Finding Text
CRITERIA: Each entity must file various financial and special reports. Additionally, the requirements stated that the submitted reports should be supported by the underlying financial data and presented in accordance with program requirements. CONDITION: During our review of the SF-425 reports, we selected two out of the four submissions and noted that the annual report for May 31, 2022, although filed timely included transactions for the month of June 30, 2022, which was outside of the stipulated reporting period. CAUSE: It appears that management mistakenly included June 2022 financial transactions in the May 31, 2022 annual report. EFFECT: The Organization is not in compliance with stated provisions for preparation of the annual report and information outside of the reporting period was included in the annual Federal Financial Report. CONTEXT: This is a condition identified based on review of the Compliance Supplement requirements. QUESTIONED COST: $161,928, which represents June 2022 expenses, identified as mistakenly included in the May 31, 2022 annual report. RECOMMENDATION: We recommend that the Organization in the preparation of its annual report assure the information submitted is proper, accurate, and consistent with the stipulated guidelines. VIEWS OF RESPONSIBLE MANAGEMENT OFFICIAL AND CORRECTIVE ACTION PLAN: Management agrees to the above finding. Corrective action is being taken to correct and resubmit the final report.