Finding Text
Finding 2025-001 - Untimely Submission of Financial Status and Expenditure Reports, All Major Programs (Repeat) Programs: Ryan White HIV/AIDS (ALN 93.917, $3,137,317); HOPWA (ALN 14.241, $1,851,237); HIV State Services (HHS001317000004, $2,889,482); LIHEAP/CEAP (ALN 93.568, $485,959; contracts 58240004035 and 58940004183); Regional Solid Waste, TCEQ ($214,792) Compliance Requirement: L - Reporting Classification: Significant Deficiency in internal control over compliance; Noncompliance Criteria: Grant contracts require financial status reports and expenditure reports to be submitted within 30 days after each reporting period end (monthly for Ryan White, HOPWA, State Services, and CEAP; quarterly for TCEQ). Condition: Late submissions occurred across all five major programs: Ryan White, 11 of 12 monthly B-13 reports late (average 37.8 days; worst April 2025 at 62 days); HOPWA, 11 of 12 late (average 37.8 days; worst August 2025 at 52 days); State Services, 10 of 12 monthly reports late (average 8.5 days; worst August 2025 at 22 days); CEAP contract 58240004035, 10 of 10 late (average 67 days; worst April 2025 at 103 days); CEAP IIJA contract 58940004183, 10 of 10 late (average 59 days; worst January 2025 at 101 days); TCEQ, 3 of 4 quarterly reports late (fourth quarter at 77 days). Cause: The Finance Director prepares all financial status reports for all programs. The FSR submission calendar implemented as the prior-year corrective action was not operating effectively, and resource constraints exist in a single-person finance preparation function. Effect: Grantor agencies received required financial reports late, impairing their ability to monitor award status, and creating risk of payment delays, award withholding, and high-risk designation consequences. Questioned Costs: None. Late reporting does not affect the allowability of the underlying expenditures. Repeat Finding: Yes. Repeat of Findings 2024-001 (Ryan White) and 2024-003 (State Services); the condition has expanded to all major programs. Recommendation: Implement a hard financial-report close calendar with preparation deadlines 10 days after each period end; cross-train a second preparer; require Executive Director review of the calendar monthly; and track submission dates against deadlines on a dashboard reviewed at each board finance committee meeting. Views of Responsible Officials and Planned Corrective Action: Management's response is presented in the accompanying Corrective Action Plan.