Finding 1176623 (2025-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-05

AI Summary

  • Core Issue: The Association failed to submit one of two required semiannual progress reports on time.
  • Impacted Requirements: Reports must be submitted within 30 days after each reporting period to comply with federal guidelines.
  • Recommended Follow-Up: Establish formal policies and procedures to ensure timely tracking and submission of all performance reports.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Community Project Funding/Congressionally Directed Spending ‐ Construction Assistance Listing Number: 93.493 Federal Award Identification Number and Year: 6-CE1HS52375-07 - 2023 Award Period: September 30, 2023, through September 29, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance – Reporting • Other Matters Criteria or specific requirement: The federal award specifies that semiannual progress reports must be submitted within 30 days after the end of the reporting period. Condition: Evidence of untimely submission of semiannual progress reports was noted. Questioned costs: None. Context: Of the two samples selected for testing, we noted that one was not submitted timely. Cause: The Association did not have internal controls in place to ensure timely submission of semiannual progress reports. Effect: Failure to submit required progress reports within the 30 day deadline increases the risk that the Association may be viewed as noncompliant with federal reporting requirements. This noncompliance could affect future funding decisions, including potential delays, additional conditions, or other restrictions imposed by the federal awarding agency. Repeat Finding: N/A. Recommendation: We recommend that the Association implement formal policies and procedures requiring the tracking and submission of performance reports within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Community Project Funding/Congressionally Directed Spending ‐ Construction – Assistance Listing No. 93.493 Recommendation: We recommend that the Association implement formal policies and procedures requiring the tracking and submission of performance reports within the required timeframe. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The late submission of OARN's Semi-Annual Progress Reports is directly related to the current EHB report format. This format is challenging because it requires specific, unique answers for each of our 19 sites but only provides fields for 10. This limitation makes accurate and comprehensive reporting impossible, as the correct response is unique to each site. While we have collaborated with EHB to modify the format, the submission is still restricted to 10 sites. Consequently, for the most recent reporting period, we completed the electronic submission for the initial 10 sites and submitted a separate emailed document containing the progress information for the remaining 9 sites. Moving forward, until the report format is permanently changed, we plan to continue using this two-part submission strategy to ensure timely reporting. Name(s) of the contact person(s) responsible for corrective action: Lee McKenzie, OARN Grant Manager Planned completion date for corrective action plan: April 30, 2026

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 1176619 2025-002
    Material Weakness Repeat
  • 1176620 2025-003
    Material Weakness Repeat
  • 1176621 2025-004
    Material Weakness Repeat
  • 1176622 2025-005
    Material Weakness Repeat
  • 1176624 2025-007
    Material Weakness Repeat
  • 1176625 2025-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.493 Community Project Funding/Congressionally Directed Spending ‐ Construction $2.11M