Finding 1204634 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396395
Organization: La Rabida Children's Hospital (IL)
Auditor: RSM US LLP

AI Summary

  • Core Issue: The Hospital submitted the Federal Financial Report (FFR) late, missing the December 28, 2025 deadline by submitting it on January 7, 2026.
  • Impacted Requirements: Compliance with Uniform Guidance and grant agreement terms requiring timely submission of financial reports.
  • Recommended Follow-Up: Improve controls over federal reporting to ensure timely preparation, review, and submission of reports, addressing any technical access issues promptly.

Finding Text

Finding 2025-001—Reporting Federal Program: Substance Abuse and Mental Health Services Projects of Regional and National Significance ALN: 93.243 Federal Awarding Agency: U.S. Department of Health and Human Services Federal Award Identification Number: 5H79SM084857-04 Criteria: Uniform Guidance and the applicable grant agreement require non-Federal entities to submit required financial reports, including the Federal Financial Report (FFR), in accordance with the frequency and due dates specified in the award terms. Per the grant agreement, financial reports are required to be submitted no later than 90 days after the end of each budget period. Condition: For the budget period ended September 30, 2025, the FFR was required to be submitted by December 28, 2025; however, the Hospital did not submit the FFR until January 7, 2026, which was after the required due date. Cause: The Hospital did not finalize the FFR until after the report due date and subsequently experienced technical issues related to access within the federal reporting portal, which delayed submission of the final, signed report. Effect or Potential Effect: Failure to timely submit required financial reports may result in delayed reimbursement, increased federal oversight, or other enforcement actions by the federal awarding agency. Questioned Costs: None Recommendation: The Hospital should enhance controls over federal reporting deadlines to ensure required reports are prepared, reviewed and submitted timely in accordance with grant requirements. Views of Responsible Officials and Planned Corrective Action: Management acknowledged the late submission of the FFR and indicated that corrective actions will be implemented to ensure reports are prepared in advance of due dates and to address system access issues timely to ensure future reports are submitted in accordance with federal requirements. Repeat Finding: No

Corrective Action Plan

Finding 2025-001: Reporting - ALN 93.243 Finding: For the budget period ended September 30, 2025, the FFR was required to be submitted by December 28, 2025; however, the Hospital did not submit the FFR until January 7, 2026, which was after the required due date. Contact Person: Anthony McWhorter, Vice President of Finance Corrective Action Planned: La Rabida Children's Hospital will implement procedures to ensure all required federal financial reports are prepared and finalized in advance of established due dates. Management will also perform periodic access reviews of federal reporting portals to confirm that appropriate personnel have timely access to submit required reports. Anticipated Completion Date: Implemented as of the fiscal year ended June 30, 2026.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $383,128
16.575 CRIME VICTIM ASSISTANCE $227,534
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $193,923
93.669 CHILD ABUSE AND NEGLECT STATE GRANTS $89,827
16.758 IMPROVING THE INVESTIGATION AND PROSECUTION OF CHILD ABUSE AND THE REGIONAL AND LOCAL CHILDREN'S ADVOCACY CENTERS $46,858
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $10,953
93.643 CHILDREN'S JUSTICE GRANTS TO STATES $2,202
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $2,000