Finding Text
Reporting (Significant Deficiency) Criteria: The subaward agreements require GNHP to submit quarterly financial reports and quarterly reports that include a comparison of actual expenditures to budgeted expenditures and a written narrative performance report describing accomplishments resulting from the expenditure of Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”). GNHP is responsible for complying with the reporting requirements established by the applicable subaward agreements and federal requirements. Condition: During our testing of GNHP's compliance with reporting requirements for the SLFRF program, we noted that GNHP did not consistently prepare, review, and/or submit the required financial and performance reports in accordance with the requirements of the subaward agreements. Effect: Failure to prepare and submit required reports accurately and timely may result in noncompliance with the terms and conditions of the SLFRF subawards and may prevent the pass-through entity from obtaining the information necessary to monitor the use and performance of federal funds. Continued noncompliance could also result in additional monitoring, withholding of funds, or other remedies available to the pass-through entity. Cause: GNHP did not have formalized policies and procedures establishing the nature, timing, extent, and documentation requirements for reporting of federal awards. Recommendation: We recommend that GNHP establish formal procedures for monitoring SLFRF reporting requirements and deadlines. Such procedures should require reconciliation of reported financial information to the general ledger and supporting records, documented management review of financial and performance information, and retention of evidence demonstrating the date and manner in which each required report was submitted to the pass-through entities. Views of the Responsible Official: See attached Corrective Action Plan