Agency U.S. Department of Transportation, Federal Motor Carrier Safety Administration ALN 20.232 Commercial Driver’s License Program Implementation Federal Award Identification Number 69A3601940354CDL0NV, 69A3602040472CDL0NV 69A3602140719CDL0NV 69A3602240864CDL0NV Criteria According to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 200.327 and 200.328, recipients of federal awards are required to submit performance and financial reports by the due dates specified in the terms and conditions of the federal award. Condition and Context We sampled and tested eight reports and four of the eight selected reports were not submitted within the specified reporting dates. Cause The College failed to maintain a system of controls and procedures to ensure that the various reports were submitted within the required reporting timeframes. Effect Failure to submit required reports within the required dates may result in The College being noncompliant with 2 CFR 200.327 & 328. Repeat Finding No Recommendation We recommend The College review its controls and procedures to ensure that all its reporting requirements are being adhered to and the reports are being submitted with the specified filing dates.
2 CFR § 1201.1 except as otherwise provided in this part, the Department of Transportation adopts the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200). 2 CFR § 200.328 states unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead). This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. The District’s grant agreement states on or before the 20th day of the first month of each quarter and until the budget period end date of December 31, 2026, the Recipient shall submit to the U.S. Department of Transportation (USDOT) a Quarterly Project Progress Report and Recertification. During testing we noted four out of four (100%) of the District’s quarterly reports were submitted to USDOT with the incorrect expenditures, report period or grant period. Due to the deficient internal control structure, elements of the reporting requirements were not properly submitted during Fiscal Year 2023. Failure to properly submit quarterly reports could result in ODOT taking action against the District for failure to comply with programmatic requirements. The District should implement policies and procedures to review the reports prior to submission to ODOT, to help ensure the reports are complete and accurate.
FINDING 2023-004 Subject: Water and Waste Disposal System for Rual Communities - Reporting Federal Agency: Department of Agriculture Federal Program: Water and Waste Disposal System for Rural Communities Assistance Listings Number: 10.760 Federal Award Number and Year (or Other Identifying Number): CY 2023 Compliance Requirement: Reporting Audit Findings: Material Weakness, Modified Opinion Condition and Context The Town had not designed or implemented adequate internal controls and procedures to ensure that reports were prepared, accurate, and submitted in accordance with the applicable compliance requirements for the federal grant. The United States Department of Agriculture (USDA) requires the following reports be submitted annually: Statement of Budget, Income, and Equity (Form RD 442-2) Balance Sheet (Form RD 442-3) The Form RD 442-2 covers financial operations relating to the Town's water main replacement project and the Form RD 442-3 presents the financial status of the project. In both instances, a borrower may submit the financial data on other forms, provided the forms are in a similar format and signed and dated by the organization's official to certify the correctness of the information. Alternatively, an annual audit may be submitted in lieu of the forms. The Town was required to file each report, as noted above, during the audit period; however, the reports were not filed. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: INDIANA STATE BOARD OF ACCOUNTS 19 TOWN OF LAFONTAINE SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.302(b) states in part: "The financial management system of each non-Federal entity must provide for the following . . . (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. . . ." 7 CFR 1780.47 states in part: "Borrower accounting methods, management reporting and audits. . . . (e) Borrowers exempt from audits. All borrowers who are exempt from audits, will, within 60 days following the end of each fiscal year, furnish the RUS with annual financial statements, consisting of a verification of the organization's balance sheet and statement of income and expense by an appropriate official of the organization. Forms RD 442-2, 'Statement of Budget, Income and Equity,' and 442-3 may be used. (f) Management reports. These reports will furnish management with a means of evaluating prior decisions and serve as a basis for planning future operations and financial strategies. In those cases where revenues from multiple sources are pledged as security for an RUS loan, two reports will be required; one for the project being financed by RUS and one combining the entire operation of the borrower. In those cases where RUS loans are secured by general obligation bonds or assessments and the borrower combines revenues from all sources, one management report combining all such revenues is acceptable. The following management data will be submitted by the borrower to the processing office. These reports at a minimum will include a balance sheet and income and expense statement. . . . (2) Annual management reports. Prior to the beginning of each fiscal year the following will be submitted to the processing office. (If Form RD 442-2 is used as the annual management report, enter data in column three only of Schedule 1, and complete all of Schedule 2.) (i) Two copies of the management reports and proposed 'Annual Budget'. (ii) Financial information may be reported on Form RD 442-2 which includes Schedule 1, 'Statement of Budget, Income and Equity' and Schedule 2, 'Projected Cash Flow' or information in similar format. (iii) A copy of the rate schedule in effect at the time of submission. INDIANA STATE BOARD OF ACCOUNTS 20 TOWN OF LAFONTAINE SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (g) Substitute for management reports. When RUS loans are secured by the general obligation of the public body or tax assessments which total 100 percent of the debt service requirements, the State program official may authorize an annual audit to substitute for other management reports if the audit is received within nine months after the end of the audit period." Cause The Town incorrectly assumed that the reports were filed by the engineering firm coordinating the grant. Effect Without the proper implementation of an effectively designed system of internal controls, the Town cannot ensure the required reports are filed with the awarding agency. As such, the USDA does not have accurate and current information to discern the financial status of the Town's project. Furthermore, noncompliance with the provisions of federal statutes, regulations, and the terms and conditions of the federal award could result in the loss of future federal funding to the Town. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the Town's management design and implement a system of internal controls to ensure that all required reports are filed. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
31 CFR § 35.4(c) requires, in part, recipients, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. 2 CFR 1000.10 provides that, except for the deviations set forth elsewhere in this Part, the Department of Treasury adopts the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards set forth at 2 CFR Part 200. 2 CFR 200.302(b) states, in part, that the financial management system of each non-Federal entity must provide for the accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. The County was required to submit a Project and Expenditure Report by October 31, 2023, to the U.S Department of the Treasury through the Treasury’s Portal. However, the lack of adequate control procedures in place for reporting resulted in the County omitting $2,000,851 in expenditures that were reported on their 2023 Schedule of Expenditures of Federal Awards from their 2023 third quarter Project and Expenditure Report. We also noted the County submitted the 2023 fourth quarter Project and Expenditure Report on March 7, 2024 instead of the required date of January 31 2024. The County should establish a proper control process over reporting to ensure the timely, complete, and accurate submission of the Project and Expenditure Reports. This will help reduce the risk of Treasury taking action against the County for failure to comply with programmatic requirements.
31 CFR § 35.4(c) requires, in part, recipients, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. 2 CFR 1000.10 provides that, except for the deviations set forth elsewhere in this Part, the Department of Treasury adopts the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards set forth at 2 CFR Part 200. 2 CFR 200.302(b) states, in part, that the financial management system of each non-Federal entity must provide for the accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. The County was required to submit a Project and Expenditure Report by October 31, 2023, to the U.S Department of the Treasury through the Treasury’s Portal. However, the lack of adequate control procedures in place for reporting resulted in the County omitting $2,000,851 in expenditures that were reported on their 2023 Schedule of Expenditures of Federal Awards from their 2023 third quarter Project and Expenditure Report. We also noted the County submitted the 2023 fourth quarter Project and Expenditure Report on March 7, 2024 instead of the required date of January 31 2024. The County should establish a proper control process over reporting to ensure the timely, complete, and accurate submission of the Project and Expenditure Reports. This will help reduce the risk of Treasury taking action against the County for failure to comply with programmatic requirements.
