Finding 2024-001 | Untimely Submission of Financial Status Reports — Ryan White HIV/AIDS Program Significant Deficiency in Internal Control over Compliance | ALN 93.917 | First-Time Finding Finding Number: 2024-001 Planned Completion Date: June 30, 2025 Responsible Official(s): Josafat Saldivar, Fin...
Finding 2024-001 | Untimely Submission of Financial Status Reports — Ryan White HIV/AIDS Program Significant Deficiency in Internal Control over Compliance | ALN 93.917 | First-Time Finding Finding Number: 2024-001 Planned Completion Date: June 30, 2025 Responsible Official(s): Josafat Saldivar, Finance Director (primary); Juan E. Rodriguez, Executive Director (oversight and approval) Agency Response: STDC acknowledges the finding. FSR #1 under Contract HHS001122200004 (Ryan White HIV/AIDS Program, ALN 93.917) for the period April 1 through September 30, 2023 was submitted on February 14, 2024, 106 days after the October 31, 2023 contractual due date. STDC concurs that the late submission constitutes noncompliance with the reporting requirements of Contract HHS001122200004 and 2 CFR Part 200. STDC recognizes the need for a more formalized and proactive process to ensure timely submission of all required financial reports. No formal, cross-program FSR submission calendar with assigned responsibility and automated advance reminders was in place during FY2024. Related reports had been prepared and submitted by the former Finance Director, Ms. Julia C. Gonzalez, but this one had not been completed prior to her departure. Mr. Josafat Saldivar was appointed as Interim Fiscal Officer after Ms. Gonzalez's departure (last work date was October 13, 2023). Shortly after his interim appointment, STDC suffered a ransomware attack on November 3, 2023, which also impacted the accounting system. Recovery efforts were completed and the database restored in January 2024, after which Mr. Saldivar and his staff began data entry and catching up on required reports for all funding agencies. STDC is fully committed to implementing the controls necessary to prevent recurrence across all programs. Corrective Actions to Be Implemented: Action 1 (Target: April 30, 2025): Develop a formal, written FSR Submission Calendar covering all active federal and state programs (Ryan White, State Services, HOPWA, Aging Cluster, LIHEAP). The calendar will identify each FSR period, the contractual due date, the assigned responsible staff member, and advance reminder dates at 30 days and 7 days prior to each deadline. Action 2 (Target: April 30, 2025): Configure automated calendar reminders (Outlook or equivalent) for each FSR due date and each advance reminder date. Reminders will be sent to the Fiscal Officer and the Executive Director for all programs. Action 3 (Target: May 15, 2025): Present the completed FSR Submission Calendar to the Executive Director for review and written approval. Retain the signed calendar in the grants compliance files and update it at the start of each new contract year. Action 4 (Target: May 31, 2025): Beginning in May 2025, include FSR submission status (upcoming due dates, submission dates, and any variances from the schedule) as a standing agenda item in the monthly Fiscal Officer report to the Executive Director. Action 5 (Target: June 30, 2025): Conduct a cross-training session with at least one backup staff member to ensure continuity of FSR submission across all programs in the event of staff absence or turnover. Monitoring and Evaluation: Monthly FSR status reports to the Executive Director will verify that all financial reports are submitted on or before contractual due dates. The FSR Submission Calendar will be reviewed and updated annually at the start of each contract year. Any late submission will be immediately reported to the Executive Director and documented in the Finance Department's internal review records.