2023-002 Allowable Costs/Cost Principles for U.S. DHHS 94.432 ACL Centers for Independent
Living #2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and
Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls to
prevent, or detect and correct unallowable costs from being charged to a federal award
program.
Condition and Context: Audit procedures noted two instances of expenses charged to the
2001MEILC3-00 grant that were estimated future expenses and that were not incurred or
obligated.
Cause: There is a lack of understanding allowable cost/cost principles and a lack of oversight on
expenses being charged to federal award programs.
Effect: Total expenditures charged to the 2001MEILC3-00 grant were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $115,821. An
additional $15,465 in known questioned costs was also identified as noted below.
Recommendation: Procedures should be implemented to better monitor expenditures charged
to federal award programs by adding a review every month of expenditures charged to federal
grants and training should be sought for individuals involved in recording expenditures to federal
award programs on allowable costs/cost principles. In addition, Alpha One should contact the
Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-003 Period of Performance for U.S. DHHS 94.432 ACL Centers for Independent Living
#2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls over
compliance with period of performance to prevent, or detect and correct costs charged to the
incorrect accounting period.
Condition and Context: Audit procedures noted several expenses charged to the federal award
program that had not been expended or obligated by September 30, 2022, the end of the grant,
and liquidated within the 120-day limit if obligated by September 30, 2022.
Cause: There is a lack of understanding period of performance rules and regulations.
Effect: Total expenditures charged to the federal award program were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $131,286. $115,821 in
known questioned costs were already identified as noted above.
Recommendation: Procedures should be implemented to better monitor grant expenditures and
timelines and consider adding a review every month of expenditures charged to federal grants,
so that expenditures are recorded in the appropriate period. In addition, Alpha One should
contact the Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-004 Reporting for U.S. DHHS 94.432 ACL Centers for Independent Living (Material
Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Centers for Independent Living reporting standards require the filing of annual Federal
Financial Report (SF-425) under grant 2101MEILCL-00 for year ended September 29, 2022 by
January 28, 2023, annual Federal Financial Report (SF-425) under grant 2001MEILC3-00 for
year ended September 30, 2022 by October 30, 2022, and final Federal Financial Report (SF-
425) under grant 2001MEILC3-00 for year ended September 30, 2022 by December 29, 2022.
In addition, reporting standards require that these reports be accurately completed
Condition and Context: Audit procedures noted that all three of these reports were filed late. In
addition, the 2001MEILC3-00 grant reports were completed inaccurately as they showed all
$931,640 of the grant funds as fully expended with no cash on hand, when there was $393,081
of cash on hand, $376,286 of unliquidated obligations, and total expenditures and obligations
were only $800,354.
Cause: There is limited staffing in the finance department, there is a lack of understanding the
instructions for the SF-425 Report, and lack of understanding of allowable costs and appropriate
period of performance for the 2001MEILC3-00 grant.
Effect: The reports were filed 30 days late, 120 days late, and 60 days late. In addition, the
awarding agency was not fully informed of the activity on these grants.
Recommendation: Management should strengthen their controls for the tracking of required
report filings and their due dates. It should implement additional controls to ensure all are filed
on time. The controls should account for the possible loss of key personnel responsible for filing
and have a process to mitigate this risk. In addition, management should consider training for
staff tasked with completing, reviewing, and filing these reports.
Views of Responsible Officials and Planned Corrective Actions: Management will add a process
to ensure all report deadlines are tracked in calendars for individuals responsible, with multiple
reminders regarding deadlines. In addition, management will consider sending key reporting
staff to training on the Federal Financial Report (SF-425).
2023-002 Allowable Costs/Cost Principles for U.S. DHHS 94.432 ACL Centers for Independent
Living #2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and
Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls to
prevent, or detect and correct unallowable costs from being charged to a federal award
program.
Condition and Context: Audit procedures noted two instances of expenses charged to the
2001MEILC3-00 grant that were estimated future expenses and that were not incurred or
obligated.
Cause: There is a lack of understanding allowable cost/cost principles and a lack of oversight on
expenses being charged to federal award programs.
Effect: Total expenditures charged to the 2001MEILC3-00 grant were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $115,821. An
additional $15,465 in known questioned costs was also identified as noted below.