1. Reporting Finding Number: 2023-002 Assistance Listing Number and Title: AL # 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Material Weakness and Noncompliance 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The County submitted the required Project and Expenditure Report on April 10, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records due to $1,210,069 identified as loss of revenue being excluded from Project and Expenditure Report. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports. Officials’ Response: See Corrective Action Plan.
1. Reporting Finding Number: 2023-002 Assistance Listing Number and Title: AL # 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Material Weakness and Noncompliance 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The County submitted the required Project and Expenditure Report on April 10, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records due to $1,210,069 identified as loss of revenue being excluded from Project and Expenditure Report. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports. Officials’ Response: See Corrective Action Plan.
1. Reporting Finding Number: 2023-002 Assistance Listing Number and Title: AL # 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Material Weakness and Noncompliance 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The County submitted the required Project and Expenditure Report on April 10, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records due to $1,210,069 identified as loss of revenue being excluded from Project and Expenditure Report. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports. Officials’ Response: See Corrective Action Plan.
1. Reporting Finding Number: 2023-002 Assistance Listing Number and Title: AL # 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Material Weakness and Noncompliance 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The County submitted the required Project and Expenditure Report on April 10, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records due to $1,210,069 identified as loss of revenue being excluded from Project and Expenditure Report. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports. Officials’ Response: See Corrective Action Plan.
1. Reporting Finding Number: 2023-002 Assistance Listing Number and Title: AL # 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Material Weakness and Noncompliance 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The County submitted the required Project and Expenditure Report on April 10, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records due to $1,210,069 identified as loss of revenue being excluded from Project and Expenditure Report. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports. Officials’ Response: See Corrective Action Plan.
1. Reporting Finding Number: 2023-002 Assistance Listing Number and Title: AL # 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Material Weakness and Noncompliance 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The County submitted the required Project and Expenditure Report on April 10, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records due to $1,210,069 identified as loss of revenue being excluded from Project and Expenditure Report. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports. Officials’ Response: See Corrective Action Plan.
2023-002 – Financial Reporting Finding Type: Material Noncompliance; Material Weakness in Internal Control over Compliance Program: Rural Communities Opioid Response – Planning/Rural Health Outreach and Rural Network Development Program (AL# 93.912); U.S. Department of Health and Human Services; Direct award; all grant numbers. Criteria: The Organization failed to follow the financial reporting requirements in 2 CFR section 200.328. The Organization did not trace the amounts reported to accounting records that support the audited financial statements and the schedule of expenditures of federal awards to verify accuracy and completeness. Condition: Reported amounts were not reviewed and matched to the accounting records accurately prior to submission. Cause: The Organization does not have an adequate level of review in place to properly monitor the amounts being reported for compliance. Actual amounts reported were inaccurate and did not match the actual expenses up to that point in time. The Organization did not follow the specific steps noted in 2 CFR section 200.328 of tracing amounts to records and verifying for accuracy and completeness. Effect: The Organization may not be eligible for future funding or might have to pay back federal funds received for not appropriately identifying and reporting their actual expenses. Questioned Costs: No costs were questioned as a result of this finding. Recommendation: The Organization should implement procedures for verifying accuracy and completeness prior to submission. View of Responsible Officials: Management agrees with the finding and plans to implement procedures for verifying accuracy and completeness prior to submission.
2023-002 – Financial Reporting Finding Type: Material Noncompliance; Material Weakness in Internal Control over Compliance Program: Rural Communities Opioid Response – Planning/Rural Health Outreach and Rural Network Development Program (AL# 93.912); U.S. Department of Health and Human Services; Direct award; all grant numbers. Criteria: The Organization failed to follow the financial reporting requirements in 2 CFR section 200.328. The Organization did not trace the amounts reported to accounting records that support the audited financial statements and the schedule of expenditures of federal awards to verify accuracy and completeness. Condition: Reported amounts were not reviewed and matched to the accounting records accurately prior to submission. Cause: The Organization does not have an adequate level of review in place to properly monitor the amounts being reported for compliance. Actual amounts reported were inaccurate and did not match the actual expenses up to that point in time. The Organization did not follow the specific steps noted in 2 CFR section 200.328 of tracing amounts to records and verifying for accuracy and completeness. Effect: The Organization may not be eligible for future funding or might have to pay back federal funds received for not appropriately identifying and reporting their actual expenses. Questioned Costs: No costs were questioned as a result of this finding. Recommendation: The Organization should implement procedures for verifying accuracy and completeness prior to submission. View of Responsible Officials: Management agrees with the finding and plans to implement procedures for verifying accuracy and completeness prior to submission.
2023-002 – Financial Reporting Finding Type: Material Noncompliance; Material Weakness in Internal Control over Compliance Program: Rural Communities Opioid Response – Planning/Rural Health Outreach and Rural Network Development Program (AL# 93.912); U.S. Department of Health and Human Services; Direct award; all grant numbers. Criteria: The Organization failed to follow the financial reporting requirements in 2 CFR section 200.328. The Organization did not trace the amounts reported to accounting records that support the audited financial statements and the schedule of expenditures of federal awards to verify accuracy and completeness. Condition: Reported amounts were not reviewed and matched to the accounting records accurately prior to submission. Cause: The Organization does not have an adequate level of review in place to properly monitor the amounts being reported for compliance. Actual amounts reported were inaccurate and did not match the actual expenses up to that point in time. The Organization did not follow the specific steps noted in 2 CFR section 200.328 of tracing amounts to records and verifying for accuracy and completeness. Effect: The Organization may not be eligible for future funding or might have to pay back federal funds received for not appropriately identifying and reporting their actual expenses. Questioned Costs: No costs were questioned as a result of this finding. Recommendation: The Organization should implement procedures for verifying accuracy and completeness prior to submission. View of Responsible Officials: Management agrees with the finding and plans to implement procedures for verifying accuracy and completeness prior to submission.
2023-002 – Financial Reporting Finding Type: Material Noncompliance; Material Weakness in Internal Control over Compliance Program: Rural Communities Opioid Response – Planning/Rural Health Outreach and Rural Network Development Program (AL# 93.912); U.S. Department of Health and Human Services; Direct award; all grant numbers. Criteria: The Organization failed to follow the financial reporting requirements in 2 CFR section 200.328. The Organization did not trace the amounts reported to accounting records that support the audited financial statements and the schedule of expenditures of federal awards to verify accuracy and completeness. Condition: Reported amounts were not reviewed and matched to the accounting records accurately prior to submission. Cause: The Organization does not have an adequate level of review in place to properly monitor the amounts being reported for compliance. Actual amounts reported were inaccurate and did not match the actual expenses up to that point in time. The Organization did not follow the specific steps noted in 2 CFR section 200.328 of tracing amounts to records and verifying for accuracy and completeness. Effect: The Organization may not be eligible for future funding or might have to pay back federal funds received for not appropriately identifying and reporting their actual expenses. Questioned Costs: No costs were questioned as a result of this finding. Recommendation: The Organization should implement procedures for verifying accuracy and completeness prior to submission. View of Responsible Officials: Management agrees with the finding and plans to implement procedures for verifying accuracy and completeness prior to submission.
