Audit 406356

2025-001 - Untimely Federal Reporting and Audit Submission Program/Cluster: Health Center Program Cluster Grant#: H80CS00645-23-00/H8LCS50547-01-00 Grant Period: Year Ended June 30, 2025 Federal Agency: U.S. Department of Health and Human Services Criteria: Per the requirements contained in 2 CFR 200.512 (a), the auditee is responsible for submitting the data collection form and the reporting package, including the auditor’s reports, within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period to the Federal Audit Clearinghouse (“FAC”). Condition: The Organization did not maintain effective controls to ensure required Federal reporting was submitted timely. Specifically, the Organization did not submit its Single Audit reporting package to the Federal Audit Clearinghouse by the required deadline. Cause: The Organization lacked sufficiently designed and/or operating controls over Federal reporting deadlines, including timely monitoring of due dates, assignment of responsibility, and supervisory review to ensure completion and submission of required reports and the Single Audit reporting package within required timeframes. Effect: Failure to submit the FAC reporting package timely constitutes noncompliance with Federal reporting requirements and increases the risk that Federal agencies, pass-through entities, and other users do not receive required information on a timely basis for oversight and funding decisions. Repeated or systemic untimely reporting may also subject the Organization to increased oversight or other grantor follow-up. Questioned Costs: No questioned costs identified. Context: The Organization was subject to the Single Audit requirements for the year ended June 30, 2025 because it expended federal awards in excess of the Uniform Guidance threshold. Submission of the reporting package to the FAC is a required element of the Organization’s federal reporting responsibilities and is necessary for federal agencies and pass-through entities to access the audit results and monitor corrective action. This sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No Recommendation: We recommend management design and implement controls over Federal reporting submissions including assigning a responsible individual for FAC submissions, maintaining a compliance calendar with the statutory due date and intermediate milestones, requiring documented supervisory review of the completed data collection form and applicable reporting package before submission, and retaining evidence of timely submission and acceptance by the FAC and awarding agency. Views of Responsible Officials: See management corrective action plan attached.