Recommendation: Procedures should be implemented to better monitor expenditures charged
to federal award programs by adding a review every month of expenditures charged to federal
grants and training should be sought for individuals involved in recording expenditures to federal
award programs on allowable costs/cost principles. In addition, Alpha One should contact the
Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-003 Period of Performance for U.S. DHHS 94.432 ACL Centers for Independent Living
#2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls over
compliance with period of performance to prevent, or detect and correct costs charged to the
incorrect accounting period.
Condition and Context: Audit procedures noted several expenses charged to the federal award
program that had not been expended or obligated by September 30, 2022, the end of the grant,
and liquidated within the 120-day limit if obligated by September 30, 2022.
Cause: There is a lack of understanding period of performance rules and regulations.
Effect: Total expenditures charged to the federal award program were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $131,286. $115,821 in
known questioned costs were already identified as noted above.
Recommendation: Procedures should be implemented to better monitor grant expenditures and
timelines and consider adding a review every month of expenditures charged to federal grants,
so that expenditures are recorded in the appropriate period. In addition, Alpha One should
contact the Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-004 Reporting for U.S. DHHS 94.432 ACL Centers for Independent Living (Material
Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Centers for Independent Living reporting standards require the filing of annual Federal
Financial Report (SF-425) under grant 2101MEILCL-00 for year ended September 29, 2022 by
January 28, 2023, annual Federal Financial Report (SF-425) under grant 2001MEILC3-00 for
year ended September 30, 2022 by October 30, 2022, and final Federal Financial Report (SF-
425) under grant 2001MEILC3-00 for year ended September 30, 2022 by December 29, 2022.
In addition, reporting standards require that these reports be accurately completed
Condition and Context: Audit procedures noted that all three of these reports were filed late. In
addition, the 2001MEILC3-00 grant reports were completed inaccurately as they showed all
$931,640 of the grant funds as fully expended with no cash on hand, when there was $393,081
of cash on hand, $376,286 of unliquidated obligations, and total expenditures and obligations
were only $800,354.
Cause: There is limited staffing in the finance department, there is a lack of understanding the
instructions for the SF-425 Report, and lack of understanding of allowable costs and appropriate
period of performance for the 2001MEILC3-00 grant.
Effect: The reports were filed 30 days late, 120 days late, and 60 days late. In addition, the
awarding agency was not fully informed of the activity on these grants.
Recommendation: Management should strengthen their controls for the tracking of required
report filings and their due dates. It should implement additional controls to ensure all are filed
on time. The controls should account for the possible loss of key personnel responsible for filing
and have a process to mitigate this risk. In addition, management should consider training for
staff tasked with completing, reviewing, and filing these reports.
Views of Responsible Officials and Planned Corrective Actions: Management will add a process
to ensure all report deadlines are tracked in calendars for individuals responsible, with multiple
reminders regarding deadlines. In addition, management will consider sending key reporting
staff to training on the Federal Financial Report (SF-425).
2023-002 Allowable Costs/Cost Principles for U.S. DHHS 94.432 ACL Centers for Independent
Living #2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and
Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls to
prevent, or detect and correct unallowable costs from being charged to a federal award
program.
Condition and Context: Audit procedures noted two instances of expenses charged to the
2001MEILC3-00 grant that were estimated future expenses and that were not incurred or
obligated.
Cause: There is a lack of understanding allowable cost/cost principles and a lack of oversight on
expenses being charged to federal award programs.
Effect: Total expenditures charged to the 2001MEILC3-00 grant were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $115,821. An
additional $15,465 in known questioned costs was also identified as noted below.
Recommendation: Procedures should be implemented to better monitor expenditures charged
to federal award programs by adding a review every month of expenditures charged to federal
grants and training should be sought for individuals involved in recording expenditures to federal
award programs on allowable costs/cost principles. In addition, Alpha One should contact the
Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-003 Period of Performance for U.S. DHHS 94.432 ACL Centers for Independent Living
#2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls over
compliance with period of performance to prevent, or detect and correct costs charged to the
incorrect accounting period.
Condition and Context: Audit procedures noted several expenses charged to the federal award
program that had not been expended or obligated by September 30, 2022, the end of the grant,
and liquidated within the 120-day limit if obligated by September 30, 2022.
Cause: There is a lack of understanding period of performance rules and regulations.
