Finding Text
The AAIHB did not submit its Federal Financial Reports by the required due dates. Uniform Guidance requires that AAIHB complete the Federal Financial Reports quarterly to report cumulative expenses incurred under each grant number. These reports must be submitted no later than 30 calendar days after the reporting period. The AAIHB is not in compliance with federal award requirements and could jeopardize future federal funding. The AAIHB was unable to complete the final trial balance and SEFA due to several factors, including late invoice submissions from subawardees, delays in completing bank reconciliations, and missing documentation for direct debit entries. In addition, accounts receivable were not recorded timely because certain programs did not provide copies of billing invoices for contractual services rendered. The situation was further affected by staff turnover in a key finance position and the ongoing operational challenges resulting from the COVID-19 pandemic. We recommend that the AAIHB implement procedures to ensure the completion of all Federal Financial Reports in a timely manner.