2023-002 – Financial Reporting Finding Type: Material Noncompliance; Material Weakness in Internal Control over Compliance Program: Rural Communities Opioid Response – Planning/Rural Health Outreach and Rural Network Development Program (AL# 93.912); U.S. Department of Health and Human Services; Direct award; all grant numbers. Criteria: The Organization failed to follow the financial reporting requirements in 2 CFR section 200.328. The Organization did not trace the amounts reported to accounting records that support the audited financial statements and the schedule of expenditures of federal awards to verify accuracy and completeness. Condition: Reported amounts were not reviewed and matched to the accounting records accurately prior to submission. Cause: The Organization does not have an adequate level of review in place to properly monitor the amounts being reported for compliance. Actual amounts reported were inaccurate and did not match the actual expenses up to that point in time. The Organization did not follow the specific steps noted in 2 CFR section 200.328 of tracing amounts to records and verifying for accuracy and completeness. Effect: The Organization may not be eligible for future funding or might have to pay back federal funds received for not appropriately identifying and reporting their actual expenses. Questioned Costs: No costs were questioned as a result of this finding. Recommendation: The Organization should implement procedures for verifying accuracy and completeness prior to submission. View of Responsible Officials: Management agrees with the finding and plans to implement procedures for verifying accuracy and completeness prior to submission.
Finding Number: 2023-002 Assistance Listing Number and Title: Coronavirus State And Local Fiscal Recovery Funds AL # 21.027 Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The City submitted the required Project and Expenditure Report on April 26, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records with the Current Expenditures being overstated by $650,606. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports.
Finding Number: 2023-002 Assistance Listing Number and Title: Coronavirus State And Local Fiscal Recovery Funds AL # 21.027 Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The City submitted the required Project and Expenditure Report on April 26, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records with the Current Expenditures being overstated by $650,606. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports.
Finding Number: 2023-002 Assistance Listing Number and Title: Coronavirus State And Local Fiscal Recovery Funds AL # 21.027 Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The City submitted the required Project and Expenditure Report on April 26, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records with the Current Expenditures being overstated by $650,606. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports.
Finding Number: 2023-002 Assistance Listing Number and Title: Coronavirus State And Local Fiscal Recovery Funds AL # 21.027 Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The City submitted the required Project and Expenditure Report on April 26, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records with the Current Expenditures being overstated by $650,606. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports.
Finding Number: 2023-002 Assistance Listing Number and Title: Coronavirus State And Local Fiscal Recovery Funds AL # 21.027 Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The City submitted the required Project and Expenditure Report on April 26, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records with the Current Expenditures being overstated by $650,606. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports.
2023‐011 Department of Treasury Federal Financial Assistance Listing/ALN 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ In accordance with 2 CFR Part 200.328 and 31 CFR Section 354(c), the federal program requires quarterly and annual project and expenditure reporting be submitted to the granting oversight agency. Condition ‐ We requested copies of the submitted reports and supporting documentation for the year under audit in order to perform the compliance testing. These items could not be reproduced to verify that the reporting was submitted as required under the audit. Cause ‐ The Organization did not have proper procedures to ensure preparation and submission of the required reporting under the federal award. Effect ‐ The deficiency in internal controls resulted in material noncompliance to the Organization. Questioned Costs ‐ None reported. Context/Sampling ‐ No sampling was performed as supporting documentation to allow for testing of the reporting requirement was unavailable. Recommendation ‐ We recommend the Organization update its policies and procedures to allow for the proper identification of all reporting requirements, preparation and review of reports to be submitted, and accumulation of appropriate supporting documentation and schedules. Views of Responsible Officials ‐ Management is in agreement with the finding. Repeat Finding – This is a not a repeat finding.
2023‐011 Department of Treasury Federal Financial Assistance Listing/ALN 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ In accordance with 2 CFR Part 200.328 and 31 CFR Section 354(c), the federal program requires quarterly and annual project and expenditure reporting be submitted to the granting oversight agency. Condition ‐ We requested copies of the submitted reports and supporting documentation for the year under audit in order to perform the compliance testing. These items could not be reproduced to verify that the reporting was submitted as required under the audit. Cause ‐ The Organization did not have proper procedures to ensure preparation and submission of the required reporting under the federal award. Effect ‐ The deficiency in internal controls resulted in material noncompliance to the Organization. Questioned Costs ‐ None reported. Context/Sampling ‐ No sampling was performed as supporting documentation to allow for testing of the reporting requirement was unavailable. Recommendation ‐ We recommend the Organization update its policies and procedures to allow for the proper identification of all reporting requirements, preparation and review of reports to be submitted, and accumulation of appropriate supporting documentation and schedules. Views of Responsible Officials ‐ Management is in agreement with the finding. Repeat Finding – This is a not a repeat finding.
2023‐011 Department of Treasury Federal Financial Assistance Listing/ALN 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ In accordance with 2 CFR Part 200.328 and 31 CFR Section 354(c), the federal program requires quarterly and annual project and expenditure reporting be submitted to the granting oversight agency. Condition ‐ We requested copies of the submitted reports and supporting documentation for the year under audit in order to perform the compliance testing. These items could not be reproduced to verify that the reporting was submitted as required under the audit. Cause ‐ The Organization did not have proper procedures to ensure preparation and submission of the required reporting under the federal award. Effect ‐ The deficiency in internal controls resulted in material noncompliance to the Organization. Questioned Costs ‐ None reported. Context/Sampling ‐ No sampling was performed as supporting documentation to allow for testing of the reporting requirement was unavailable. Recommendation ‐ We recommend the Organization update its policies and procedures to allow for the proper identification of all reporting requirements, preparation and review of reports to be submitted, and accumulation of appropriate supporting documentation and schedules. Views of Responsible Officials ‐ Management is in agreement with the finding. Repeat Finding – This is a not a repeat finding.
Information on the Federal Program: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) – 21.027 Compliance Requirements: Reporting – Timely Submission Type of Finding: Significant deficiency. Criteria: In accordance with 2 CFR 200.328 and the U.S. Department of the Treasury’s SLFRF Compliance and Reporting Guidance, recipients must submit accurate and timely Project and Expenditure Reports by the due dates established by Treasury. Additionally, under 2 CFR 200.303, recipients must establish and maintain effective internal controls over compliance with federal award requirements. Condition: The County did not submit two quarterly Project & Expenditure Reports to the U.S. Department of the Treasury within the required deadlines during 2023 for the SLFRF program. Questioned Costs: $0 Effect: Noncompliance with federal reporting requirements. However, the reports were ultimately submitted and accepted. Cause: Internal control process failure. Repeat Finding: No Recommendation: Management should implement procedures to ensure timely submission of all required SLFRF reports. Management’s Response: We agree with this finding and recommendation. Please see attached action plan related to this finding in this report.
