Finding Text
FINDING 2022-003 - LATE FINANCIAL REPORTING AND LIMITED CONTROLS OVER TIMELY REPORTING - CRIME VICTIMS ASSISTANCE, FEDERAL ASSISTANCE LISTING NUMBER 16.575 Criteria: The grant agreement specifies for Federal Assistance Listing Number 16.575 that monthly financial reports are to be submitted to the grantor no later than 15 days after each month-end. Condition: For the project year ended June 30, 2022, none of the monthly reports were submitted to the grantor timely. Questioned Costs: None. Effect: Delayed reporting affects the grantor?s ability to exercise effective grantee oversight and could result in grantor's withholding of payments and other adverse actions. Cause: Lack of proper management oversight and other controls over compliance with the reporting requirements. Recommendation: Management should communicate periodically with the federal agency and design and implement effective controls to ensure timely submission of future reports. Also, all past due reports should be submitted to the grantor as soon as possible. Management's Response: The Organization terminated our professional relationship with our financial services provider in FY23, Quatrro BSS. We established a financial services contract with Metropolitan Family Services (MFS) that began July 1, 2022. MFS has not had any late submission findings in the past ten years of audits. We have created a calendar with all necessary reporting deadlines for all funding agencies. The calendar is reviewed by the finance team, the executive team, and a government contracts and grants manager to ensure accurately recorded deadlines are reflected. The Director of Budgets reviews monthly deadlines and ensures timely submission of reports.