Finding Text
2021‐007 – Deficiency in Reporting Controls over Compliance with Financial Reporting – Significant
Deficiency
Federal Program Information
Funding Agency: U.S. Department of Commerce, Minority
Business Development Agency
Federal Award Agreement Number: Not Applicable
Award Year: 2021
Title: MBDA Business Center
CFDA Number: 11.805
Pass‐through Agency: Not Applicable, Direct Program
Pass‐through Identification Number: Not Applicable, Direct Program
Condition ‐ The Entity was unable to provide the annual SF‐424A or provide support it was submitted
on a timely basis. All other reporting under the program was submitted timely and accurately.
Criteria – 2 CFR section 200.303 – Internal Controls of the Uniform Guidance states that the nonfederal
entity must: (a) Establish and maintain effective internal controls over Federal award that
provides reasonable assurance that the non‐Federal entity is managing the Federal award in
compliance with Federal statutes, regulations, and the 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 the “Internal Control
Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO).
Questioned Costs ‐ Not applicable.
Effect ‐ Not submitting an accurate annual report due on a timely basis could result in disallowed
costs.
Cause ‐ The Entity did not have sufficient controls in place to ensure all reporting is submitted to the
grantor agency accurately and on a timely basis, and to retain documentation of the reporting.