Finding 2024-003 | Untimely Submission of Financial Status Reports — State Services HIV/SRVS Program Significant Deficiency in Internal Control over Compliance | Contract HHS001317000004 | First-Time Finding Finding Number: 2024-003 Planned Completion Date: June 30, 2025 Responsible Official(s): Josafat Saldivar, Fiscal Officer (primary); Juan E. Rodriguez, Executive Director (oversight and approval) Agency Response: STDC acknowledges the finding. FSR #1 under Contract HHS001317000004 (State Services — HIV/SRVS) for the period September 1, 2023 through February 29, 2024 was submitted on April 22, 2024, 22 days after the March 31, 2024 contractual due date required under Contract Attachment B §C. STDC concurs that the late submission constitutes noncompliance with the contract's reporting requirements. Finding 2024-003 shares the same root cause as Finding 2024-001: the absence of a formal, cross-program FSR submission calendar with assigned responsibility and advance reminder controls, compounded by the Fiscal Officer being new to the role during FY2024, and recovery efforts following the ransomware attack. Because both findings share a common root cause, STDC has designed a single integrated corrective action that will address both findings simultaneously through implementation of a cross-program FSR Submission Calendar covering all active federal and state contracts. Corrective Actions to Be Implemented: The corrective actions for Finding 2024-003 are the same as those described for Finding 2024-001. A single cross-program FSR Submission Calendar will be implemented to address both findings. The steps are provided below for reference. Action 1 (Target: April 30, 2025): Develop a formal, written FSR Submission Calendar covering all active federal and state programs, including State Services Contract HHS001317000004. The calendar will identify each FSR period, the contractual due date, the assigned responsible staff member, and advance reminder dates at 30 days and 7 days prior to each deadline. Action 2 (Target: April 30, 2025): Configure automated calendar reminders (Outlook or equivalent) for each FSR due date and each advance reminder date for all programs, including State Services. Reminders will be sent to the Fiscal Officer and the Executive Director. Action 3 (Target: May 15, 2025): Present the completed FSR Submission Calendar to the Executive Director for review and written approval. Retain the signed calendar in the grants compliance files and update it at the start of each new contract year. Action 4 (Target: May 31, 2025): Beginning in May 2025, include FSR submission status for all programs, including State Services, as a standing agenda item in the monthly Fiscal Officer report to the Executive Director. Action 5 (Target: June 30, 2025): Conduct a cross-training session with at least one backup staff member to ensure continuity of FSR submission across all programs in the event of staff absence or turnover. Monitoring and Evaluation: Monthly FSR status reports to the Executive Director will verify that all financial reports across all programs, including State Services, are submitted on or before contractual due dates. The FSR Submission Calendar will be reviewed and updated annually at the start of each contract year.