Finding 1163616 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-08

AI Summary

  • Core Issue: The Annual Project Performance Report for grant OK 769-B16 was submitted late, violating compliance requirements.
  • Impacted Requirements: Reports must be submitted by January 31 each year as per USDA agreement Section 5.7.
  • Recommended Follow-Up: Implement a tracking system for reporting deadlines to ensure timely submissions for all grants.

Finding Text

Federal Program Information: Funding Agency: Department of Agriculture Title: Rural Utilities Service Distance Learning & Telemedicine Grants Assistance Listing Number: 10.855 Award year and Number(s): OK 769-B16 Pass-through entity: Not applicable Type of Finding: Significant Deficiency in internal control over compliance (reporting) Criteria or Specific Requirement: In accordance with OK 769-B16 USDA agreement Section 5.7, the Annual Project Performance Activity Report is due “no later than January 31st of the following year in which all or any portion of the Grant is first advanced and continuing in subsequent years until completion of the Project…” Condition: We reviewed the submission dates for the OK 769-B16 and the OK 769-C16 grant reports. Out of the two grants, we noted the OK 769-B16 Annual Project Performance Report was filed later than the January 31st deadline. Questioned Costs: None. Context: On March 20, 2025, the Organization submitted the Annual Project Performance Report to the United States Department of Agriculture, which was due on January 31, 2025. Effect: The Organization was not in compliance with the reporting requirements of the noted program. Cause: The Organization does not have an internal control system designed to ensure all reports are submitted by the required date. Recommendation: We recommend that the Organization establish a process when obtaining a new grant to identify and track reporting requirements to ensure reports are submitted in a timely manner. Department’s Response: See accompanying Corrective Action Plan.

Corrective Action Plan

Action to be taken in response to the finding: To ensure timely submission of all required federal grant reports, the following procedures will be implemented immediately: 1. Centralized Federal Reporting Calendar ○ All federal grant reporting deadlines will be entered into a shared compliance calendar maintained by the grants team. ○ Reminder alerts will be scheduled for 30 days, 14 days, and 7 days before each reporting deadline.2. Assignment of Responsible Parties ○ Primary Responsible Staff: Dr. Jenny Jasper (CFO) will be responsible for preparing and submitting all federal grant reports. ○ Secondary Reviewer: Adrian Lovett (Operations Director) will review each report for accuracy and ensure that deadlines are met. ○ This dual responsibility ensures continuity in case of staff absence. 3. Internal Early Deadline Requirement ○ All federal reports must be completed and ready for review no later than five business days prior to the official deadline. ○ This internal buffer will allow time for revisions, approval, and confirmation of submission. 4. Verification and Documentation of Submission ○ Both the primary and secondary staff members will verify that the report has been successfully submitted in the federal reporting system. ○ Submission confirmations will be saved in a designated grants compliance folder as part of our official record. Management view of the finding: We recognize the importance of timely and accurate submission of all federal grant reports. The delay identified in the audit does not reflect our expectations for compliance, and we are committed to implementing corrective measures to prevent recurrence. Therefore, we do not disagree with the finding.

Categories

Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
84.282A CHARTER SCHOOLS $3.42M
10.855 DISTANCE LEARNING AND TELEMEDICINE LOANS AND GRANTS $1.76M