Finding Text
"Finding 2022-007
Reporting – Significant Deficiency.
Criteria: 2 CFR section 200.328 states that information must be collected with the frequency required by the terms and conditions of the Federal award. The Organization’s Project Service Agreement indicates that invoices for monthly financial reporting are due to the pass-through entity by the tenth business day of the month for the previous calendar month, except for the last invoice of the 2022 calendar year which was due on January 10, 2023.
Questioned Costs: Not applicable.
Repeat Finding: Not applicable as the Organization is a first time auditee.
Recommendation: We recommend that the Organization develop more effective policies and controls to ensure that the reports are remitted within the time frame specified in the agreements.
Views of Responsible Official: See Corrective Action Plan.
Condition: In our sample of four monthly invoices, all four were submitted after the deadline prescribed in the agreement.
Cause: The Organization has no controls in place to ensure that reports are remitted on a timely basis. Effect: The effect is minimal since the pass-through entity still accepted the reports and reimbursed the
Organization for the majority of the requested funds."