Finding Text
2023-004 Reporting for U.S. DHHS 94.432 ACL Centers for Independent Living (Material
Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Centers for Independent Living reporting standards require the filing of annual Federal
Financial Report (SF-425) under grant 2101MEILCL-00 for year ended September 29, 2022 by
January 28, 2023, annual Federal Financial Report (SF-425) under grant 2001MEILC3-00 for
year ended September 30, 2022 by October 30, 2022, and final Federal Financial Report (SF-
425) under grant 2001MEILC3-00 for year ended September 30, 2022 by December 29, 2022.
In addition, reporting standards require that these reports be accurately completed
Condition and Context: Audit procedures noted that all three of these reports were filed late. In
addition, the 2001MEILC3-00 grant reports were completed inaccurately as they showed all
$931,640 of the grant funds as fully expended with no cash on hand, when there was $393,081
of cash on hand, $376,286 of unliquidated obligations, and total expenditures and obligations
were only $800,354.
Cause: There is limited staffing in the finance department, there is a lack of understanding the
instructions for the SF-425 Report, and lack of understanding of allowable costs and appropriate
period of performance for the 2001MEILC3-00 grant.
Effect: The reports were filed 30 days late, 120 days late, and 60 days late. In addition, the
awarding agency was not fully informed of the activity on these grants.
Recommendation: Management should strengthen their controls for the tracking of required
report filings and their due dates. It should implement additional controls to ensure all are filed
on time. The controls should account for the possible loss of key personnel responsible for filing
and have a process to mitigate this risk. In addition, management should consider training for
staff tasked with completing, reviewing, and filing these reports.
Views of Responsible Officials and Planned Corrective Actions: Management will add a process
to ensure all report deadlines are tracked in calendars for individuals responsible, with multiple
reminders regarding deadlines. In addition, management will consider sending key reporting
staff to training on the Federal Financial Report (SF-425).