Finding Text
Condition: During the audit, it was noted that the Organization failed to submit the required semiannual progress report to the granting agency. The report was not submitted by the deadline specified in the award terms, and no documentation was available to support that an extension was requested or granted Criteria: Entities must submit performance and financial reports as required by the terms of the federal award. These reports must be accurate, complete, and submitted timely. Cause: The failure to submit the required report was due to a breakdown in internal controls over the reporting process. Specifically, staff responsible for grant reporting were unaware of the reporting deadlines and requirements, and no secondary review or monitoring process was in place to ensure timely and accurate submission. Effect: Non-submission of required reports may result in noncompliance with federal award terms, delayed reimbursements, or potential suspension of funding. It also impairs the granting agency’s ability to monitor the financial performance and compliance of the program. Recommendation :Management should strengthen internal controls over grant reporting by implementing a tracking system for report due dates, assigning clear responsibilities, and conducting periodic reviews to ensure compliance. Staff should receive training on Uniform Guidance reporting requirements and the specific terms of each federal award.