Audit 395797

Federal Reporting Criteria – The Uniform Guidance, Part 200.303, requires the Agency to establish and maintain effective internal control over the federal award which provides reasonable assurance the Agency is managing the federal award in compliance with federal statutes, regulations and the terms of the federal award. The SF-425 report, “Federal Financial Report”, is the quarterly summary of financial activity for the federal award. The Complete Trip - ITS4US Deployment Program Phases 2 and 3 contract requires that the recipients of ITS4US grants must submit an SF-425 report quarterly, due the 30th calendar day of the month after the quarter being reported. In addition, the contract requires recipients to file monthly progress reporting in two parts: Part I: Technical Progress and Status Summary and Part II: Financial Status Summary. The monthly reports must be submitted no later than the tenth calendar day of the month following the reporting period. Condition – For one of the two SF-425 reports tested, the report was not submitted timely. For the two monthly progress reports tested, reports were filed with the required information but were not submitted timely. Cause – The Agency did not have policies and procedures in place to ensure timely reporting of SF-425 and monthly reports. Effect – The lack of policies and procedures in place by the Agency could result in late submission of reports. Recommendation – The Agency should establish policies and procedures to ensure reports are submitted timely. Response – We will put procedures in place within our Accounting policy to ensure reports are reviewed/approved and are submitted timely. Conclusion – Response accepted.