Effect: Total expenditures charged to the federal award program were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $131,286. $115,821 in
known questioned costs were already identified as noted above.
Recommendation: Procedures should be implemented to better monitor grant expenditures and
timelines and consider adding a review every month of expenditures charged to federal grants,
so that expenditures are recorded in the appropriate period. In addition, Alpha One should
contact the Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-004 Reporting for U.S. DHHS 94.432 ACL Centers for Independent Living (Material
Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Centers for Independent Living reporting standards require the filing of annual Federal
Financial Report (SF-425) under grant 2101MEILCL-00 for year ended September 29, 2022 by
January 28, 2023, annual Federal Financial Report (SF-425) under grant 2001MEILC3-00 for
year ended September 30, 2022 by October 30, 2022, and final Federal Financial Report (SF-
425) under grant 2001MEILC3-00 for year ended September 30, 2022 by December 29, 2022.
In addition, reporting standards require that these reports be accurately completed
Condition and Context: Audit procedures noted that all three of these reports were filed late. In
addition, the 2001MEILC3-00 grant reports were completed inaccurately as they showed all
$931,640 of the grant funds as fully expended with no cash on hand, when there was $393,081
of cash on hand, $376,286 of unliquidated obligations, and total expenditures and obligations
were only $800,354.
Cause: There is limited staffing in the finance department, there is a lack of understanding the
instructions for the SF-425 Report, and lack of understanding of allowable costs and appropriate
period of performance for the 2001MEILC3-00 grant.
Effect: The reports were filed 30 days late, 120 days late, and 60 days late. In addition, the
awarding agency was not fully informed of the activity on these grants.
Recommendation: Management should strengthen their controls for the tracking of required
report filings and their due dates. It should implement additional controls to ensure all are filed
on time. The controls should account for the possible loss of key personnel responsible for filing
and have a process to mitigate this risk. In addition, management should consider training for
staff tasked with completing, reviewing, and filing these reports.
Views of Responsible Officials and Planned Corrective Actions: Management will add a process
to ensure all report deadlines are tracked in calendars for individuals responsible, with multiple
reminders regarding deadlines. In addition, management will consider sending key reporting
staff to training on the Federal Financial Report (SF-425).
2023-002 Allowable Costs/Cost Principles for U.S. DHHS 94.432 ACL Centers for Independent
Living #2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and
Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls to
prevent, or detect and correct unallowable costs from being charged to a federal award
program.
Condition and Context: Audit procedures noted two instances of expenses charged to the
2001MEILC3-00 grant that were estimated future expenses and that were not incurred or
obligated.
Cause: There is a lack of understanding allowable cost/cost principles and a lack of oversight on
expenses being charged to federal award programs.
Effect: Total expenditures charged to the 2001MEILC3-00 grant were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $115,821. An
additional $15,465 in known questioned costs was also identified as noted below.
Recommendation: Procedures should be implemented to better monitor expenditures charged
to federal award programs by adding a review every month of expenditures charged to federal
grants and training should be sought for individuals involved in recording expenditures to federal
award programs on allowable costs/cost principles. In addition, Alpha One should contact the
Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-003 Period of Performance for U.S. DHHS 94.432 ACL Centers for Independent Living
#2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls over
compliance with period of performance to prevent, or detect and correct costs charged to the
incorrect accounting period.
Condition and Context: Audit procedures noted several expenses charged to the federal award
program that had not been expended or obligated by September 30, 2022, the end of the grant,
and liquidated within the 120-day limit if obligated by September 30, 2022.
Cause: There is a lack of understanding period of performance rules and regulations.
Effect: Total expenditures charged to the federal award program were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $131,286. $115,821 in
known questioned costs were already identified as noted above.
Recommendation: Procedures should be implemented to better monitor grant expenditures and
timelines and consider adding a review every month of expenditures charged to federal grants,
so that expenditures are recorded in the appropriate period. In addition, Alpha One should
contact the Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-004 Reporting for U.S. DHHS 94.432 ACL Centers for Independent Living (Material
Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Centers for Independent Living reporting standards require the filing of annual Federal
Financial Report (SF-425) under grant 2101MEILCL-00 for year ended September 29, 2022 by
January 28, 2023, annual Federal Financial Report (SF-425) under grant 2001MEILC3-00 for
year ended September 30, 2022 by October 30, 2022, and final Federal Financial Report (SF-
425) under grant 2001MEILC3-00 for year ended September 30, 2022 by December 29, 2022.
