Finding Text
Finding 2024-001: Federal Financial Reporting - Significant Deficiency
Information on the Federal Programs: Assistance Listing #93.652 Adoption Opportunities:
Administration for Children and Families
Criteria or Specific Requirement: §200.328 Financial reporting (c) states that “The recipient or
subrecipient must submit financial reports as required by the Federal award. Reports submitted
annually by the recipient or subrecipient must be due no later than 90 calendar days after the
reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar
days after the reporting period.”
Condition: As part of our compliance audit over APHSA’s financial reporting requirements under the
major program, we noted two instances in which a financial report was not submitted to the Federal
agency by the 30 calendar day deadline.
Cause: There was turnover in staffing at APHSA that impacted timely reporting.
Effect or Potential Effect: Late financial report submissions could result in payment withholding,
negative impact related to future funding, increased scrutiny by the federal agency, or ultimately
award termination.
Questioned Costs: None
Context: The population of quarterly reports for the major program was four. Late reporting was
noted for two of the four reports tested. The control deficiency is considered systemic in nature.
Identification as a Repeat Finding, If Applicable: Not applicable
Recommendation: We recommend that APHSA review its policies and procedures and strengthen
internal controls to ensure that all financial reports are submitted to the grantor by the deadlines
stipulated in the terms of the agreement.