Finding 1090342 (2024-003)

2024 – 003 – Reporting Grantor: Department of Health and Human Services Passthrough Agency: N/A Program Name: Community Project Funding/Congressionally Directed Spending - Construction Award Name: Congressional Directives Award Year: 2024 Award Number: 6 CE1HS47194-01-10 Assistance Listing Number: 93.493 Criteria 2 CFR 200.328 requires non-Federal entities to submit financial reports as required by the Federal award. Condition Per the award agreement, the Federal Financial Report for the period of September 1, 2022 to August 31, 2023 was required to be submitted before January 30, 2024. Through our testing of the reporting over the Congressional Directives award, we selected the one Federal Financial Report (“FFR”) required to be issued in FY24, which was for the period of September 1, 2022 to August 31, 2023. For the one selection tested, the Alliance did not submit the Federal Financial Report prior to the due date of January 30, 2024. The Alliance could not provide additional supporting documentation indicating there was any pre-approval or acknowledgement for submitting reports late as is required per the award agreement. Cause For the selection tested, the Alliance noted that there was a delay in setting up an authorized employee with the appropriate system access due to the internal review requirements for new users. As the delay in receiving employee’s clearance continued, another Alliance employee (an approved analyst) filed the FFR on February 5, 2024, after being requested to do so. Effect The Alliance did not submit the FFR within the appropriate period per the award agreement, within the due date of January 30, 2024. Therefore, the Alliance was not in compliance with reporting requirements. Questioned Costs None noted. Recommendation The Alliance should ensure that timely submission of reports is performed as stated within agreed-upon award agreements with Department of Health and Human Services. Management’s Views and Corrective Action Plan Please refer to the Alliance’s Management’s Views and Corrective Action Plan included at the end of this report for additional details.