Finding 1158053 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 370001
Organization: Hannas House (CA)

AI Summary

  • Core Issue: The Organization submitted five SF PPR and four SF 425 reports late, risking federal funding and future award eligibility.
  • Impacted Requirements: Compliance with quarterly reporting deadlines as per Assistance Listing Number 93.676 and the OMB Compliance Supplement.
  • Recommended Follow-Up: Implement a reporting calendar, assign multiple staff for submissions, and conduct quarterly compliance reviews to ensure timely reporting.

Finding Text

Finding SA 2024-001 Reporting: Untimely Submissions of Standard Form Performance Progress Report (SF PPR) and Standard Form Federal Financial Report (SF 425) (Significant Deficiency) Federal Program Information Assistance Listing Number: 93.676 Federal Program Title: Unaccompanied Children Program Federal Agency: U.S. Department of Health and Human Services Passed Through Entity: Not Applicable Federal Award Numbers: 90ZU0440-02-00, 90ZU0440-02-01 and 90ZU0440-03-00 Project Name: Residential Shelter and or Transitional Foster Care Services for Unaccompanied Children Licensed and Texas Exempt and Florida delicensed only Compliance Requirement: Reporting Criteria Per the requirements of Assistance Listing Number 93.676, Unaccompanied Children Program, and as outlined in the OMB Compliance Supplement and the Notice of Award (NoA), recipients must submit the SF PPR (Program Progress Report) and SF 425 (Federal Financial Report) on a quarterly basis for each budget period. The SF PPR must include programmatic information for the applicable period, with a cumulative final report due within 90 days after the end of the project period, including any authorized extension periods. The SF 425 must reflect the financial activity for the reporting period and be submitted within the prescribed deadlines. All required SF PPR and SF 425 reports must be submitted electronically in GrantSolutions and Payment Management System (PMS) site, respectively, as specified in the NoA. Condition The Organization submitted five SF PPR and four SF 425 reports beyond the due dates. The Organization indicated that the annual SF PPR report was submitted on time on September 30, 2024. However, supporting email correspondence could not be located. Accordingly, the submission date in this finding reflects the date the report was later uploaded to the GrantSolutions website which is September 29, 2025. Per inquiry with Patrick Rajasingam, Director of Development, for the SF 425 reports for Q1 and Q2 of 2024, the Organization was unable to certify submissions due to a system issue within the PMS. The Organization maintained ongoing correspondence with both the grantor and PMS administrators between June 2023 and February 2024 to document the issue. Once the certification function was restored in September 2024, the Organization promptly submitted the outstanding reports. Copies of the related email communications have been provided for auditor review. For the remaining reports, delays were primarily due to additional time required for compiling, reconciling, and reviewing the programmatic and financial information prior to submission. Effect Failure to comply with the required reporting deadlines increases the risk of delayed, restricted, or reduced federal funding. Noncompliance with these requirements may also affect the Organization’s eligibility for future federal awards. Questioned Costs None Recommendation We recommend that the Organization improve its reporting process by setting earlier internal deadlines, keeping clear records of communications with the grantor and system administrators, and requesting waivers when delays are caused by system issues outside the Organization’s control. These steps will help ensure reports are submitted on time and in line with Compliance Supplement and the NoA requirements. Views of responsible officials and planned corrective actions Management acknowledges the importance of timely and accurate federal reporting and recognizes that system barriers and internal processes must be addressed to ensure compliance. They are committed to maintaining proactive communication with federal partners and implementing internal controls to prevent recurrence. The following are the planned correction actions from the Organization: • Establish a comprehensive reporting calendar with automated reminders to ensure all deadlines are met. • Assign multiple staff with responsibility for report submissions to provide redundancy. • Conduct quarterly compliance reviews by finance and executive leadership to verify timely reporting. Personnel responsible for implementation: Connie Franks, Chief Executive Officer and Aaliyah Rajasingam, Chief Operating Officer Date of implementation: September 23, 2025 – All corrective actions are effective immediately and will ensure consistent compliance with federal reporting requirements going forward.

Corrective Action Plan

Management acknowledges the importance of timely and accurate federal reporting and recognizes that system barriers and internal processes must be addressed to ensure compliance. They are committed to maintaining proactive communication with federal partners and implementing internal controls to prevent recurrence. The following are the planned correction actions from the Organization: • Establish a comprehensive reporting calendar with automated reminders to ensure all deadlines are met. • Assign multiple staff with responsibility for report submissions to provide redundancy. • Conduct quarterly compliance reviews by finance and executive leadership to verify timely reporting. Personnel responsible for implementation: Connie Franks, Chief Executive Officer and Aaliyah Rajasingam, Chief Operating Officer Date of implementation: September 23, 2025 – All corrective actions are effective immediately and will ensure consistent compliance with federal reporting requirements going forward.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
93.676 Unaccompanied Children Program $8.62M
93.558 Temporary Assistance for Needy Families $91,109
93.658 Foster Care Title IV-E $17,555
93.659 Adoption Assistance $12,000