In addition, reporting standards require that these reports be accurately completed
Condition and Context: Audit procedures noted that all three of these reports were filed late. In
addition, the 2001MEILC3-00 grant reports were completed inaccurately as they showed all
$931,640 of the grant funds as fully expended with no cash on hand, when there was $393,081
of cash on hand, $376,286 of unliquidated obligations, and total expenditures and obligations
were only $800,354.
Cause: There is limited staffing in the finance department, there is a lack of understanding the
instructions for the SF-425 Report, and lack of understanding of allowable costs and appropriate
period of performance for the 2001MEILC3-00 grant.
Effect: The reports were filed 30 days late, 120 days late, and 60 days late. In addition, the
awarding agency was not fully informed of the activity on these grants.
Recommendation: Management should strengthen their controls for the tracking of required
report filings and their due dates. It should implement additional controls to ensure all are filed
on time. The controls should account for the possible loss of key personnel responsible for filing
and have a process to mitigate this risk. In addition, management should consider training for
staff tasked with completing, reviewing, and filing these reports.
Views of Responsible Officials and Planned Corrective Actions: Management will add a process
to ensure all report deadlines are tracked in calendars for individuals responsible, with multiple
reminders regarding deadlines. In addition, management will consider sending key reporting
staff to training on the Federal Financial Report (SF-425).
2023-002 Allowable Costs/Cost Principles for U.S. DHHS 94.432 ACL Centers for Independent
Living #2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and
Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls to
prevent, or detect and correct unallowable costs from being charged to a federal award
program.
Condition and Context: Audit procedures noted two instances of expenses charged to the
2001MEILC3-00 grant that were estimated future expenses and that were not incurred or
obligated.
Cause: There is a lack of understanding allowable cost/cost principles and a lack of oversight on
expenses being charged to federal award programs.
Effect: Total expenditures charged to the 2001MEILC3-00 grant were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $115,821. An
additional $15,465 in known questioned costs was also identified as noted below.
Recommendation: Procedures should be implemented to better monitor expenditures charged
to federal award programs by adding a review every month of expenditures charged to federal
grants and training should be sought for individuals involved in recording expenditures to federal
award programs on allowable costs/cost principles. In addition, Alpha One should contact the
Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-003 Period of Performance for U.S. DHHS 94.432 ACL Centers for Independent Living
#2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls over
compliance with period of performance to prevent, or detect and correct costs charged to the
incorrect accounting period.
Condition and Context: Audit procedures noted several expenses charged to the federal award
program that had not been expended or obligated by September 30, 2022, the end of the grant,
and liquidated within the 120-day limit if obligated by September 30, 2022.
Cause: There is a lack of understanding period of performance rules and regulations.
Effect: Total expenditures charged to the federal award program were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $131,286. $115,821 in
known questioned costs were already identified as noted above.
Recommendation: Procedures should be implemented to better monitor grant expenditures and
timelines and consider adding a review every month of expenditures charged to federal grants,
so that expenditures are recorded in the appropriate period. In addition, Alpha One should
contact the Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-004 Reporting for U.S. DHHS 94.432 ACL Centers for Independent Living (Material
Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Centers for Independent Living reporting standards require the filing of annual Federal
Financial Report (SF-425) under grant 2101MEILCL-00 for year ended September 29, 2022 by
January 28, 2023, annual Federal Financial Report (SF-425) under grant 2001MEILC3-00 for
year ended September 30, 2022 by October 30, 2022, and final Federal Financial Report (SF-
425) under grant 2001MEILC3-00 for year ended September 30, 2022 by December 29, 2022.
In addition, reporting standards require that these reports be accurately completed
Condition and Context: Audit procedures noted that all three of these reports were filed late. In
addition, the 2001MEILC3-00 grant reports were completed inaccurately as they showed all
$931,640 of the grant funds as fully expended with no cash on hand, when there was $393,081
of cash on hand, $376,286 of unliquidated obligations, and total expenditures and obligations
were only $800,354.
Cause: There is limited staffing in the finance department, there is a lack of understanding the
instructions for the SF-425 Report, and lack of understanding of allowable costs and appropriate
period of performance for the 2001MEILC3-00 grant.
