Audit 412641

2025-001 – Internal Control over Federal Financial Reporting Significant Deficiency and Noncompliance Federal Award Information Assistance Listing Number: 93.676 Program Title: Unaccompanied Alien Children Program Federal Award Identification Numbers (FAIN): 90ZU0440-03-00 Federal Award Year: 2025 Name of Federal Agency: U.S. Department of Health and Human Services Criteria: The grant agreement associated with Federal Award Identification Number (FAIN) 90ZU0440-03-00 and 90ZU0664-01-00 requires quarterly SF-425 Federal Financial Reports to be submitted within 30 calendar days after the end of each reporting period. In addition, 2 CFR § 200.328 requires recipients to submit financial and performance reports as required by the terms and conditions of the federal award. Timely submission of required reports enables the federal awarding agency to effectively monitor program activities and expenditures. Condition: During testing of internal controls over the reporting compliance requirement, we obtained and reviewed the complete population of 10 reports required during the audit period, consisting of quarterly SF-425 Federal Financial Reports and annual reporting requirements. Based on this review, we noted that 2 of the 10 required reports for FAIN 90ZU0440-03-00 were submitted after the due dates established by the grant agreement. The exceptions consisted of two quarterly SF-425 Federal Financial Reports that were not submitted within the required 30-day reporting period. Cause: The Organization's controls over monitoring and tracking federal reporting deadlines were not operating effectively to ensure all required quarterly reports were submitted timely. Established procedures did not consistently identify upcoming due dates or provide sufficient oversight to ensure reports were submitted within required timeframes. Effect or potential effect: Untimely submission of required federal reports may hinder the federal awarding agency's ability to monitor program activities and expenditures and may increase the risk of noncompliance with federal award requirements. While the reports were ultimately submitted and no questioned costs were identified, the control deficiency increases the likelihood that required reporting deadlines may not be met in the future. Questioned costs: No questioned costs identified. Context: The population consisted of 10 required reports during the audit period. As part of control testing, we evaluated the timeliness of all 10 reports and identified two late SF-425 submissions, representing a 20 percent exception rate within the population. Separately, for compliance testing, we selected a sample of three reports and noted no exceptions. HANNA’S HOUSE Schedule of Findings and Questioned Costs For the Year Ended December 31, 2025 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) Recommendation: We recommend the Organization enhance its monitoring controls over federal reporting requirements by implementing formal procedures to track reporting deadlines, document supervisory review of required reports, and verify timely submission. Consideration should also be given to establishing a documented reporting calendar and assigning responsibility for monitoring and following up on upcoming reporting requirements. Management Response: Hanna's House acknowledges the finding regarding the untimely submission of two quarterly SF-425 Federal Financial Reports. The reporting deficiencies identified in the 2025 audit occurred prior to the implementation of the corrective actions established in response to the 2024 audit finding (2024-001). As of September 23, 2025, Hanna's House implemented the following measures to strengthen its federal reporting procedures: • Established a comprehensive reporting calendar with automated reminders to track all required federal reporting deadlines. • Assigned multiple staff members responsibility for report preparation and submission to ensure continuity and accountability. • Implemented quarterly compliance reviews by finance and executive leadership to verify timely completion and submission of required reports. These corrective actions remain in place and have addressed the reporting deficiencies identified in both the 2024 and 2025 audit findings. Since their implementation, Hanna's House has maintained timely submission of its required federal reports. Management considers the corrective actions associated with this finding fully implemented and will continue monitoring compliance with federal reporting requirements to ensure their ongoing effectiveness. HANNA’S HOUSE Summary Schedule of Prior Year Findings and Questioned Costs For the Year Ended December 31, 2024 SECTION I - FINANCIAL STATEMENT FINDINGS No matters were reported. SECTION II - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Reference Number 2024-001 – Untimely Submissions of Standard Form Performance Progress Report (SF PPR) and Standard Form Federal Financial Report (SF 425). Current Status: 2024-001 is a repeat finding in the current fiscal year.