Finding Text
2025-001 – Pathways, AL# 17.270, Reporting Condition The quarterly progress report for the period ending September 30, 2024 was submitted late on December 20, 2024. It was due on November 15, 2024. Criteria Under the grant requirements, the Organization is required to submit quarterly reports no later than 45 days past the reporting period end. Cause Management did not submit the report timely. Effect The quarterly report for the period ending September 30, 2024 was submitted late. Questioned Cost Amount $-0- Perspective Information An exception was noted for one of the two reports selected for testing, from a total population of four reports.Repeat Finding N/A Recommendation Management should take steps to ensure that all required reports are filed timely. View of Responsible Officials and Planned Corrective Action We acknowledge that the quarterly report for the period ending September 30, 2024, was submitted after the required due date of November 15, 2024. However, the delay was not due to a failure to prepare the report in a timely manner, but rather resulted from a reporting system constraint caused by an incorrect drawdown. The report was completed and ready for submission on November 14, 2024. At that time, it was identified that cash receipts exceeded expenditures due to an incorrect drawdown that had been mistakenly applied to the program. This discrepancy prevented submission through the Payment Management System (PMS) until the issue was resolved. The incorrect drawdown was subsequently reclassified to the appropriate program by a TAP finance team member on November 14, 2024. On November 15, 2024, management notified the Department of Labor, Project Officer, of the issue and the resulting inability to submit the report while the system correction was pending. Although the adjustment had been made, the submission remained delayed because the PMS had not yet updated to reflect the correction. As of November 18, and November 21, 2024, the PMS still had not been updated, and the report could not be submitted despite continued monitoring and follow-up communications; additional communication was received from the Project Officer regarding the issue, on December 3, 2024, and we responded, noting that submission would likely be possible once activity for the next reporting period (quarter ending December 31, 2024) was reflected in the system. Corrective Action and Prevention Measures: To prevent recurrence, we will implement the following actions: • Monthly reconciliation of drawdowns and PMS records to ensure expenditures and receipts are properly aligned and discrepancies are identified promptly. • Pre-submission reconciliation checklist to verify drawdowns, expenditures, and PMS balances prior to report submission. • Enhanced coordination with finance staff to ensure all drawdowns are accurately charged to the correct program at the time of posting. • Formal escalation process for unresolved PMS or federal reporting system issues to ensure timely resolution with the federal agency. • Earlier internal reporting deadlines to allow sufficient time for review and resolution of any discrepancies prior to federal due dates. • Documentation retention procedures to ensure all communications, PMS discrepancies, and resolution steps are maintained to support audit review. • Ongoing training/refresher guidance for finance and program staff on drawdown procedures and federal reporting requirements.