Finding Text
Type of Finding: Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance Federal Agency: U.S. Department of Defense Federal Program Name: Conservation and Rehabilitation of Natural Resources on Military Installations Assistance Listing Number: 12.005 Federal Award Identification Number and Year: H79TI083313 - 2020 Award Period: September 28, 2020 through September 27, 2025 Criteria or specific requirement: 2 CFR 200.329(c)(1) states that “the non-federal entity must submit performance reports at the interval required by the Federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity”. Per the award agreement for contract W912DW-20-2-0003, "Recipient shall submit to the Agreement Administrator progress reports on a quarterly basis. Reports are due no later than 30 days following the end of each reporting period”. Condition: One of two quarterly performance progress reports (SF-PPR) tested was not submitted timely. The report was due within 30 days of June 30, 2024, but was not submitted until August 14, 2024. Questioned costs: None. Context: CLA tested two of four SF-PPRs due during the audit period. One of these reports was submitted 14 days after the submission due date. Cause: Late filing is due to a lack of adherence to the due dates as defined within the contract terms. The Organization does not have adequate controls in place to ensure timely report submissions. Effect: Not filing reports on a timely basis can present risks, such as outdated and unreliable information or the inability to detect potential fraud or irregularities. In addition, delayed reports can impede regulatory authorities' ability to monitor compliance, detect patterns or trends, and assess risks in a timely manner. Repeat finding: The finding is a repeat of a finding in the immediate prior year. The prior year finding number was 2023-004. Recommendation: CLA recommends for the Organization to place emphasis on stronger controls around the timely filing of required reports, such as retaining a monthly checklist of required reconciliations and reports. Views of responsible officials: There is no disagreement with the audit finding.