Leadership, Education, and Athletics in PartnershipNon-Profit

Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following based on the compliance requirements noted above: • Determination of allowable costs • Employee travel Condition The Organization does not have written policies and procedures in place related to federal awards, as required under the Uniform Guidance. Cause The Organization has not developed written formal documentation of internal controls to encompass all required areas per the Uniform Guidance. Effect or Potential Effect Failure to have written Uniform Guidance policies and procedures constitute noncompliance with federal audit requirements and could impact subsequent federal funding. No questioned costs are reported as this requirement is procedural in nature. Recommendation The Organization should address the weakness noted above and develop policies and procedures related to federal awards in order to comply with the Uniform Guidance. Views of Responsible Officials Management’s corrective action plan is included at the end of this report.

Criteria or Specific Requirement Grantees must provide reasonable assurance that required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Management of the Organization is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition Samples of required quarterly financial and performance reports were obtained in order to determine internal control over compliance and compliance with federal reporting requirements. As a result of testing, there was no documented evidence that someone other than the preparer was involved in the reporting process. Cause The Organization did not have internal controls in place to ensure approval of reports prior to submission to the federal agency. Effect or Potential Effect Due to the items noted above, there is a risk that amounts reported on quarterly financial and performance reports are incorrect. No questioned costs are reported as this requirement relates to procedural requirements, where questioned costs are not quantifiable. Recommendation The Organization should address the weaknesses in internal controls noted above by requiring two individuals to be involved in the reporting process, and that the review and oversight be formally documented. Views of Responsible Officials Management’s corrective action plan is included at the end of this report

Criteria or Specific Requirement According to 2 CFR Section 200.512(a) of the Uniform Guidance, auditees are required to submit the audit report and Data Collection Form (DCF) to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after the reports are received from the auditor or nine months after the end of the audit period. Condition The DCF was not submitted by its due date of May 31, 2025. Cause Due to the conditions noted in findings 2024-001 and 2024-002, there were delays in the audit process that led to the delay in the federal single audit being completed. Effect or Potential Effect Delays in the audit resulted in the FAC deadline being missed. Failure to submit the DCF and single audit report timely constitutes noncompliance with federal audit requirements and could impact subsequent federal funding. No questioned costs are reported as this requirement is administrative in nature. Recommendation Improve the timeliness of financial information and submit the DCF and single audit report by the due date. Views of Responsible Officials Management’s corrective action plan is included at the end of this report.