Finding 1224123 (2025-001)

Finding No. 2025-001 – Late Report Filling Federal Program Health Center Program Cluster ALN 93.224 Name of Federal Agency U.S. Health and Human Services Compliance Requirement Reporting Type of Finding: Significant deficiency in internal control over compliance Criteria Title 2 CFR §200.328(a) requires the Federal Financial Report (SF-425). Payment Management System (PMS) HRSA require the recipient or subrecipient must submit financial reports as required by the Federal award. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendars days. Condition During our review of the SF-425 submitted reports, we noted that one of the reports was submitted after the 90-day requirement. Context From a sample of two (2) financial reports submitted during the fiscal year ended September 30, 2025, one was filed late. Cause The condition was caused by deficiencies in internal control over compliance. Management did not establish adequate monitoring procedures to ensure required reports were prepared and submitted by the applicable deadlines and ensure timely preparation, review, and submission of required reports. Effect Lack of report submission or a delay on report submission may result in regulatory penalties and or additional administrative costs. Questioned Costs There were no questioned costs associated with this finding. Identification as a Repeated Finding This is not a repeat finding from the immediate previous audit. Recommendation We recommend that management strengthen internal controls over the filing process by establishing formal procedures to monitor reporting deadlines, assign responsibility for preparation and review activities, and ensure required filings are submitted in a timely manner. Management should also implement a tracking mechanism, such as a compliance calendar or automated reminders, to improve oversight and prevent future delays. Views of responsible Officials (Unaudited) Refer to the corrective action plan on pages 47-50.