Finding 585138 (2023-002)

59.046 MICROLOANS AND TECHNICAL ASSISTANCE GRANT Condition: The organization was unable to submit the 2022 audited financial statements to the SBA within the required 180-day reporting period. Additionally, proof of timely submission of first quarter quarterly reports for the Microloan program was not available. Criteria: During the reporting period the organization is required to submit various reports on the status of the SBA microloan program and technical assistance grant within a specified timeframe after each reporting period ends. Cause: Due to delays in the completion of the June 30, 2022, financial statement audit, audited financial statements were not able to be sent to the SBA within 180 days after year end. Additionally, proof of timely submission of the first quarter quarterly reports for the Microloan program was not retained. Effect: Audited financial statements were not submitted timely and it was not possible to verify the timely submission of the first quarter quarterly reports. Recommendation: To ensure timely preparation of the audited financial statements for submission we recommend the Organization to implement additional yearend closing procedures and review of required GAAP adjustments prior to the audit. We also recommend the organization implement a data retention policy to retain copies of report submissions for reports submitted via email. Response: Management will review its year-end accounting and internal control procedures and implement improvements where practical.