Finding Text
Finding 2021-002, 2020-001 Noncompliance with Uniform Guidance's Report Submission Requirements - Repeat
Finding
Federal Agency: U.S. Department of Commerce
Program Name: MBDA Business Center
Assistance Listing #: 11.805
Questioned Costs: None
Condition/Context
CMSDC did not submit its audit and data collection form to the Audit Clearinghouse within nine months after the end of the audit period.
Criteria
Uniform Guidance requires that audits must be completed and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.
Cause
In 2021, CMSDC experienced turnover in key personnel. In the third quarter of 2021, CMSDC hired an external CPA firm (comptroller) to conduct the accounting and assist with the financial close and reporting process. The 2020 audit was completed in March 2023. Due to time constraints, the 2021 audit and data collection form were not submitted in the required timeline.
Effect
CMSDC did not comply with Uniform Guidance's requirement for report submission.
Recommendation
We recommend that management completes the financial close and reporting process three months after end of the fiscal year, to allow for timely completion of audits and submissions of data collection forms.
Organization's Management Response
See corrective action plan.