Reporting Finding Number: 2023-004 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers/Housing Voucher Cluster Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? Yes Prior Audit Finding Number: 2022-005 Noncompliance and Material Weakness 2 CFR § 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 CFR § 200.328 which provides that, unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB approved common information collections, as applicable, when providing financial and performance reporting information. 24 CFR § 5.801 (d)(1) provides that unaudited financial statements will be required 60 days after the PHA's fiscal year end, and audited financial statements will then be required no later than 9 months after the PHA's fiscal year end, in accordance with the Single Audit Act and 2 CFR part 200, subpart F. In addition, 24 CFR § 5.801 (b)(1) provides that entities to which this subpart is applicable must provide to HUD such financial information as required by HUD prepared in accordance with Generally Accepted Accounting Principles (GAAP). The Authority submitted its audited submission for the year ended December 31, 2022 in the Financial Assessment Sub-system (FASS-PH) on October 30, 2024. The Authority had received a ninety-two-day extension until December 31, 2023. This submission was not within the required timeframes or extension. The delays in submissions were due to investigations into fraudulent transactions by the former Executive Director. The failure to timely submit the required financial information reduces the U.S. Department of Housing and Urban Development’s ability to monitor subrecipients. The Authority should continue working with their compiler and auditors to rectify the accounting issues resulting from the actions of the former Executive Director. Once that is completed, the Authority should timely remit the required reports.
Reporting Finding Number: 2023-004 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers/Housing Voucher Cluster Federal Award Identification Number / Year: 2023 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? Yes Prior Audit Finding Number: 2022-005 Noncompliance and Material Weakness 2 CFR § 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 CFR § 200.328 which provides that, unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB approved common information collections, as applicable, when providing financial and performance reporting information. 24 CFR § 5.801 (d)(1) provides that unaudited financial statements will be required 60 days after the PHA's fiscal year end, and audited financial statements will then be required no later than 9 months after the PHA's fiscal year end, in accordance with the Single Audit Act and 2 CFR part 200, subpart F. In addition, 24 CFR § 5.801 (b)(1) provides that entities to which this subpart is applicable must provide to HUD such financial information as required by HUD prepared in accordance with Generally Accepted Accounting Principles (GAAP). The Authority submitted its audited submission for the year ended December 31, 2022 in the Financial Assessment Sub-system (FASS-PH) on October 30, 2024. The Authority had received a ninety-two-day extension until December 31, 2023. This submission was not within the required timeframes or extension. The delays in submissions were due to investigations into fraudulent transactions by the former Executive Director. The failure to timely submit the required financial information reduces the U.S. Department of Housing and Urban Development’s ability to monitor subrecipients. The Authority should continue working with their compiler and auditors to rectify the accounting issues resulting from the actions of the former Executive Director. Once that is completed, the Authority should timely remit the required reports.
2 CFR § 1000 gives regulatory effect to the United States Department of Treasury for 2 CFR § 200.328 and 200.329(c)(1) which states, in part, that unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly. Testing over the Village's quarterly reporting requirements for the SLFRF program identified only one quarterly report being submitted on September 9, 2022 which was prior to any SLFRF funding expenditures being made. The SLFRF funding expenditures began on February 2, 2023 with no additional quarterly reports submitted. The Village was unable to provide support to show that the Final Reporting requirement was met. Failure to timely submit the required reports to the pass-through entity could result in material noncompliance and potential loss of future funding.
Criteria: 2 CFR 200.328 (financial and performance reporting) and the terms and conditions of the U.S. Department of the Treasury SLFRF award (ALN 21.027) as administered by the City of Chicago Department of Family & Support Services (DFSS). Required program reports must be complete, accurate, and submitted by the specified due dates. Condition: During the audit period ended December 31, 2023, certain required SYEP program reports were submitted after their due dates. One report required resubmission due to errors identified during review. Cause: A centralized compliance calendar and documented pre‑submission review process were not in place; responsibilities and deadlines were not consistently tracked across program and finance staff. Effect: Noncompliance with reporting requirements increased the risk of delayed reimbursements and impaired management and grantor oversight. Questioned Costs: None were identified. Context: Reporting deviations occurred during 2023 for ALN 21.027 (SYEP). Other reports reviewed were timely and supported by the underlying records. Recommendation: Establish and maintain a Uniform Guidance compliance calendar; implement a pre‑submission peer review checklist that ties reports to the general ledger/SEFA; standardize reporting templates; and provide training to staff on 2 CFR 200 and DFSS contract reporting requirements. Views of Responsible Officials: Management concurs with the finding and has implemented the corrective actions described in the Corrective Action Plan for Finding 2023‑002, including a reporting calendar, pre‑submission reviews, standardized templates, automated reminders, and staff training.
Criteria: 2 CFR 200.328 (financial and performance reporting) and the terms and conditions of the U.S. Department of the Treasury SLFRF award (ALN 21.027) as administered by the City of Chicago Department of Family & Support Services (DFSS). Required program reports must be complete, accurate, and submitted by the specified due dates. Condition: During the audit period ended December 31, 2023, certain required SYEP program reports were submitted after their due dates. One report required resubmission due to errors identified during review. Cause: A centralized compliance calendar and documented pre‑submission review process were not in place; responsibilities and deadlines were not consistently tracked across program and finance staff. Effect: Noncompliance with reporting requirements increased the risk of delayed reimbursements and impaired management and grantor oversight. Questioned Costs: None were identified. Context: Reporting deviations occurred during 2023 for ALN 21.027 (SYEP). Other reports reviewed were timely and supported by the underlying records. Recommendation: Establish and maintain a Uniform Guidance compliance calendar; implement a pre‑submission peer review checklist that ties reports to the general ledger/SEFA; standardize reporting templates; and provide training to staff on 2 CFR 200 and DFSS contract reporting requirements. Views of Responsible Officials: Management concurs with the finding and has implemented the corrective actions described in the Corrective Action Plan for Finding 2023‑002, including a reporting calendar, pre‑submission reviews, standardized templates, automated reminders, and staff training.
Finding 2023-003 Reporting Information on the Federal Program: Assistance Listing Numbers #98.001, #19.415 Criteria: In accordance with 2 CFR Part 200.328 the recipient or subrecipient must submit financial reports as required by the Federal award. Condition: ICFJ was unable to locate certain reports submitted during the year. Cause: ICFJ experienced transition in the accounting department during the year. Certain reports were not able to be retrieved during the audit. Effect or Potential Effect: Although it is our understanding that ICFJ believes that all reports were submitted as required, it is not possible to verify compliance with the reporting requirements if the reports cannot be provided for the audit. Questioned Costs: None. Context: Our audit procedures consisted of testwork performed over reports submitted to the Federal Government. We consider our sample to be representative of the population. The condition appears to be systemic in nature. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We recommend that ICFJ ensure that all financial and programmatic reports are filed using a system that will permit them to be easily retrieved when needed for audit or other purposes.
