Finding 395985 (2023-002)

Finding 2023-002: Reporting Federal Programs: All Programs Criteria: Grantor requires that the Consolidated Entity submit a monthly Federal Financial Report (FFR), SF-425, in accordance with the schedule indicated in its grant agreement, within 30 days following the end of the prior month. Grantor also requires that the Consolidated Entity submit programmatic reports in accordance with the schedules indicated in its grant agreements. Internal controls should provide for these reports to report the measurement of the recipient's performance to show achievement of program goals and objectives, share lessons learned, improve program outcomes, and foster adoption of promising practices (2 CFR §200.301(a)). Condition: During our audit, we noted several instances where Federal financial reports and programmatic reports were not submitted within the deadlines outlined in the grant agreements. Additionally, we noted some reports were still not filed as of the date of fieldwork. Cause: The Consolidated Entity did not have the proper internal controls in place around its grants management to ensure timely and accurate Federal financial reports as well as programmatic reports as part of compliance with the Federal regulations. Effect or Potential Effect: The Federal financial reports and programmatic reports according to the Federal award(s) may not be monitored, thus having potential unallowable costs. Questioned Costs: None noted. Context: The Federal financial reports and programmatic reports were not submitted on a timely basis. Identification as a Repeat Finding: Not applicable Recommendation: We recommend the Consolidated Entity develop proper internal controls to ensure appropriate tracking of reporting deadlines for all Federal awards to ensure the preparation and timely submission of all reports required under its Federal awards' terms and conditions.