Specific instances of noncompliance with 31 USC 3512 that warrant reporting to the next higher level of management and are non-financial relate to which condition?

Specific instances of noncompliance with 31 USC 3512 that warrant reporting to the next higher level of management and are non-financial relate to which condition?

• A. Significant Deficiency
• B. Control Deficiency
• C. Reportable Condition
• D. Material Weakness

Answer: (D)

When evaluating internal controls under FMFIA, a finding that involves noncompliance with 31 USC 3512 is rated as a material weakness if it is severe enough to raise the possibility that noncompliance could occur and not be detected in a timely manner, and it would have a material impact if it did occur. Even though the issue is non-financial, its potential to cause material noncompliance with the law means it meets the threshold for a material weakness and must be brought to the attention of senior management. The other levels describe less severe deficiencies (not reaching the material impact threshold) or use terms that don’t capture the same level of severity for reporting to higher management.

When evaluating internal controls under FMFIA, a finding that involves noncompliance with 31 USC 3512 is rated as a material weakness if it is severe enough to raise the possibility that noncompliance could occur and not be detected in a timely manner, and it would have a material impact if it did occur. Even though the issue is non-financial, its potential to cause material noncompliance with the law means it meets the threshold for a material weakness and must be brought to the attention of senior management. The other levels describe less severe deficiencies (not reaching the material impact threshold) or use terms that don’t capture the same level of severity for reporting to higher management.