Finding Text
Finding 2025-002 – Internal Controls over Compliance and Compliance with Reporting Requirement (Current and Prior Period Finding) Federal Agency: U.S. Department of Health and Human Services Federal program title: Healthy Marriage and Responsible Fatherhood Assistance Listing Number: 93.086 Type of Finding: Significant Deficiency over Internal Control over Compliance and Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal controls over the federal awards that provides assurance that the entity is managing the federal awards in compliance with federal statues, regulation and conditions of the federal awards. Condition and Context: During the audit, it was noted the Organization submitted required SF-425 reports past their due date according to the grant agreements. The Organization also does not have a process of reviewing the required reporting before submitting to the grantor. Questioned Costs: None noted Effect: Without adequate internal controls in place to ensure reports are submitted and reviewed timely, the Organization could be noncompliant with the reporting requirement. Cause: The delays and absence of a review process were attributed to a lack of adequate staffing within the Organization’s finance function that caused delays in compiling and submitting the required reporting as well as the lack of review over the reporting. Recommendation: We recommend that the Organization implement a procedure to track reporting due dates and implement a process in place to ensure reporting is reviewed and submitted within the due dates prescribed by the grants. Grantee Comment: Management agrees with the finding and has prepared a corrective action plan.