Finding 1176638 (2025-006)

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

AI Summary

  • Core Issue: The Agency failed to submit required financial reports on time, including an annual report submitted five months late and a missing quarterly report.
  • Impacted Requirements: Non-compliance with financial reporting requirements under Unaccompanied Alien Children program (Assistance Listing No. 93.676).
  • Recommended Follow-Up: Implement a checklist for timely report submissions; management agrees and plans to establish new procedures by March 31, 2026.

Finding Text

Financial and Performance Reporting Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: Compliance under Unaccompanied Alien Children (Assistance Listing No. 93.676): Financial Reporting Requirements, submission of SF-425, Federal Financial Report. Statement of Condition: During our testing of compliance with the submission of the SF-425, Federal Financial Report, we noted that the annual report that was due July 30, 2025 was submitted on December 5, 2025. The quarterly report that was due on July 30, 2025 was submitted on August 20, 2025. The quarterly report that was due on October 30, 2025 has not been submitted at the time of this report. Statement of Cause: The Agency did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates. Statement of Effect: The Agency is not in compliance with the reporting requirements under the grant agreement. Questioned Cost: None Perspective Information: Review of timely submission of reporting is performed as part of the audit procedures. Repeat Finding: Yes Recommendation: We recommend the Agency implement a procedure or checklist to ensure that the required reports are completed and submitted by the required due dates. Views of the Responsible Officials and Planned Corrective Actions. The Agency’s management agrees with this finding and is committed to the development of a solid internal control system that will enable timely reports to government sources. The Agency, under the oversight of newly hired Controller, Kimberly Houghton-Bryan, will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676. Controller Houghton-Bryan is to implement the checklist by March 31, 2026, to ensure that regulatory reporting is prepared in timely manner.

Corrective Action Plan

The Agency's management agrees with this finding and is committed to the development of a solid internal control system that will enable timely reports to government sources. The Agency under the oversight of newly hired Financial Controller Kimberly Houghton-Bryan will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676. Financial Controller, Kimberly Houghton-Bryan, is to implement the checklist by March 31, 2026, to ensure that regulatory reporting is prepared in timely manner.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1176637 2025-006
    Material Weakness Repeat
  • 1176639 2025-007
    Material Weakness Repeat
  • 1176640 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.676 UNACCOMPANIED CHILDREN PROGRAM $856,435
10.553 SCHOOL BREAKFAST PROGRAM $6,521
10.555 NATIONAL SCHOOL LUNCH PROGRAM $2,745