FINDING 2023-003 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of the Treasury Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027 Federal Award Number and Year (or Other Identifying Number): IN0263 Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Modified Opinion Repeat Finding This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-004. Condition and Context Prior to receipt of direct State and Local Fiscal Recovery Funds (SLFRF) award funds, all eligible entities were required to execute a Financial Assistance Agreement (Agreement), which included the award terms and conditions that recipients must comply with in carrying out the objectives of their award. Per the Agreement, the City was responsible for the effective administration of the federal award, as well as the application of sound management practices and administration of federal funds in a manner consistent with program objectives and terms and conditions of the award. Activities Allowed or Unallowed, Allowable Costs/Cost Principles As part of sound management of the federal award, the City was responsible for implementing a system of internal controls that would ensure compliance with the applicable requirements. The City had not properly designed or implemented such a system. There was no evidence of segregation of duties, such as an oversight, review, or approval process related to these expenditures that would have ensured that expenditures of award funds were made only for activities and costs that were allowable under the federal award and federal regulations. The City passed Ordinance 2022-45 approving a "commitment of up to but not to exceed $400,000 for Infrastructure at the Junction." However, the City made no formal agreements for the payment of claims in relation to the "Junction" Project. Of the ten claims paid with SLFRF funds during 2023, two claims totaling $400,000 were for the "Junction" project. Both claims were paid without itemized invoices and adequate supporting documentation to support amounts paid. INDIANA STATE BOARD OF ACCOUNTS 19 CITY OF LOGANSPORT SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Additionally, the City did not ensure a proper system of internal controls was in place to accurately track expenditures for the SLFRF grant. In 2022, $2.5 million of SLFRF grant funds were transferred out of the City's SLFRF fund into the City of Logansport Project Fund at a financial institution in the name of the City (bank account) and were subsequently comingled with other nonfederal funds as part of a Build Operate Transfer (BOT) Agreement. Of this $2.5 million, $1,626,043 was spent during 2022, leaving $873,957 of the original $2.5 million to be spent in 2023. During 2023, the City disbursed $4,369,454 from its BOT bank account, where SLFRF and other funding sources were comingled without tracking which expenditures were expressly for the purpose of SLFRF. It was not possible to obtain a population of federal expenditures for the BOT expenditures due to this comingling; therefore, a portion of the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirements could not be tested. Costs totaling $1,273,957 were not properly documented and were considered questioned costs. The lack of internal controls and noncompliance was a systemic issue throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.302 states in part: "(a) Each state must expend and account for the Federal award in accordance with state laws and procedures for expending and accounting for the state's own funds. In addition, the state's and the other non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. . . . (b) The financial management system of each non-Federal entity must provide for the following . . . (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the Assistance Listings title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. INDIANA STATE BOARD OF ACCOUNTS 20 CITY OF LOGANSPORT SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. . . . (3) Records that identify adequately the source and application of funds for federally funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. (4) Effective control over, and accountability for, all funds, property, and other assets. . . ." 2 CFR 200.400 states in part: "The application of these cost principles is based on the fundamental premises that: (a) The non-Federal entity is responsible for the efficient and effective administration of the Federal award through the application of sound management practices. (b) The non-Federal entity assumes responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the Federal award. (c) The non-Federal entity, in recognition of its own unique combination of staff, facilities, and experience, has the primary responsibility for employing whatever form of sound organization and management techniques may be necessary in order to assure proper and efficient administration of the Federal award. . . ." 2 CFR 200.403(g) states in part: "Be adequately documented. . . ." 2 CFR 200.404 states in part: "A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. The question of reasonableness is particularly important when the non- Federal entity is predominantly federally-funded. In determining reasonableness of a given cost, consideration must be given to: . . . (e) Whether the non-Federal entity significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the Federal award's cost." Cause Due to the lack of internal controls, the City was unable to differentiate expenditures made from federal and nonfederal funds once it commingled nonfederal funds and federal grant awards in a single bank account. Additionally, the City did not obtain appropriate supporting documentation for federal expenditures. INDIANA STATE BOARD OF ACCOUNTS 21 CITY OF LOGANSPORT SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Effect The City was unable to identify all the expenditures paid with federal funds and cannot ensure, nor can we determine, expenditures of the grant were not unallowable and adhered to established practices and polices. This could result in the misuse of funds and the potential loss of funding for future federal awards. Questioned Costs We identified $1,273,957 in known questioned costs as noted above in the Condition and Context. Recommendation We recommended that management of the City establish a system of internal controls to ensure that grant award funds are accounted for and tracked in a designated grant fund. All activity of the grant should be in this fund with supporting documentation for each transaction. Additionally, the City should obtain appropriate supporting documentation for all federal grant expenditures. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Reporting Federal Agency: Department of Treasury Criteria: Under the requirements of 2 CFR 200.328 and 31 CFR section 35.4(c). 70, performance reports should include various data including current period expenditures. Condition: The County’s first quarter 2023 performance report incorrectly included expenditures that were incurred throughout fiscal year 2022. Questioned Costs: N/A Context: Two of the County’s four reports were initially selected for testing under the program. The County incorrectly included 2022 expenditures in the first quarter report. Effect: The County did not report the expenditures in the proper period as required. Cause: The County did not have adequate controls or procedures in place to identify the applicable reporting requirement and ensure the information was filed accurately and timely. Identification as a Repeat Finding: Yes Recommendation: Management should implement policies and procedures to ensure required reports are completed accurately and filed by their respective due dates as required by the grant agreement and Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding. See separate report for planned corrective actions.
The Authority did not file accurate and timely PR-26 “Financial Summary Report” and PR-29 “Cash on Hand Report” as required. The PR-29 report is HUD’s quarterly cash on hand report of CDBG and CDBG-CV Programs Cause: The Authority did not implement proper controls, including a review process to ensure that quarterly and year-end reporting information extracted from IDIS were accurate and timely reported as required. Condition: The Authority did not have proper controls in place to ensure that quarterly and year-end reports were done in a timely manner. Criteria: The Authority is required under 24CFR570.502(b) to remit the annual performance report PR-26 specifying the amount of funds drawn from the IDIS system 90 days after year end. Under CFR 200 – Uniform Administrative Requirements, Cost Principles and Audit Requirements Subpart D section 200.328 the PR-29 quarterly report is required to be submit quarterly no later than 30 days after year end Effect of Condition: The effect of not accurate and timely reporting affects HUD’s ability to analyze program activities and properly fund programs to meet the needs of the populations served. Recommendation: Internal controls are most effective when reviewing reconciliations and transactions are done by someone not responsible for the preparation of the reconciliations or responsible for the transactions. We recommend that reviews be conducted and documented by someone other than the preparer. We also recommend that the board be given copies of quarterly reports to ensure proper oversight of the financial records and timely submissions. Questioned Costs: $0 Response: This report was late every month in 2023, due to the new Finance Director trying to research and submit the correct numbers to HUD. In 2024 this report was submitted timely.
2 CFR § 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 C.F.R. § 200.328 which states, unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. 2 CFR § 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 CFR § 200.208 which states, in part, that Federal awarding agencies are responsible for ensuring that specific Federal award conditions are consistent with the program design reflected in § 200.202 and include clear performance expectations of recipients as required in § 200.301. The Federal awarding agency or pass- through entity may adjust specific Federal award conditions as needed, in accordance with this section, based on an analysis of specified factors. Additional Federal award conditions may be added provided the applicant or non-Federal entity has been notified, and any additional requirements must be promptly removed once the conditions that prompted them have been satisfied. Additional Federal award conditions may include items such as additional, more detailed financial reports. The various grant agreements for the program state that the grantee shall submit the required reports in an adequate and timely fashion. The Grantor shall provide a format for these reports and shall instruct the Grantee on the proper completion of said reports. All report forms and requirements listed herein shall be provided by the Grantor but shall not be construed to limit the Grantor in making additional and/or further requests, nor in the change or addition of detail to the items listed. The Grantee shall submit to the Grantor a Status Report within 30 days of the request by the Grantor. The County submitted Final and Status Reports; however, possibly due to the failure of existing controls, three out of three (one hundred percent) of Final and Status Reports tested were submitted late. Reporting errors could adversely affect future grant awards. Additional controls and/or procedures should be implemented to help ensure required reports are accurately prepared and submitted in a timely manner.
