Finding Text
2020-04: Material noncompliance with terms and conditions of Federal awards Criteria: The recipient is responsible for complying with audit requirements in accordance with 2 CFR 200, Subpart F. A non-Federal entity that expends $750,000 or more during the non-Federal entity?s fiscal year in Federal awards must have a single or program-specific audit conducted for that year. Condition: The Association did not comply with the audit requirements in accordance with 2 CFR 200, Subpart F in fiscal years ended 2018 and 2019. Effect: Possible ramifications of noncompliance with the terms and conditions of Federal awards include repayment of all Federal awards received, denial of future Federal grants, withdrawal of any support from the Federal level, and potentially lack of support from State and local levels. Cause: Lack of understanding of the Federal award agreement. Identification of a repeat finding: This is a repeat finding from the immediate previous audit. Recommendation: We recommend that the Association should comply with the terms and conditions of Federal awards and that the Program contact require the submission of the required single or program-specific audits for the years not in compliance. Views of responsible officials and planned corrective actions: The Association agrees with this finding and will adhere to the corrective action plan on page 31 in this audit report.