Finding 1140855 (2024-005)

Criteria The Organization is required to submit request for payment reports by the end of the month following the month to be reimbursed per the grant agreement. Condition There are inadequate internal controls in place to ensure that the Organization’s financial reports are submitted to the grantor in a timely manner. Context For two of the three months tested, the Organization did not submit the monthly request for payment reports in a timely manner. Cause The Organization received verbal, undocumented, approval from the grantor to submit the monthly request for payment reports subsequent to the due date. Effect Failure to comply with reporting requirements can result in non-compliance with federal award terms, which may lead to questioned costs, potential withholding of future funds, or other administrative actions by the federal awarding agency. Questioned Costs None. Repeat Finding No. Recommendation We recommend that management review its reporting procedures to ensure compliance with the reporting requirements of the Uniform Guidance and grant agreements. Any verbal approvals from the grantor regarding untimely reporting should be documented between the Organization and grantor. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.