2023-005 – Reporting Program: ALN# 47.070 = Computer and Information Science and Engineering Grant #: 2216614, 2122756, Grant Period: Year Ended December 31, 2023 Government Agency: National Science Foundation Criteria: Under 2 CFR 200.301 and 2 CFR 200.328, non-Federal entities must maintain documentation sufficient to demonstrate compliance with Federal reporting requirements, including performance and financial reporting. 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 auditors’ 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. Condition: The Organization was unable to provide supporting documentation for the reports submitted to the Federal agency. Specifically, the Organization did not retain copies of the financial and performance reports, nor did it maintain documentation evidencing the data used to prepare those reports. The audit package and data collection form were not submitted to the Federal Audit Clearinghouse for the reporting year December 31, 2023 within nine months after the end of the audit period. Cause: The Organization’s document retention procedures are not sufficiently designed or implemented to ensure that required reporting documentation is retained in accordance with the Uniform Guidance. Account analyses were not performed in a timely manner throughout the year and this led to delays in the start of the audit process. Effect: The lack of adequate documentation increases the risk that: • Reports submitted to the funding agency may be inaccurate or incomplete. • Reporting errors may go undetected. • The Organization may be found noncompliance with Federal record retention requirements. The Organization is deficient in its submission of the required audit reporting package and data collection form. As such, the Organization is noncompliant with the reporting requirements. Questioned Costs: No questioned costs identified. Context: This sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No Recommendation: We recommend that the Organization implement appropriate policies, procedures and controls to ensure that records are maintained in accordance with the applicable compliance requirements and to ensure that future submissions of the Uniform Guidance reports are filed timely. Views of Responsible Officials: See management corrective action plan attached.
2 CFR 1000.10 gives regulatory effect to the Department of Treasury for 2 CFR part 200.302. CFR 200.302(a) states, in part, the non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.302(b)(2) further states, in part, the financial management system of each non-Federal entity must provide for accurate, current, and complete disclosures of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. Additionally, the Ohio Department of Development (ODOD) Water and Wastewater Infrastructure Program Grant Agreement provides in Exhibit II that "Program reports must be submitted on a quarterly basis. Program reports must be submitted by close of business, on the second Friday at the end of each quarter.” Due to deficiencies in the City’s internal controls over reporting, the City did not submit quarterly program reports for any quarter in 2024. Failure to submit required quarterly program reports could result in the City not receiving the reimbursements that it is entitled to. The City should implement internal controls to ensure that reports are submitted by the required deadlines per reporting requirements.
Finding 2023-002: Lack of documentation of review and approval - Material Weakness Program name:Office for Coastal Management Assistance Listing: 11.473 Federal award Identification number: 20 NFWF 339630 Federal award year: 9/1/2020 - 9/30/2024 Federal awarding agency: U.S. Department of Commerce Criteria - In accordance with 2 CFR 200.303, recipients and subrecipients must establish, document and maintain effective internal control over Federal awards. These controls should be in compliance with Federal statutes, regulations, and the terms and conditions of the award, and should align with standards such as the “Standards for Internal Control in the Federal Government” (Green Book) or the COSO framework. This includes controls over: Payroll: Ensuring labor charges are accurate, allowable, and properly approved (2 CFR 200.430). Expenses: Ensuring proper documentation and approval. (2 CFR 200.400(d) ) Reporting: Ensuring financial reports are accurate, complete, and reviewed prior to submission (2 CFR 200.328). Condition - The Organization has limited written processes of certain transaction classes. There was a pervasive lack of documentation of approval over transactions, including payroll, expenses, and reporting. Cause - The Organization did not maintain or consistently apply documentation protocols for internal control reviews. Formal documentation practices were not in place during the audit period. Effect - Lack of documentation as evidence that controls over compliance were being performed. Documentation should be maintained as evidence that sufficient control activities are in place and would effectively prevent or detect and correct noncompliance. Controls must be followed for every transaction and documentation of the control being performed must be maintained. Questioned costs - None identified. Perspective - The deficiency was pervasive across multiple compliance areas and was not isolated to a specific transaction or department. The scope indicates a systemic control weakness during the audit period. Identification of Repeat Findings - This is a repeat finding from the prior year (Finding 2022-002). As a result of the 2022 audit report, issued in October 2025, the Organization began the process of developing updated policies for compliance. In 2025, the Organization formally adopted new policies and procedures that align with the internal control standards per 2 CFR Part 200. Recommendation - We recommend that the Organization ensure updated policies and procedures are implemented and consistently applied. This includes: Documented review and approval of all transactions related to payroll, expenses, and reporting. Maintenance of written evidence supporting such reviews. Regular training and internal monitoring to ensure control procedures are consistently followed. Management response - Management agrees with this assessment and has committed to a corrective action plan. Management has also engaged with a new accounting firm to oversee the financial reporting functions at the Organization.
Finding Number: 2023-002 Assistance Listing Number and Title: Coronavirus State And Local Fiscal Recovery Funds AL # 21.027 Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding, and NEUs that are allocated less than $10 million in SLFRF funding are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter. The City submitted the required Project and Expenditure Report on April 26, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records with the Current Expenditures being overstated by $650,606. Reporting errors could adversely affect future grant awards. Additional controls should be implemented to help ensure accuracy of the reports.
Criteria or Specific Requirement: The quarterly reporting requirements were stated in the "2 CFR 200.328 and 31 CFR section 35.1(c) Reporting and requests for other information" section of the Federal Register dated January 27, 2022. The US Department of Treasury requries that quarterly reports be submitted to the department if a county has a populaton below 250,000 residents and are allocated more than $10 million in SLFRF funding. The quarterly reports must be completed and submitted within the next month after the quarterly period ended. Condition: The County was not able to provide the SLFRF quarterly report to verify that the report was submitted and completed within a timely manner. Context: The County has been unable to access the SLFRF website due to the County receiving error messages that they have "insuficient access rights on cross-reference id". Questioned Costs: $0 Effect: The County was not in compliance with SLFRF reporting requirements. Cause: The County has received error messages that says they have "insufficent access rights on cross-reference id" and they can't log-in to the SLFRF portal. Repeat: No Auditor's Recommendation: We recommend that the County seek out assistance from the US Department of Treasury about correcting their access to the SLFRF quarterly reports. View of Responsible Officials: Management acknowledges the finding and has prepared a corrective action plan. The County will seek out assistance so that they can obtain access to the SLFRF quarterly reports.
