EIN: 831638344
UEI: ZHYXP9BA23F5
Audited by: Clark Nuber PS
Oversight agency: 11 [Department of Commerce]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 22, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 22, 2026 (70 days ago).
What is a management decision? →Significant deficiency in internal control over compliance related to reporting. Federal Agency: United States Department of Commerce Program Title: Congressionally Identified Awards and Projects Assistance Listing Number: 11.469 Project Number: NA25NMFX469G0061 Award Period: November 1, 2023 - October 31, 2026 Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act) that are codified in 2 Code of Federal Regulations (CFR) Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register the covered subawards in the System for Award Management (SAM) and report the required subaward data no later than the last day of the month following the month the subaward was made. Condition/Context for Evaluation During the award period ended June 30, 2025, Washington Maritime Blue did not report a covered subaward as required by the Transparency Act. Transaction Tested: 1 Dollar Amount of Transactions Tested: $10,953 Subaward Not Reported: 1 Subaward Not Reported: $49,646 Report Not Timely: 1 Report Not Timely: $10,953 Subaward Amount Incorrect: NA Subaward Amount Incorrect: NA Subaward Missing Key Elements: 1 Subaward Missing Key Elements: $49,646 Effect or Potential Effect The Organization did not comply with the subaward reporting requirements as specified in 2 CFR 170. Questioned Costs Not applicable. Cause Though the Organization has established internal controls for submitting covered subawards as required by the Transparency Act, the Organization made an incorrect determination that the covered subaward was under the required reporting limit. Repeat Finding No Recommendation We recommend that the Organization ensure required reporting of covered subawards is made in accordance with the Transparency Act. Views of Responsible Officials Management agrees that the required FSRS report was not made. After the issue was raised as part of the Single Audit, management took measures to enter the required subawards.
Show full finding ▾Hide full finding ▴Significant deficiency in internal control over compliance related to reporting. Federal Agency: United States Department of Commerce Program Title: Congressionally Identified Awards and Projects Assistance Listing Number: 11.469 Project Number: NA25NMFX469G0061 Award Period: November 1, 2023 - October 31, 2026 Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act) that are codified in 2 Code of Federal Regulations (CFR) Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register the covered subawards in the System for Award Management (SAM) and report the required subaward data no later than the last day of the month following the month the subaward was made. Condition/Context for Evaluation During the award period ended June 30, 2025, Washington Maritime Blue did not report a covered subaward as required by the Transparency Act. Transaction Tested: 1 Dollar Amount of Transactions Tested: $10,953 Subaward Not Reported: 1 Subaward Not Reported: $49,646 Report Not Timely: 1 Report Not Timely: $10,953 Subaward Amount Incorrect: NA Subaward Amount Incorrect: NA Subaward Missing Key Elements: 1 Subaward Missing Key Elements: $49,646 Effect or Potential Effect The Organization did not comply with the subaward reporting requirements as specified in 2 CFR 170. Questioned Costs Not applicable. Cause Though the Organization has established internal controls for submitting covered subawards as required by the Transparency Act, the Organization made an incorrect determination that the covered subaward was under the required reporting limit. Repeat Finding No Recommendation We recommend that the Organization ensure required reporting of covered subawards is made in accordance with the Transparency Act. Views of Responsible Officials Management agrees that the required FSRS report was not made. After the issue was raised as part of the Single Audit, management took measures to enter the required subawards.
Description: Significant deficiency in internal control over compliance related to reporting. Cause: Though the Organization has established internal controls for submitting covered subawards as required by the Transparency Act, the Organization made an incorrect determination that the covered subaward was under the required reporting limit. Effect: The Organization did not comply with the subaward reporting requirements as specified in 2 CFR 170. Corrective Action: • The Organization’s management and Board of Directors understand the requirement and importance of complying with the Federal Funding Accountability and Transparency Act. Our Accounting & Finance Policy and Subrecipient Monitoring Policy have both been updated to clearly assign the responsibility for timely reporting of subawards. The covered subaward that was not reported in FY25 was reported promptly as soon as this issue was raised as part of the audit. Contact Person: Daniel Pulse, CFO Anticipated completion date: November 2025, Corrective action has been completed.
Significant deficiency in internal control over compliance related to suspension and debarment. Federal Agency: United States Department of Commerce Program Title: Build to Scale Assistance Listing Number: 11.024 Project Number: ED23OIE0G0139 Award Period: January 1, 2025 - September 30, 2025 Criteria The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Condition/Context for Evaluation During the award period ended June 30, 2025, the Organization did not perform suspension and debarment requirements for the three out of three covered transactions tested as part of this audit. Effect or Potential Effect The Organization did not fully comply with the suspension and debarment requirements regarding covered transactions. Questioned Costs Not applicable. Cause Though the Organization has established internal controls for suspension and debarment, the Organization made an incorrect determination that the suspension and debarment requirements outlined in 2 CFR 200 Part 180 only applied to subawards. Repeat Finding No Recommendation We recommend that the Organization ensure suspension and debarment procedures are incorporated into their procurement policy. Views of Responsible Officials Management concurs with the finding and has provided the accompanying management corrective action plan.
