Finding 2024-001
material weakness
- Program
- EDUCATION STABILIZATION FUND (84.425)
- Compliance requirement
- Other
- FAC record
- FY2024 audit on fac.gov
Finding text from the filing
Assistance Listing Numbers: All Federal Agency: All Award Numbers: All Award Year: All Pass-Through Entity: All
Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the federal award to ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. This includes properly identifying all federal awards subject to the Uniform Guidance and fairly presenting the required information in the schedule of expenditures of federal awards.
Condition: Total federal expenditures for the year ended June 30, 2024 amounted to $1,095,663. Prior to the performance of financial statement audit procedures, the Organization had determined that federal expenditures during the year ended June 30, 2024 did not exceed the threshold of $750,000.
Cause: The Organization did not communicate with funding contracts regarding the details of certain contracts to determine whether the amounts were subject to the Uniform Guidance and were to be included on the schedule of expenditures of federal awards.
Effect: Upon financial statement audit procedures being performed, it was determined that a Single Audit was required.
Questioned Costs: Not applicable.
Recommendation: We recommend that all funding contracts are carefully reviewed to determine whether the amounts awarded represent federal funding and whether they should be classified as contractor payments or as subrecipient payments. If there is any uncertainty, we recommend that the Organization contact the funding source for clarification. We recommend that a schedule of expenditures of federal awards is prepared on an annual basis to determine if total expenditures exceed the threshold which would require a Single Audit.
Views of responsible officials: The Organization concurs with the recommendations. See Corrective Action Plan.