Special Tests and Provisions (Reporting) Federal Department – U.S. Department of Transportation Pass-through Illinois Department of Transportation Highway Planning and Construction, Federal Assistance Listing #20.205 County Department – Department of Transportation and Highway Finding 2023 – 003 CRITERIA As required by the grant agreement(s) with the State of Illinois, Department of Transportation (IDOT), grantee agrees to submit periodic financial and performance reporting on the approved IDOT BoBS 2832 form. Grantee shall file quarterly BoBS 2832 reports with grantor describing the expenditure(s) of the funds and performance measures related thereto. Quarterly reports must be submitted no later than 30 calendar days following the period covered by the report. For the purpose of reconciliation, the grantee must submit a BoBS 2832 report for the period ending 11/30. BoBS 2832 report marked as "Final Report" must be submitted to the grantor 60 days after the end date of the agreement. Failure to submit the required BoBS 2832 reports may cause a delay or suspension of funding. The grant agreement also states that “pursuant to 2 CFR 200.328, periodic performance reports shall be submitted no later than 30 calendar days following the period covered by the report.” CONDITION During the current audit period, Cook County Department of Transportation and Highway (DOTH) did not comply with the reporting requirements as outlined in its grant agreement(s). CAUSE Based on discussions with management, this finding was the result of working with consultants who had not previously submitted reports of this nature. The reports they produced required multiple revisions due to errors which lead to DOTH failing to submit the reports in a timely manner. EFFECT Failure to submit reports in a timely manner could impair the grantor agency’s ability to monitor program activities and could result in the loss of grant funding. Also, the failure to ensure accurate amounts are reported could result in the over-reporting and future spending of grant funds. QUESTIONED COSTS None. CONTEXT During our review of seven reports submitted (five quarterly reports and two annual BoBS periodic performance and financial) under three DOTH grants, we noted the 2 annual reports were submitted late. See Finding for chart/table. In addition, for grant C-91-381-19 report, we noted that the “remaining balance available” amount included in the report was overstated by $15,924. This occurred due to a recalculation error in the report. IDENTIFICATION OF REPEATED FINDINGS None. RECOMMENDATION We recommend that DOTH develop and implement procedures to ensure reports are submitted in a timely manner and in compliance with its grant agreements. A compliance calendar of all grants reporting due dates should be maintained to assist with ensuring compliance with reporting requirements. In addition, we recommend DOTH ensure all amounts included on grant reports are accurately calculated and reported. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The County agrees with the finding and recommendation. The County’s corrective action plan is on page 54.
2023-102 Lack of Documentation Related to Reporting (prior two years 2022-108 and 2021-104) (initially reported 2018) Assistance Listing Number: 93.224 and 93.527 Name of Federal Agency: Department of Health and Human Services, HRSA Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program Compliance Requirement: Reporting Pass-through Entity: N/A Federal Grant/Contract Number and Grant Year: H8006452 (2022 and 2023), H2E45500 (2022), COVID-19 ARP H8F40324 (2021), H8K49674 (2023), C1439909 (2020), H2E50094 (2023), COVID-19 H8L50549 (2023) and COVID-19 H8G48569 (2022) Finding Type: Significant Deficiency in Internal Control Questioned Costs: $0 Condition: The Organization did not maintain proper documentation in support of reporting requirements. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Also, under compliance requirements for reporting 2 CFR 200.328 states that information must be collected with the frequency required by the terms and conditions of the federal award for effective monitoring of the federal awards. Cause: Supporting records used to populate the Uniform Data System (UDS) report were not retained by the Organization. Effect: The Organization could submit incorrect information. Recommendation: Documentation should be prepared, reviewed, and retained to support the reporting. The documentation should clearly document who prepared the information, who reviewed the information, and that the reviewer considered whether the information was complete and accurate. Views of Responsible Officials and Planned Corrective Action: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal controls and facilitate segregation of duties best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review was also implemented in 2025.
2023-102 Lack of Documentation Related to Reporting (prior two years 2022-108 and 2021-104) (initially reported 2018) Assistance Listing Number: 93.224 and 93.527 Name of Federal Agency: Department of Health and Human Services, HRSA Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program Compliance Requirement: Reporting Pass-through Entity: N/A Federal Grant/Contract Number and Grant Year: H8006452 (2022 and 2023), H2E45500 (2022), COVID-19 ARP H8F40324 (2021), H8K49674 (2023), C1439909 (2020), H2E50094 (2023), COVID-19 H8L50549 (2023) and COVID-19 H8G48569 (2022) Finding Type: Significant Deficiency in Internal Control Questioned Costs: $0 Condition: The Organization did not maintain proper documentation in support of reporting requirements. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Also, under compliance requirements for reporting 2 CFR 200.328 states that information must be collected with the frequency required by the terms and conditions of the federal award for effective monitoring of the federal awards. Cause: Supporting records used to populate the Uniform Data System (UDS) report were not retained by the Organization. Effect: The Organization could submit incorrect information. Recommendation: Documentation should be prepared, reviewed, and retained to support the reporting. The documentation should clearly document who prepared the information, who reviewed the information, and that the reviewer considered whether the information was complete and accurate. Views of Responsible Officials and Planned Corrective Action: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal controls and facilitate segregation of duties best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review was also implemented in 2025.
2023-102 Lack of Documentation Related to Reporting (prior two years 2022-108 and 2021-104) (initially reported 2018) Assistance Listing Number: 93.224 and 93.527 Name of Federal Agency: Department of Health and Human Services, HRSA Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program Compliance Requirement: Reporting Pass-through Entity: N/A Federal Grant/Contract Number and Grant Year: H8006452 (2022 and 2023), H2E45500 (2022), COVID-19 ARP H8F40324 (2021), H8K49674 (2023), C1439909 (2020), H2E50094 (2023), COVID-19 H8L50549 (2023) and COVID-19 H8G48569 (2022) Finding Type: Significant Deficiency in Internal Control Questioned Costs: $0 Condition: The Organization did not maintain proper documentation in support of reporting requirements. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Also, under compliance requirements for reporting 2 CFR 200.328 states that information must be collected with the frequency required by the terms and conditions of the federal award for effective monitoring of the federal awards. Cause: Supporting records used to populate the Uniform Data System (UDS) report were not retained by the Organization. Effect: The Organization could submit incorrect information. Recommendation: Documentation should be prepared, reviewed, and retained to support the reporting. The documentation should clearly document who prepared the information, who reviewed the information, and that the reviewer considered whether the information was complete and accurate. Views of Responsible Officials and Planned Corrective Action: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal controls and facilitate segregation of duties best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review was also implemented in 2025.
2023-102 Lack of Documentation Related to Reporting (prior two years 2022-108 and 2021-104) (initially reported 2018) Assistance Listing Number: 93.224 and 93.527 Name of Federal Agency: Department of Health and Human Services, HRSA Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program Compliance Requirement: Reporting Pass-through Entity: N/A Federal Grant/Contract Number and Grant Year: H8006452 (2022 and 2023), H2E45500 (2022), COVID-19 ARP H8F40324 (2021), H8K49674 (2023), C1439909 (2020), H2E50094 (2023), COVID-19 H8L50549 (2023) and COVID-19 H8G48569 (2022) Finding Type: Significant Deficiency in Internal Control Questioned Costs: $0 Condition: The Organization did not maintain proper documentation in support of reporting requirements. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Also, under compliance requirements for reporting 2 CFR 200.328 states that information must be collected with the frequency required by the terms and conditions of the federal award for effective monitoring of the federal awards. Cause: Supporting records used to populate the Uniform Data System (UDS) report were not retained by the Organization. Effect: The Organization could submit incorrect information. Recommendation: Documentation should be prepared, reviewed, and retained to support the reporting. The documentation should clearly document who prepared the information, who reviewed the information, and that the reviewer considered whether the information was complete and accurate. Views of Responsible Officials and Planned Corrective Action: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal controls and facilitate segregation of duties best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review was also implemented in 2025.
