Finding Text
US Department of Treasury
Program Name: Coronavirus Relief Fund
Assistance Listing #: 21.019
Finding: 2021 – 002
MATERIAL NONCOMPLIANCE / MATERIAL WEAKNESS
Reporting
Condition: The Organization failed to recognize the requirement for a federal award single audit and did not meet the related required reporting compliance requirements in a timely manner.
Cause: Organization personnel are not familiar with federal reporting compliance requirements.
Effect: No single audit was completed when the financial statement audit was originally completed. This prevented the appropriate filing with the Office of Management and Budget.
Criteria: 2 CFR Part 200, Subpart F requires entities receiving $750,000 or more in federal aid to participate in an audit. These results must then be submitted through the Federal Audit Clearinghouse for review by the Federal Office of Management and Budget.
Recommendation: The Organization should implement reporting procedures specific to each federal award and based on those awards’ specific reporting compliance requirements. The Organization should track and review federal aid received to ensure that if the single audit threshold is exceeded, a third party accounting firm is engaged for a federal awards single audit.
Views of responsible personnel and planned corrective actions: The Organization agrees with this finding. By the issuance of the audit report, the Organization has reviewed existing reporting procedures and engaged a third-party accountant that assists Organizational personnel with the accounting for total federal aid received. Please refer to the corrective action plan on page 27.