Finding Text
2023-003: Filing of Federal Reports SF-425
Federal Departments: Department of Health and Human Services
Assistance Listing #: 93.612
Compliance and Internal Controls Significant Deficiency
Category of Finding – Reporting
Criteria – IPTF is required to submit Federal Financial Reports (SF-425) semi-annually within 30 days of period end.
Condition – The September 30, 2022 and March 30, 2023 SF-425 reports were filed on March 2, 2023 and May 1, 2023, outside the 30 day filing requirement.
Cause – IPTF had turnover in the contract accountant. After taking over, the new contract accountant was not aware of their responsibility for these federal reporting requirements.
Effect – Failure to submit reports within the required period may result in IPTF’s status to be delinquent and not be able to draw down funds on the award.
Recommendation – We recommend that management implement a formal process that clearly defines who is responsible for preparing these reports and to ensure that federal reports are prepared and reviewed timely.
Auditee’s comments and response – IPTF hired a new contract accountant, who is responsible for ensuring that the accounting records are prepared accurately and to ensure that these required reports are submitted on time.
Responsible party for corrective action – Sharon Day, Executive Director
Repeat finding – 2022-003