Finding 1165619 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-19

AI Summary

  • Core Issue: The SF-425 report was not submitted on time and lacked documented review and approval.
  • Impacted Requirements: Timely submission and review processes for federal reporting were not followed, risking compliance with grant agreements.
  • Recommended Follow-up: Establish a formal process for timely preparation, review, and documentation of all required reports to meet deadlines.

Finding Text

Finding: 2025-001 Significant Deficiency over reporting requirements U.S. Department of Health and Human Services Pass-through Entity: Centers for Disease Control and Prevention Program Name: The Innovative Cardiovascular Health Program Grant DP23-0005 Federal Assistance Listing Number: 93.426 Criteria: A well-defined financial reporting process ensures required reports are reviewed and submitted to the granting agency timely. Condition: The Federal Financial Report, commonly referred to as an SF-425 report, was prepared by the Finance team; however, it was not submitted timely before the required due date and the process did not require a documented review and approval of the SF-425 report prior to submission, resulting in late submission of the report and corrections requested by the granting agency. Context: The SF-425 report was prepared by the Organization, and discussions were held with members of management prior to submission; however, ultimate approval of the report for submission was not documented prior to submission of the report. In addition, the report was not submitted timely within a 90-day period provided by the granting agency. The Schedule of Expenditures of Federal Awards was not affected by these matters. Effect: Grant reports may not be submitted timely. Cause: The Organization did not have a formal process in place for a separate preparer and reviewer of the report to be formally documented or a process to ensure timely submission of reports in accordance with the grant agreement. Recommendation: We recommend that the Organization implement a process to ensure that all reporting requirements and applicable deadlines are known by management, to ensure that steps are being taken to prepare, review, and submit all required documentation by set deadlines. In addition, we recommend that the Organization implement a process to ensure that any reviews performed over these reports are properly documented. Managements Response: See Corrective action plan. Proposed Completion Date: December 31, 2025

Corrective Action Plan

Corrective Action Plan Finding: Grant Form Federal Financial Form Timeliness and Review Process Corrective Action: Constellation Quality Health is strengthening its process for preparing and submitting the annual Federal Financial Report (FFR) to ensure timely submission and appropriate review prior to filing. A formal review procedure has been established requiring that the FFR be prepared by the Director of Finance and reviewed by the Chief Financial Officer prior to submission. The reviewer will verify the accuracy of reported expenditures, confirm reconciliation to the general ledger, and document approval through a signed review checklist. Additionally, a grant reporting calendar will be maintained to track submission deadlines. The calendar includes reminders at least 20 days prior to each due date to prevent delays in filing, as well as reminders to verify post-filing approval by the agency. This corrective action will be implemented no later than November 5, 2025. Cheryl Powell, Director of Finance Kenneth McCosh, Chief Financial Officer

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
93.426 THE NATIONAL CARDIOVASCULAR HEALTH PROGRAM $924,161