FAC Explorer

Finding 1238422 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-29
Audit: 413286
Organization: Grupo Nexos, Inc. (PR)
Auditor: RODRIGUEZ & SANTIAGO CPA'S PSC

AI Summary

  • Core Issue: One Federal Financial Report (SF-425) was submitted 5 days late, violating federal requirements.
  • Impacted Requirements: Reports must be submitted quarterly, 30 days after each quarter ends, as per the Teenage Pregnancy Prevention Program guidelines.
  • Recommended Follow-Up: Management should ensure timely preparation, review, and submission of all required financial reports.

Finding Text

Statement of Condition The results of the procedures performed in the financial and performance reporting requirements showed the following instances of noncompliance: (1) One of the two Federal Financial Report (SF-425) selected on our sample was submitted 5 days after due date to the federal government. Criteria In accordance with 2 CFR 200.328, unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved government wide data elements for collection of financial information at the time of publication the Federal Financial Report or such future, OMB-approved, government wide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances. The Federal awarding agency must use OMB- approved common information collections, as applicable, when providing financial and performance reporting information. According to the terms and conditions of the federal awards of the Teenage Pregnancy Prevention Program, the recipient must submit on a quarterly basis the Federal Financial Report. The FFR is due 30 days after the end of each quarter in the federal fiscal year. Specific due date for the FFR submissions under the Teenage Pregnancy Prevention Program are as follows: • Quarter ending September 30, the FFR is due on October 30 • Quarter ending December 31, the FFR is due on January 30 • Quarter ending March 30, the FFR is due on April 30 • Quarter ending June 30, the FFR is due on July 30 Cause of Condition Lack of follow-up and monitoring procedures by personnel and management to submit required financial reports in a timely basis. Effect of Condition As stated by the federal agency, failure to comply with the reporting requirements may delay processing any pending requests or applications. Recommendation Management must verify that all required reports are prepared, reviewed and submitted on a timely manner. Questioned Costs None. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the finding and the recommended procedures will be or have been implemented.

Corrective Action Plan

CORRECTIVE ACTION PLAN For the Year Ended December 31, 2025 Finding No.: 2025-001 Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.297 – Teenage Pregnancy Prevention Program (PROSa) Compliance Requirement: Reporting Responsible Entity: Grupo Nexos, Inc. – Finance Department and Program Management Reported Condition During the audit for the year ended December 31, 2025, it was identified that one (1) of the two (2) Federal Financial Reports (SF-425) selected as part of the audit sample was submitted five (5) days after the established due date. Management Response Grupo Nexos, Inc. acknowledges the finding and agrees with the need to maintain appropriate follow-up and monitoring procedures to ensure the timely preparation, review, and submission of all federal financial reports. The event identified during the 2025 audit occurred during the period in which the Organization was in the process of implementing the corrective measures related to Finding No. 2024-001. It is important to note that the scope of the conditions identified during 2025 was significantly reduced compared with the prior year. The other matters related to FFATA reporting and the Trans-NIH program identified in 2024 were corrected or did not result in similar findings during 2025. Corrective Actions 1. Centralized Compliance Calendar. An electronic calendar is maintained identifying the due dates for Federal Financial Reports (SF-425) and other reports required under each federal program. 2. Advance Alerts. Alerts have been established in advance of due dates to facilitate the timely preparation, review, and submission of reports. 3. Assignment of Responsibilities. Personnel have been designated as responsible for the preparation, follow-up, and submission of reports, along with backup personnel to ensure continuity in the event of an absence or staffing change. 4. Internal Review and Approval. Federal financial reports will be subject to internal review and approval by the Chief Financial Officer (CFO) prior to submission. 5.Documentation and Recordkeeping. Electronic evidence of the preparation, review, submission, and confirmation of receipt of each federal report will be maintained in a centralized compliance file. 6. Periodic Follow-Up. The Finance Department will periodically monitor the compliance calendar. Any situation that could result in a delay must be communicated to the CFO before the applicable due date. Status of Corrective Action The corrective measures related to this finding have been implemented and are part of Grupo Nexos, Inc.'s regular monitoring and compliance procedures. The Organization will continue to monitor the effectiveness of these controls to ensure that federal financial reports are prepared, reviewed, and submitted within the deadlines established by the federal awarding agencies. Implementation Date: 11/30/2025

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
93.297 TEENAGE PREGNANCY PREVENTION PROGRAM $1.71M
93.926 HEALTHY START INITIATIVE $278,348
93.310 TRANS-NIH RESEARCH SUPPORT $270,262