Effect: The reports were filed 30 days late, 120 days late, and 60 days late. In addition, the
awarding agency was not fully informed of the activity on these grants.
Recommendation: Management should strengthen their controls for the tracking of required
report filings and their due dates. It should implement additional controls to ensure all are filed
on time. The controls should account for the possible loss of key personnel responsible for filing
and have a process to mitigate this risk. In addition, management should consider training for
staff tasked with completing, reviewing, and filing these reports.
Views of Responsible Officials and Planned Corrective Actions: Management will add a process
to ensure all report deadlines are tracked in calendars for individuals responsible, with multiple
reminders regarding deadlines. In addition, management will consider sending key reporting
staff to training on the Federal Financial Report (SF-425).
2023-002 Allowable Costs/Cost Principles for U.S. DHHS 94.432 ACL Centers for Independent
Living #2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and
Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls to
prevent, or detect and correct unallowable costs from being charged to a federal award
program.
Condition and Context: Audit procedures noted two instances of expenses charged to the
2001MEILC3-00 grant that were estimated future expenses and that were not incurred or
obligated.
Cause: There is a lack of understanding allowable cost/cost principles and a lack of oversight on
expenses being charged to federal award programs.
Effect: Total expenditures charged to the 2001MEILC3-00 grant were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $115,821. An
additional $15,465 in known questioned costs was also identified as noted below.
Recommendation: Procedures should be implemented to better monitor expenditures charged
to federal award programs by adding a review every month of expenditures charged to federal
grants and training should be sought for individuals involved in recording expenditures to federal
award programs on allowable costs/cost principles. In addition, Alpha One should contact the
Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-003 Period of Performance for U.S. DHHS 94.432 ACL Centers for Independent Living
#2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls over
compliance with period of performance to prevent, or detect and correct costs charged to the
incorrect accounting period.
Condition and Context: Audit procedures noted several expenses charged to the federal award
program that had not been expended or obligated by September 30, 2022, the end of the grant,
and liquidated within the 120-day limit if obligated by September 30, 2022.
Cause: There is a lack of understanding period of performance rules and regulations.
Effect: Total expenditures charged to the federal award program were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $131,286. $115,821 in
known questioned costs were already identified as noted above.
Recommendation: Procedures should be implemented to better monitor grant expenditures and
timelines and consider adding a review every month of expenditures charged to federal grants,
so that expenditures are recorded in the appropriate period. In addition, Alpha One should
contact the Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.
2023-004 Reporting for U.S. DHHS 94.432 ACL Centers for Independent Living (Material
Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Centers for Independent Living reporting standards require the filing of annual Federal
Financial Report (SF-425) under grant 2101MEILCL-00 for year ended September 29, 2022 by
January 28, 2023, annual Federal Financial Report (SF-425) under grant 2001MEILC3-00 for
year ended September 30, 2022 by October 30, 2022, and final Federal Financial Report (SF-
425) under grant 2001MEILC3-00 for year ended September 30, 2022 by December 29, 2022.
In addition, reporting standards require that these reports be accurately completed
Condition and Context: Audit procedures noted that all three of these reports were filed late. In
addition, the 2001MEILC3-00 grant reports were completed inaccurately as they showed all
$931,640 of the grant funds as fully expended with no cash on hand, when there was $393,081
of cash on hand, $376,286 of unliquidated obligations, and total expenditures and obligations
were only $800,354.
Cause: There is limited staffing in the finance department, there is a lack of understanding the
instructions for the SF-425 Report, and lack of understanding of allowable costs and appropriate
period of performance for the 2001MEILC3-00 grant.
Effect: The reports were filed 30 days late, 120 days late, and 60 days late. In addition, the
awarding agency was not fully informed of the activity on these grants.
Recommendation: Management should strengthen their controls for the tracking of required
report filings and their due dates. It should implement additional controls to ensure all are filed
on time. The controls should account for the possible loss of key personnel responsible for filing
and have a process to mitigate this risk. In addition, management should consider training for
staff tasked with completing, reviewing, and filing these reports.
Views of Responsible Officials and Planned Corrective Actions: Management will add a process
to ensure all report deadlines are tracked in calendars for individuals responsible, with multiple
reminders regarding deadlines. In addition, management will consider sending key reporting
staff to training on the Federal Financial Report (SF-425).