2023-102 Lack of Documentation Related to Reporting (prior two years 2022-108 and 2021-104) (initially reported 2018) Assistance Listing Number: 93.224 and 93.527 Name of Federal Agency: Department of Health and Human Services, HRSA Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program Compliance Requirement: Reporting Pass-through Entity: N/A Federal Grant/Contract Number and Grant Year: H8006452 (2022 and 2023), H2E45500 (2022), COVID-19 ARP H8F40324 (2021), H8K49674 (2023), C1439909 (2020), H2E50094 (2023), COVID-19 H8L50549 (2023) and COVID-19 H8G48569 (2022) Finding Type: Significant Deficiency in Internal Control Questioned Costs: $0 Condition: The Organization did not maintain proper documentation in support of reporting requirements. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Also, under compliance requirements for reporting 2 CFR 200.328 states that information must be collected with the frequency required by the terms and conditions of the federal award for effective monitoring of the federal awards. Cause: Supporting records used to populate the Uniform Data System (UDS) report were not retained by the Organization. Effect: The Organization could submit incorrect information. Recommendation: Documentation should be prepared, reviewed, and retained to support the reporting. The documentation should clearly document who prepared the information, who reviewed the information, and that the reviewer considered whether the information was complete and accurate. Views of Responsible Officials and Planned Corrective Action: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal controls and facilitate segregation of duties best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review was also implemented in 2025.
2023-102 Lack of Documentation Related to Reporting (prior two years 2022-108 and 2021-104) (initially reported 2018) Assistance Listing Number: 93.224 and 93.527 Name of Federal Agency: Department of Health and Human Services, HRSA Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program Compliance Requirement: Reporting Pass-through Entity: N/A Federal Grant/Contract Number and Grant Year: H8006452 (2022 and 2023), H2E45500 (2022), COVID-19 ARP H8F40324 (2021), H8K49674 (2023), C1439909 (2020), H2E50094 (2023), COVID-19 H8L50549 (2023) and COVID-19 H8G48569 (2022) Finding Type: Significant Deficiency in Internal Control Questioned Costs: $0 Condition: The Organization did not maintain proper documentation in support of reporting requirements. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Also, under compliance requirements for reporting 2 CFR 200.328 states that information must be collected with the frequency required by the terms and conditions of the federal award for effective monitoring of the federal awards. Cause: Supporting records used to populate the Uniform Data System (UDS) report were not retained by the Organization. Effect: The Organization could submit incorrect information. Recommendation: Documentation should be prepared, reviewed, and retained to support the reporting. The documentation should clearly document who prepared the information, who reviewed the information, and that the reviewer considered whether the information was complete and accurate. Views of Responsible Officials and Planned Corrective Action: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal controls and facilitate segregation of duties best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review was also implemented in 2025.
2023-102 Lack of Documentation Related to Reporting (prior two years 2022-108 and 2021-104) (initially reported 2018) Assistance Listing Number: 93.224 and 93.527 Name of Federal Agency: Department of Health and Human Services, HRSA Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program Compliance Requirement: Reporting Pass-through Entity: N/A Federal Grant/Contract Number and Grant Year: H8006452 (2022 and 2023), H2E45500 (2022), COVID-19 ARP H8F40324 (2021), H8K49674 (2023), C1439909 (2020), H2E50094 (2023), COVID-19 H8L50549 (2023) and COVID-19 H8G48569 (2022) Finding Type: Significant Deficiency in Internal Control Questioned Costs: $0 Condition: The Organization did not maintain proper documentation in support of reporting requirements. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Also, under compliance requirements for reporting 2 CFR 200.328 states that information must be collected with the frequency required by the terms and conditions of the federal award for effective monitoring of the federal awards. Cause: Supporting records used to populate the Uniform Data System (UDS) report were not retained by the Organization. Effect: The Organization could submit incorrect information. Recommendation: Documentation should be prepared, reviewed, and retained to support the reporting. The documentation should clearly document who prepared the information, who reviewed the information, and that the reviewer considered whether the information was complete and accurate. Views of Responsible Officials and Planned Corrective Action: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal controls and facilitate segregation of duties best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review was also implemented in 2025.
2023-102 Lack of Documentation Related to Reporting (prior two years 2022-108 and 2021-104) (initially reported 2018) Assistance Listing Number: 93.224 and 93.527 Name of Federal Agency: Department of Health and Human Services, HRSA Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program Compliance Requirement: Reporting Pass-through Entity: N/A Federal Grant/Contract Number and Grant Year: H8006452 (2022 and 2023), H2E45500 (2022), COVID-19 ARP H8F40324 (2021), H8K49674 (2023), C1439909 (2020), H2E50094 (2023), COVID-19 H8L50549 (2023) and COVID-19 H8G48569 (2022) Finding Type: Significant Deficiency in Internal Control Questioned Costs: $0 Condition: The Organization did not maintain proper documentation in support of reporting requirements. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Also, under compliance requirements for reporting 2 CFR 200.328 states that information must be collected with the frequency required by the terms and conditions of the federal award for effective monitoring of the federal awards. Cause: Supporting records used to populate the Uniform Data System (UDS) report were not retained by the Organization. Effect: The Organization could submit incorrect information. Recommendation: Documentation should be prepared, reviewed, and retained to support the reporting. The documentation should clearly document who prepared the information, who reviewed the information, and that the reviewer considered whether the information was complete and accurate. Views of Responsible Officials and Planned Corrective Action: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal controls and facilitate segregation of duties best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review was also implemented in 2025.
2023-102 Lack of Documentation Related to Reporting (prior two years 2022-108 and 2021-104) (initially reported 2018) Assistance Listing Number: 93.224 and 93.527 Name of Federal Agency: Department of Health and Human Services, HRSA Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program Compliance Requirement: Reporting Pass-through Entity: N/A Federal Grant/Contract Number and Grant Year: H8006452 (2022 and 2023), H2E45500 (2022), COVID-19 ARP H8F40324 (2021), H8K49674 (2023), C1439909 (2020), H2E50094 (2023), COVID-19 H8L50549 (2023) and COVID-19 H8G48569 (2022) Finding Type: Significant Deficiency in Internal Control Questioned Costs: $0 Condition: The Organization did not maintain proper documentation in support of reporting requirements. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Also, under compliance requirements for reporting 2 CFR 200.328 states that information must be collected with the frequency required by the terms and conditions of the federal award for effective monitoring of the federal awards. Cause: Supporting records used to populate the Uniform Data System (UDS) report were not retained by the Organization. Effect: The Organization could submit incorrect information. Recommendation: Documentation should be prepared, reviewed, and retained to support the reporting. The documentation should clearly document who prepared the information, who reviewed the information, and that the reviewer considered whether the information was complete and accurate. Views of Responsible Officials and Planned Corrective Action: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal controls and facilitate segregation of duties best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review was also implemented in 2025.