Show full finding ▾Hide full finding ▴Significant deficiency in internal control over compliance related to suspension and debarment. Federal Agency: United States Department of Commerce Program Title: Build to Scale Assistance Listing Number: 11.024 Project Number: ED23OIE0G0139 Award Period: January 1, 2025 - September 30, 2025 Criteria The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Condition/Context for Evaluation During the award period ended June 30, 2025, the Organization did not perform suspension and debarment requirements for the three out of three covered transactions tested as part of this audit. Effect or Potential Effect The Organization did not fully comply with the suspension and debarment requirements regarding covered transactions. Questioned Costs Not applicable. Cause Though the Organization has established internal controls for suspension and debarment, the Organization made an incorrect determination that the suspension and debarment requirements outlined in 2 CFR 200 Part 180 only applied to subawards. Repeat Finding No Recommendation We recommend that the Organization ensure suspension and debarment procedures are incorporated into their procurement policy. Views of Responsible Officials Management concurs with the finding and has provided the accompanying management corrective action plan.
Description: Significant deficiency in internal control over compliance related to suspension and debarment. Cause: Though the Organization has established internal controls for suspension and debarment, the Organization made an incorrect determination that the suspension and debarment requirements outlined in 2 CFR 200 Part 180 only applied to subawards. Effect: The Organization did not fully comply with the suspension and debarment requirements regarding covered transactions. Corrective Action: • The Organization’s management previously had an incorrect understanding of the Suspension & Debarment requirements of 2 CFR Part 180. Management was aware that Suspension & Debarment verification is required for subawards, but did not realize that this requirement also extends to vendors when procuring goods or services in excess of $25,000. Washington Maritime Blue’s management is committed to ongoing professional development in order to maintain the highest standards for financial reporting and regulatory compliance, and we became aware of this error mid-way through the year under audit. At that point, we took the following corrective action: o Contract templates were updated to include Suspension & Debarment terms. This updated template was used for all new purchase contracts. • Unfortunately, several federally-funded purchase contracts in excess of $25,000 had already been entered into before this update was made to our processes. We acknowledge that regulations related to Suspension & Debarment were not observed with respect to these earlier purchases, but are confident that the error will not be completed moving forward. Contact Person: Daniel Pulse, CFO Anticipated completion date: November 2025, Corrective action has been completed.
FAC accepted this audit on May 9, 2024 — management decision was due November 9, 2024.
The Organization did not submit its audit report to the Federal Audit Clearinghouse by the March 31, 2024 deadline. Effect: The Organization did not comply with the single audit submission deadline. Cause: The June 30, 2023 year end was the first year in which the Organization received federal awards exceeding the threshold requiring a single audit and the first year in which a financial audit was conducted. The search for and engagement of an auditor to conduct the required audits took a considerable amount of time, which resulted in a late start to the audit process. Despite significant effort, there was not enough time to properly conduct, complete, and submit the single audit. Recommendation: The Organization should implement processes to ensure that the annual audits are completed timely by identifying and engaging an auditor either prior to or shortly after year end to allow for the conduct and completion of the audit in the allowed time.
Show full finding ▾Hide full finding ▴Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR 200 (Uniform Guidance), requires auditees to submit their audit report to the Federal Audit Clearinghouse within the earlier of 30 days of the audit report date or within nine months of the auditee’s year end. Condition: The Organization did not submit its audit report to the Federal Audit Clearinghouse by the March 31, 2024 deadline. Effect: The Organization did not comply with the single audit submission deadline. Cause: The June 30, 2023 year end was the first year in which the Organization received federal awards exceeding the threshold requiring a single audit and the first year in which a financial audit was conducted. The search for and engagement of an auditor to conduct the required audits took a considerable amount of time, which resulted in a late start to the audit process. Despite significant effort, there was not enough time to properly conduct, complete, and submit the single audit. Recommendation: The Organization should implement processes to ensure that the annual audits are completed timely by identifying and engaging an auditor either prior to or shortly after year end to allow for the conduct and completion of the audit in the allowed time.
The Organization’s management and Board of Directors understand the requirement and importance of submitting audited financial statements to the Federal Audit Clearinghouse in a timely manner. Management has developed and implemented process to engage an auditor shortly after the end of the year to be audited and to schedule, monitor, complete, and submit the annual audit to the Federal Audit Clearinghouse within the prescribed time.
See finding 2023-001. The Organization did not submit the required audit report to the Federal Audit Clearinghouse by the March 31, 2024 deadline. Questioned Costs: No questioned costs were noted for this finding.
Show full finding ▾Hide full finding ▴See finding 2023-001. The Organization did not submit the required audit report to the Federal Audit Clearinghouse by the March 31, 2024 deadline. Questioned Costs: No questioned costs were noted for this finding.
The Organization’s management and Board of Directors understand the requirement and importance of submitting audited financial statements to the Federal Audit Clearinghouse in a timely manner. Management has developed and implemented process to engage an auditor shortly after the end of the year to be audited and to schedule, monitor, complete, and submit the annual audit to the Federal Audit Clearinghouse within the prescribed time.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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