Finding 620205 (2022-001)

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Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-14

AI Summary

  • Core Issue: The Organization failed to submit Single Audit reports for the years ending September 30, 2020, and 2021, violating OMB Circular A-133 requirements.
  • Impacted Requirements: Noncompliance with federal audit submission deadlines may lead to administrative actions and reflects poor management of federal awards.
  • Recommended Follow-up: Implement controls to ensure timely completion and submission of Single Audits, along with improved monthly and year-end closing procedures.

Finding Text

Reference Number: 2022-001 Federal Awards Criteria: OMB Circular A-133 subpart B ?__200 (a) establishes that Non-Federal entities that expend $750,000 or more in a year in federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part. OMB Circular A-133 subpart B ?__220 establishes that except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part shall be performed annually. Public Law 104-156, known as the Single Audit Act, sections 7502 (h) (1) and (2) (B) establish that the non-Federal Organization shall transmit the reporting package, which shall include the no-Federal Organization?s financial statements, schedule of expenditure of Federal awards, corrective action plan defined under subsection (1), and auditors reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within the earlier of 30 days after receipt of the auditor?s report or 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section. 7504, when the 9-month timeframe would place an undue burden on the non-Federal Organization. Statement of Condition: The Single Audit reports of the Organization for the years ended September 30, 2020, and 2021 were not submitted as required by OMB Circular A-133. Effect: Noncompliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Questioned Costs: None Recommendations: The Organization shall establish controls and processes to enable compliance with completing and submitting the Single Audit by the due date required by the Single Act. Also, the Organization should establish procedures for monthly and year end closing procedures to allow for the timely performance of the Single Audits. This will enable the Organization to comply with the reporting requirements established by applicable regulations.

Categories

Reporting Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.277 Special Purpose Grants/ Insular Areas $780,885
21.000 Neighborworks? America Revolving Capital Fund $519,400
21.000 Investment and Grant Agreement $200,685
21.000 Network Supplemental $80,000
14.169 Housing Counseling Assistance Program $28,302
21.U04 Covid19- Fy 2021 American Rescue $24,038