Finding Text
Condition: During our testing of compliance, we noted that the organization filed the annual SF-425 for the period ending September 30, 2023 late. The SF-425 was due November 30, 2023, and was not submitted until January 9, 2024. Criteria: Under the Uniform guidance and terms of the federal award agreement, the Organization is required to submit the annual SF-425 report at the end of the fiscal year within 60 days from the last day of the service for each program quarter. Cause: The due date of the reporting was missed by the Organization and therefore the report was not submitted timely. Effect: The annual SF-425 report was filed late and was not in compliance with the Uniform Guidance and the federal award requirements. Questioned Costs: None. Perspective Information: This occurrence appears to be an isolated instance. Repeat Finding: This was a repeat finding in the immediate prior audit. Recommendation: We recommend that the Organization review its monitoring process for the annual reporting of SF-425 reports, and ensure reports are filed timely within the requirements of the reporting deadlines. If an extension is necessary for any instances of reporting, a request for extension should be filed with the federal agency, along with a justified explanation for the additional time needed. Otherwise, all annual reports should be filed timely within 60 days after the end of each fiscal year. Views of Responsible Officials and Planned Corrective Action: Move United will put in place a three tier redundancy plan for ensuring that filings, both within the VA Salesforce system and within the Payment Management System, are filed prior to or on time each quarter. The Chief Financial Officer, Programs Director and Grants Administrator will work collaboratively to complete the necessary data compilation at least one week prior to the filing deadline. All three individuals will be trained on and have access to the two systems. In the event one individual is incapacitated at the time of filing, one of the other two will complete the filing on time.