Finding Text
Type of Finding: Financial Statement and Federal Award Finding
Finding Resolution Status: Resolved
Identification of Repeat Finding and Finding Reference Number: N/A
Statement of Condition: The Organization failed to identify all federal expenditures and prepare a Schedule of Expenditures of Federal Awards for the year ended June 30, 2021. Auditor considers this to be a material weakness.
Cause: The Organization did not have procedures in place to track federal awards and maintain compliance with Uniform Guidance when expenditures exceed $750,000.
Effect or Potential Effect: The Organization did not comply with Uniform Guidance requirements for federal funds expended in excess of $750,000.
Reportable Views of Responsible Officials: The Organization received additional, one-time COVID-19-related funding that was out of the norm for the Organization. We were not aware that it caused us to exceed the $750,000 threshold for a Uniform Guidance audit and therefore a schedule of federal expenditures was not prepared.
Recommendation: The Organization should develop a process for identifying and tracking federal expenditures for all awards that are federally sourced to ensure the Organization completes required compliance audits in years where federal expenditures exceed $750,000. The Organization should also develop procedures for preparing and maintaining reports that are consistent with compliance requirements under the Uniform Guidance.