Finding 1225241 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-07-31
Audit: 408281
Organization: Dreamkey Partners, Inc. (NC)

AI Summary

  • Core Issue: Semi-annual reports were submitted late due to an administrative oversight in tracking deadlines.
  • Impacted Requirements: Noncompliance with grant reporting requirements could jeopardize future funding and increase oversight.
  • Recommended Follow-up: Improve tracking of reporting deadlines by updating the reporting calendar and assigning monitoring responsibilities.

Finding Text

Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing Number 14.251 U.S. Department of Health and Human Services Other Noncompliance Criteria or Specific Requirement: Reporting Reporting (2 CFR § 200.328; Program-specific reporting requirements; grant agreement terms and conditions). Condition: Semi-annual reports were not submitted in a timely manner in accordance with grant reporting requirements. Cause:. The untimely submission was the result of an administrative oversight in the tracking of reporting deadlines. Effect or potential effect: Failure to submit required reports in a timely manner may result in noncompliance with grant requirements and could impact the Organization’s ability to receive future funding or result in increased oversight from the grantor agency. Questioned cost: None Context: All semi-annual reports for the year ended December 31, 2025 were tested. One of the two reports tested was submitted after the required due date, 6 days late. Identification as a repeat finding: Not a repeat finding Recommendation: It is recommended that management reinforce existing processes by enhancing the tracking of reporting deadlines, such as maintaining an updated reporting calendar and assigning responsibility for periodic monitoring, to help ensure timely submission of required reports. Views of responsible officials: DKP agrees with this finding.

Corrective Action Plan

Finding 2025-001 Corrective Action Plan: Management acknowledges the reporting lapse identified and notes that all required semi-annual reports have since been submitted as of the report date. The delay appears to have been an isolated oversight rather than a systemic breakdown in compliance. To enhance controls over grant reporting and prevent recurrence, the Organization has implemented the following corrective actions: Established a formal grant reporting calendar that includes all required reporting deadlines for each federal award. Assigned clear responsibility for report preparation and submission to specific personnel within the finance function. Implemented a secondary review process whereby management monitors upcoming deadlines and confirms timely submission of reports. Incorporated periodic compliance check-ins to ensure adherence to grant reporting requirements throughout the year. Management believes these measures strengthen oversight and will ensure timely preparation and submission of all required reports going forward. Anticipated Completion Date: December 31, 2026

Categories

Reporting Subrecipient Monitoring

Programs in Audit

ALN Program Name Expenditures
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $1.47M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1.44M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $875,000
21.000 NEIGHBORHOOD REINVESTMENT CORPORATION - EXPENDABLE GRANTS $481,667
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $122,400