2025-001- Unaccompanied Children Program - ALN 93.676- Reporting - Internal Control (Significant Deficiency) Grant No. 90ZU0620 Passed through from Board of Child Care of the United Methodist Church Grant Period: January 1, 2024 - December 31, 2026 Criteria: 2 CFR 200.303(a) requires non-Federal entities to establish and maintain effective internal controls over compliance with Federal statutes, regulations, and terms and conditions of Federal awards. Quarterly Federal Financial Reporting (FFR) report is required to be submitted by the 15th of the following month. Condition: The quarterly FFR due April 15, 2025 and July 15, 2025 were both filed on September 11, 2025. Questioned Costs: None noted. Effect: Failure to file reports timely could result in noncompliance with regulations and withdrawal of funding. Cause: The late filings were a result of inexperience regarding the filing requirements of the federal grant award. Recommendation: We recommend implementing controls to ensure all reports are filed timely and properly documented. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. The Home promptly filed the FFRs on September 11, 2025 when made aware of the late filings. The Home designated the controller with responsibility for grant reporting including quarterly Federal Financial Reporting (FFR) and will implement policies and procedures to ensure timely filing going forward starting with the October 15, 2025 filing deadline.