Finding 1230169 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-18

AI Summary

  • Core Issue: The System is not following its own procedures for timely submission of federal financial reports (SF-425).
  • Impacted Requirements: Compliance with the Uniform Guidance's internal controls over reporting is lacking, leading to delays.
  • Recommended Follow-Up: Implement a new process to ensure reports are submitted on time as per grant agreements.

Finding Text

2025-001 Reporting Assistance Listing #11.307 Economic Development Cluster Significant Deficiency Criteria: The Uniform Guidance requires appropriate internal controls over compliance for each direct and material compliance requirement. Proper review controls over the form SF-425, federal financial report, ensure that reports are completed timely. Reports should be submitted in the timeline as determined in the grant agreement. Condition: The System established a procedure over reporting that is not being adhered to in order to guarantee timely submissions. Cause: The System has limited staff available for these report types to allow for a timely submission. Effect or Potential Effect: The reports were not submitted timely. Questioned Costs: None. Context: The federal financial reports were tested in full. Of the two reports reviewed, one was found to not be submitted timely. Identification as a Repeat Finding: N/A Recommendation: The System should implement a process to ensure the timely submission of the reports. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.

Corrective Action Plan

Contact Person: Amy Boothe Management’s Response: Management acknowledges that the required financial report was submitted after the established due date. The delay was an isolated occurrence and did not affect the accuracy or completeness of the information reported. To address the finding, management will strengthen its grant monitoring process by incorporating a review of financial reporting requirements and associated due dates into quarterly grant meetings. During these meetings, upcoming reporting requirements will be reviewed, responsible parties will be identified, and submission deadlines will be monitored to ensure required reports are completed and submitted timely. This additional oversight is intended to prevent recurrence and support compliance with grant reporting requirements. Completion Date: 9/30/2026

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
93.493 CONGRESSIONAL DIRECTIVES $11.03M
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $2.35M
93.788 OPIOID STR $1.28M
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $931,529
93.965 COAL MINERS RESPIRATORY IMPAIRMENT TREATMENT CLINICS AND SERVICES $424,273
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $374,755
23.002 APPALACHIAN AREA DEVELOPMENT $270,175
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $239,451
93.104 COMPREHENSIVE COMMUNITY MENTAL HEALTH SERVICES FOR CHILDREN WITH SERIOUS EMOTIONAL DISTURBANCES (SED) $191,569
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $127,850
93.778 GRANTS TO STATES FOR MEDICAID $125,566
84.268 FEDERAL DIRECT STUDENT LOANS $84,427
93.165 GRANTS TO STATES FOR LOAN REPAYMENT $84,000
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $70,000
84.027 SPECIAL EDUCATION GRANTS TO STATES $68,999
84.063 FEDERAL PELL GRANT PROGRAM $23,182
93.945 ASSISTANCE PROGRAMS FOR CHRONIC DISEASE PREVENTION AND CONTROL $1,807
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $1,399
93.003 PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND $238