FAC Explorer

Finding 1218810 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-25
Audit: 404891
Organization: NORTHSIDE ECONOMIC OPPORTUNITY NETWORK (MN)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The Organization failed to file the required SF-425 Federal Financial Report and performance report for 2025.
  • Impacted Requirements: This non-compliance violates the federal award agreement's reporting requirements.
  • Recommended Follow-Up: Management should review the reporting requirements and ensure all necessary reports are submitted on time.

Finding Text

Finding – Reporting – Congressional Grants; Assistance Listing Number 59.059; 9/1/22-8/31/27 Award Period, U.S. Small Business Administration Criteria or Specific Requirement Recipients must use the standard financial reporting forms or such other forms as may be authorized by OMB when reporting to the federal awarding agency. Each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. Financial reporting requirements for cost reimbursement contracts subject to the FAR are contained in the terms and conditions of the contract. Non-profit entities may be required to submit performance reports at least annually but not more frequently than quarterly, using form or format authorized by OMB. (Financial reporting 2 CFR 200.327; Performance reporting 2 CFR 200.301 and 200.329). Condition and Context The Organization's federal award agreement requires SF-425 Federal Financial Report and a performance report to be filed annually. The Organization did not file these reports in 2025 as required. Cause The Organization did not follow the award agreement reporting requirements. Effect The Organization was not in compliance with the Federal Reporting compliance requirement. Identification as a Repeat Finding Not a repeat finding. Questioned Costs None. Recommendation We recommend that management review the reporting requirements in their federal award agreement to identify and file any required reports by applicable due dates. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.

Corrective Action Plan

Finding: Reporting: Congressional Grants - The Organization's federal award agreement requires SF-425 Federal Financial Report and a performance report to be filed annually. The Organization did not file these reports in 2025 as required. Views of Responsible Officials and Planned Corrective Actions: Management is in agreement with this finding Below is the corrective action plan Management acknowledges that required grant reporting, including the SF-425 Federal Financial Report and annual performance report, was not submitted in accordance with the federal award agreement. This was due to a breakdown in tracking reporting deadlines and responsibilities. To address this matter, management will implement the following corrective actions: • Centralized Grant Compliance Tracking: Establish a comprehensive reporting calendar that includes all federal grant reporting requirements, due dates, and assigned responsible parties. • Assignment of Accountability: Designate a specific individual responsible for monitoring compliance with all grant reporting requirements and ensuring timely submission of required reports. • Formalized Review and Submission Process: Implement a standardized process requiring preparation, supervisory review, and documented approval of all grant-related reports prior to submission. • Periodic Compliance Monitoring: Conduct periodic (e.g., quarterly) reviews of grant agreements to confirm all reporting requirements are identified, tracked, and fulfilled. • Training and Awareness: Provide training to relevant personnel on federal grant compliance requirements, including reporting obligations and applicable deadlines. Responsible Official: Warren McLean Completion Date: June 30, 2026

Categories

Reporting

Other Findings in this Audit

  • 1218811 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
59.059 CONGRESSIONAL GRANTS $1.00M