaware of the audit requirement. Prior to the March 2021 award, the Organization was not subject to any reporting requirements. Effect: Failure to timely submit reports results in noncompliance with reporting requirements. Questioned Costs: None Context: The Organization’s financial information was not finalized until July 2025, which was after each period’s reporting requirement.

Corrective Action Plan

2021 was the first year the Organization received funds of over $750,000 from the federal program, and management was unaware of audit requirement and the deadline for completing the audit. Management will engage our current auditors to perform the 2024 audit, and it is expected to be completed by the September 30, 2025 deadline.

Categories

Reporting

Other Findings in this Audit

  • 573150 2023-002
    Material Weakness
  • 1149591 2023-001
    Material Weakness
  • 1149592 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
81.049 Office of Science Financial Assistance Program $2.91M