Finding Text
Criteria
The grant requires that SF-425, Federal Financial Report - Quarterly Federal Financial Report (“FFR”) are required to be filed no later than 30 days after the end of the quarter.
Condition
During our audit, we noted that the Organization did not file FFRs timely during the year ended June 30, 2022.
Cause
Employees in the Organization’s finance and accounting department during this period did not have established procedures to timely file these reports.
Effect
The delay in filing the report resulted in noncompliance with program requirements.
Context
We sampled the FFR for the quarter ended June 30, 2022, noting that it was filed July 2023. Also, in our discussion with management, it is our understanding that the FFRs for three prior quarters were also filed late.
Questioned Costs
None.
Recommendation
The Organization has since hired a new Finance Director, who has implemented procedures to ensure required reports are filed timely. We recommend the Organization ensure these procedures continue be followed so that all required reports are filed timely.
Views of Responsible Officials
Management concurs with the finding and will ensure that the reports will be filed timely.