Finding 1160053 (2023-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-10-06

AI Summary

  • Core Issue: Annual financial reports for the grant were submitted late and not reconciled with the general ledger.
  • Impacted Requirements: Timely submission and accurate reconciliation of financial status reports to the CDC are mandatory.
  • Recommended Follow-Up: Improve training for staff on federal grant reporting and establish a timeline to ensure compliance with submission deadlines.

Finding Text

Finding 2023-003: Grant Compliance and Related Reporting Federal Assistance Listing Number: 93.488 Name of Federal Program or Cluster: National Harm Reduction Technical Assistance and Syringe Services Program (SSP) Monitoring and Evaluation Funding Opportunity Agency: U.S. Department of Health and Human Services: Centers of Disease Control and Prevention Criteria: Management is required to submit annual financial reports for each year of the contract to report disbursements to the grantor. Condition: Financial status reports submitted to CDC to report use of grant funds awarded were not reconciled to the financial records of spending related to the respective grant in the general ledger and submitted by the due dates specified in the grant agreement. Context: One of the grants, containing funding from the federal program assistance listing number 93.488 - National Harm Reduction Technical Assistance and Syringe Services Program (SSP) Monitoring and Evaluation Funding Opportunity had the following: 1. The Annual Federal Financial Report was submitted after the due date. Cause: NHRC had a turnover in senior management and staff who were knowledgeable about the federal grant reporting requirements. Effect: NHRC completed and submitted the late submission of the single audit reporting package after the specified due date. Questioned Costs: None.

Corrective Action Plan

Finding: 2023-003 – Grant Compliance and Related Reporting. Action Taken: The National Harm Reduction Coalition (NHRC) leadership takes the findings seriously and concurs with the critical importance of timely and accurate financial reports. NHRC acknowledges that significant turnover and vacancies within the finance department, including the Senior Finance & Compliance Lead and other key leadership positions within the organization is the primary cause of the finding. NHRC also acknowledges the impact of the trickle-down effect of delays in prior fiscal year and continues to diligently address and improve the performance shortfall. In response to the audit finding, we have initiated corrective actions to address the identified deficiency as follows: 1. NHRC Hired a Senior Finance and Compliance Lead 2. Developed and implementing a closing process to ensure timely financial reporting, supporting NHRC’s ability to adhere to timely compliance reporting requirements. 3. We hired consultants to support the processing and review of financial records to ensure / improve timely and accurate financial reporting until we can hire additional staff.

Categories

Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 1160050 2023-003
    Material Weakness Repeat
  • 1160051 2023-003
    Material Weakness Repeat
  • 1160052 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.940 Hiv Prevention Activities Health Department Based $2.50M
93.136 Injury Prevention and Control Research and State and Community Based Programs $328,020
93.959 Block Grants for Prevention and Treatment of Substance Abuse $216,963
93.834 Capacity Building Assistance (cba) for High-Impact Hiv Prevention $116,970
93.788 Opioid Str $67,724
93.488 National Harm Reduction Technical Assistance and Syringe Services Program (ssp) Monitoring and Evaluation Funding Opportunity $57,989
93.270 Viral Hepatitis Prevention and Control $38,900
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $35,333