Finding Text
Untimely Submission of Federal Financial Reports ("SF-425") – Reporting – Assistance Listing Numbers: 93.224 and 93.527 Consolidated Health Center Cluster Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: A Federal Financial Report ("SF-425") was submitted after the required reporting deadline, indicating that controls over the timely submission of required federal reports were not operating effectively. Criteria: Title 2 CFR §200.328 requires non-federal entities to submit required SF-425 reports no later than 90 calendar days after the end of the reporting period, unless otherwise specified in the terms and conditions of the federal award. Effect: Failure to submit these reports timely increases the risk of noncompliance with federal reporting requirements and may result in delayed monitoring, enforcement actions, or other adverse consequences by the awarding agency. Context: During audit testing, 1 of 3 reports selected for testing was not submitted by the applicable reporting deadline. The exception consisted of 1 SF-425 report related to the major federal program. The sample selected was not a statistically valid sample; therefore, the results of the testing should not be projected to the entire population. Questioned Costs: None. Cause: Controls and procedures designed to ensure timely preparation, review, and submission of required federal financial reports were not consistently followed, resulting in delayed submission of this report. Recommendation: We recommend that the Organization strengthen internal controls over federal financial reporting by implementing procedures to monitor reporting deadlines, including maintaining a formal tracking mechanism or compliance calendar for SF‐425 due dates, assigning clear responsibility for report preparation and submission, and performing supervisory review to ensure SF-425 reports are submitted in accordance with federal requirements. View of Responsible Officials: Management agrees with the finding.