Finding 1156134 (2024-001)

Information on the Federal Program: Assistance Listing Number 93.676 - Unaccompanied Children Program, U.S. Department of Health and Human Services. Compliance Requirement: Reporting. Type of Finding: Material noncompliance and significant deficiency in internal control over compliance. Criteria: Program requirements state that annual federal financial reports are required to be submitted no later than 90 days after the end of each budget period. Condition: Three annual federal financial reports for budget periods ending in 2024 were not submitted by the required due date. Cause: The Organization lacked a process to ensure timely submission of annual federal financial reports. Effect or Potential Effect: As stated in the agreements, failure to comply with reporting requirements is considered to be a breach of the agreement and cash payments may be withheld until the reports are submitted. Questioned Costs: None Context: Three out of the four annual federal financial reports that were due to be filed during 2024 were not submitted timely. Recommendation: We recommend that the Organization develop a process to ensure submission of the annual federal financial reports within the prescribed timeframe. Views of Responsible Officials: Management understands that annual federal financial reports (FFR) are required to be submitted no later than 90 days after the end of each budget period. In order to ensure compliance, management will delegate responsibilities for completing all FFR reports to the newly established office of Chief Financial Officer (CFO). The CFO will be responsible for reading the Notice of Awards and calendaring out all FFR due dates for timely completion. The CFO was hired in part to focus on activities such as these to ensure sustainable compliance in all areas related to federal grant awards.