Audit 382219

Financial Reports Submission to Government Agency Criteria: Federal grant compliance and contract terms require timely submission of quarterly progress reports to the Governmental Agency to ensure proper oversight and monitoring of program activities. Condition: During the performance of the audit, we noticed the Council did not submit quarterly reports to National Highway Traffic Safety Administration (NHTSA) on a timely basis. This requirement was not met until September 2025, when the Program Manager became aware of the obligation per audit discussion with Sikich, and then offered to submit retroactive reports. NHTSA’s Contracting Officer’s Representative (COR) agreed to accept these retroactive submissions. Effect: Delayed reporting reduced NHTSA’s ability to monitor program progress in real time, potentially impacting oversight and timely identification of issues. Cause: The Council’s Program Manager, who joined the organization in July 2024, was unaware of the reporting requirement upon assuming the role. Additionally, NHTSA did not prompt for reports, and the requirement was not discussed during monthly status calls with the COR. Recommendation: The Council should implement onboarding procedures and compliance checklists for new program managers to ensure awareness of all reporting requirements. Additionally, periodic internal compliance reviews should be conducted to confirm timely submissions. Views of Responsible Officials: Management agrees with the finding and a response is included in the Corrective Action Plan.