Finding Text
Criteria: Federal regulations award recipients to submit semi-annual and annual reports in accordance with
timelines defined in the award. Amounts reported are required to be complete, accurate and prepared in
accordance with the entity’s basis of accounting and be supported by financial statements and schedule of
expenditures of federal awards.
Condition: The Associations controls were not effective to ensure that reports were submitted timely and that
amounts reported were supported by adequate documentation.
• The December 31, 2023, final SF-425 for Contract #10CH01204403 was due April 30, 2024. A final report
was not provided; therefore we were unable to confirm if the report was filed in compliance with this
requirement.
• While the December 31, 2023, semi-annual SF-425 for Contract #10CH01204403 was submitted timely,
the Association was not able to provide documentation to support amounts reported.
• The final SF-425 for Contract #10HE00135801C5 was due October 30, 2023. While the report was
submitted timely, total expenses reported of $71,029 did not agree to final contract expenses per the
Association’s records of $70,477 (a difference of $552).
Questioned costs: None.
Context: Our procedures included testing four SF-429 (Real Property Status Reports) and four SF-425 (Federal
Financial Report) reports that were required as part of the grant contract provisions and federal reporting
requirements.
Cause: The Association experienced challenges in implementing a new financial reporting system in 2021 that
continued throughout the 2023 fiscal year. As a result, there was no reconciliation or support for amounts
reported.