Finding 1215734 (2025-001)

Material Weakness Repeat Finding
Requirement
G
Questioned Costs
-
Year
2025
Accepted
2026-05-28

AI Summary

  • Issue: FFR reports were not submitted on time, violating federal requirements.
  • Impact: The organization failed to meet the 90-day deadline for filing Federal Financial Reports under the SAMHSA program.
  • Recommendation: Enhance control measures to ensure timely reporting, especially during staff turnover.

Finding Text

2025-001: Significant Deficiency – Timely FFR Reporting Criteria: Under the U.S. Department of Health and Human Services Substance Abuse and Mental Health Services program (93.243), the Organization is required to file Federal Financial Reports (“FFR”) within 90 days of period close out date. Condition: Audit procedures related to reporting identified the FFR reporting under this program were not filed timely during the period under audit. Cause: While the organization maintained a properly designed control to track the timely submission of Federal Financial Reports (FFRs), the control was not sufficiently robust to provide proactive escalation during a period when the finance department experienced capacity constraints due to staff turnover. Effect: As a result of this control not operating effectively, the annual FFR under the Substance Abuse and Mental Health Services Administration (SAMHSA) program was submitted after the required deadline. Recommendation: We recommend management improve the control design to provide for proactive escalation during any periods of turnover to prevent this late reporting from recurring. Management Response: The Organization concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.

Corrective Action Plan

Corrective Action Plan This corrective action plan was developed in response to the audit finding related to the timely submission of Federal Financial Reports (FFRs). The purpose of this plan is to improve the controls that were previously in place to ensure FFRs are filed accurately and by required deadlines. Finding While the audit noted that the control for tracking the timely submission of Federal Financial Reports (FFRs) under the Substance Abuse and Mental Health Services program could have been more robust at the time of reporting, it is important to recognize that this was an isolated administrative oversight rather than a systemic control failure. The organization has a strong history of compliance, as evidenced by its unmodified (clean) audit opinion, absence of material weaknesses or significant deficiencies in internal control over financial reporting, and its classification as a low-risk auditee. There were no questioned costs, penalties, or loss of funding associated with this issue, and all other compliance requirements for federal programs were met. Corrective Action The existing process has been improved to track FFR due dates and support timely submission. This process includes the use of Grantseeker, a grant tracking system that provides automated daily email reminders beginning two weeks prior to each submission deadline. Each reporting task is assigned to the staff member responsible for completion of the filing. Oversight and Monitoring Oversight of the process is provided by a Grantseeker system administrator, who monitors task assignments and reminder notifications to help ensure reporting deadlines are met. This additional level of review supports accountability and helps confirm that required filings are completed in a timely manner. Responsible Party The staff member assigned to the specific grant is responsible for preparing and submitting the applicable FFR. The Grantseeker system administrator is responsible for oversight of the tracking process. Expected Outcome Implementation of this corrective action is expected to strengthen internal controls over grant reporting and ensure timely submission of all required Federal Financial Reports.

Categories

Reporting

Other Findings in this Audit

  • 1215732 2025-001
    Material Weakness Repeat
  • 1215733 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
64.033 VA SUPPORTIVE SERVICES FOR VETERAN FAMILIES PROGRAM $10.34M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.18M
17.280 WIOA DISLOCATED WORKER NATIONAL RESERVE DEMONSTRATION GRANTS $680,353
14.235 Supportive Housing Program $560,938
64.055 STAFF SERGEANT PARKER GORDON FOX SUICIDE PREVENTION GRANT PROGRAM $556,887
93.788 OPIOID STR $540,554
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $418,763
14.267 CONTINUUM OF CARE PROGRAM $394,237
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $377,740
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $282,290
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $244,992
17.805 HOMELESS VETERANS€™ REINTEGRATION PROGRAM $200,803
93.940 HIV PREVENTION AND SURVEILLANCE ACTIVITIES-HEALTH DEPARTMENT BASED $158,930
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $138,474
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $113,959
16.575 CRIME VICTIM ASSISTANCE $72,931