Finding Text
Identification of the federal program: 21.027 - Coronavirus State and Local Fiscal Recovery Funds
Compliance finding over reporting and significant deficiency in internal controls related to reporting
Criteria:
In accordance with the grant agreement between El Programa Hispano Catolico and Multnomah County, the Organization is to submit internal financial statements and budget to actual no later than 30 days after June 30th and December 31 st. Additionally, they are to submit SUN Community School Mid-Year reports by January 31st and annual reports by July 17th. Finally, the Organization is to submit quarterly reports for outputs and outcomes related to unconditional client assistance and cash transfers no later than 15 days after quarter end.
Condition:
The Organization did not submit the internal financial statements, mid-year reports or three of the four quarterly reports timely to Multnomah County.
Cause:
Internal control processes and procedures were not in place to ensure required monthly reports were filed timely.
Effect:
Multnomah County relies on the internal financial statements, mid-year reports, annual reports and quarterly reports to monitor the activities of the Organization, and without these reports, Multnomah County cannot provide sufficient oversight of grant activities.
Questioned Costs:
None
Recommendations:
We recommend the Organization develop internal control processes and procedures to ensure reports are filed
timely.
Views of responsible officials:
We agree with the need for internal control processes and procedures to ensure both financial and programmatic reports are submitted timely. During the audited period, EPHC experienced staff turnover and vacancies. During this time there were limited accounting staff making timely monthly close challenging which caused delays in financial reporting. Finance team members are following these processes on a consistent basis beginning in fiscal year 2025.
EPHC has been delayed in completing financial audits due to complications from separating from Catholic Charities and challenges related to staff turnover and hiring talent. Due to this delay, EPHC was not able to provide internal financial statements. During the audited period, this was communicated with Multnomah County on multiple occasions. In fiscal year 2025, EPHC will communicate with Multnomah County the timeline for reporting internal financial statements and request their approval for delayed reporting. Quarterly reports for outputs and outcomes were often submitted within days of the required reporting date. Beginning in fiscal year 2025, program staff will submit by the due date as outlined in the contract.