Finding 371150 (2023-001)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-28
Audit: 292769
Organization: Youth Network Council (IL)
Auditor: Porte Brown LLC

AI Summary

  • Core Issue: The Organization failed to submit required SF-425 FFR reports for 2019-2021 on time, leading to non-compliance with grant terms.
  • Impacted Requirements: Timely submission of reports is essential for maintaining compliance with program requirements; the March 24, 2022 deadline was missed.
  • Recommended Follow-Up: Implement procedures to ensure that submitted reporting totals match those from the Grantor Agency to avoid future discrepancies.

Finding Text

Internal controls should bein place that provide reasonable assurance that required reports are completed and submitted timely in order to maintain compliance with program requirements. The required SF-425 FFR reports for 2019-2021 in PMS are listed as not complete and delinquent. The requested deadline of March 24, 2022 was not met and was still outatanding as of December 2023, therefore, the Organization was out of compliance with this requirement. The Organization fails to maintain required compliance with the terms and conditions of the grant award. The Organization noted a miscommunication with the granting agency regarding excess funds at the end of the reporting period. As a result the reports submitted by the Organization did not align with the Grantor Agency. During our inquiry and review of current communications with the granting agency, the Organization provided this information. Procedures should be implented requiring program management to ensure the reporting totals submitted agree to the amounts provided by the Grantor Agency.

Corrective Action Plan

1.     The action taken to correct this finding began in February of 2022 with the current Project Director, Maha McDiarmid (began working on IFR in 02/2022 and assigned as Project Director 07/2022). 2. ICOY is working with HHS & ACF staff as well as our contracted accountants to determine the correct alignment of the drawdowns in order to compete the delinquent reports. 3. We have requested meetings with HHS staff to note our inability to upload/enter data into the PMS system including Bridget Shea Westfall, Jan Rothstein, Telina Bennett-Reed, Carla Hill, Robison Raynette, and Wes Hogan. HHS staff are working to resolve the technical issues. 4. We have developed a spreadsheet aligning the drawdowns with monthly expenditures as documented in our General Ledger, which has been audited through June 30, 2021. 5. We have offered corrective solutions in lieu of the technical issues with the PMS portal like noting the information that could not be entered into the notes portion of the report. 6. We have identified that the problem is likely with the dating of the carryover requests and how we misunderstood what dates would constitute Year 1 Revenue and Year 1 expenses. 7. We are working with HHS to resolve both the technical issues and to figure out what dates needed to be used for each reporting period. 8. For purposes of reporting to ACF we will align our fiscal year with the fiscal cycle of our grant. 9. For purposes of reporting to ACF we will align our reporting year with the reporting cycle of our grant. 10. Programmatic and accountant staff will work closely to ensure internal controls are adhered to

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $348,560
21.027 Coronavirus State and Local Fiscal Recovery Funds $105,905
93.087 Enhance Safety of Children Affected by Substance Abuse $92,480