Finding 4498 (2021-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2021

Accepted

2023-12-15

Audit: 6996

Organization: Hips (DC)

Auditor: Kullman CPA LLC

AI Summary

Issue: The YR1 Federal Financial Report (FFR) was submitted late, on June 25, 2021, instead of the required February 28, 2020 deadline.
Impact: The late submission led to the HIPS Payment Management System account being placed on Restricted Status by the Grantor.
Recommendation: Ensure timely submission of financial reports to avoid restrictions and maintain compliance with grant terms.

Finding Text

The terms of the Notice of Grant Award state that the YR1 Federal Financial Report (FFR) is to be submitted on February 28, 2020. During our audit, we noted that HIPS Payment Management System account was placed on Restricted Status from the Grantor due to the Organization not filing the YR1 FFR by the due date of February 28, 2020. The actual submission date was June 25, 2021.

Corrective Action Plan

HIPS hired additional finance staff, including staff with experience in federal grantmaking, and reorganized the team member responsibilities to ensure all past due filings were completed by February 28, 2022.

Other Findings in this Audit

4499 2021-002

Significant Deficiency
4500 2021-003

Significant Deficiency
580940 2021-001

Significant Deficiency
580941 2021-002

Significant Deficiency
580942 2021-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.136	Injury Prevention and Control Research and State and Community Based Programs	$592,274
93.243	Substance Abuse and Mental Health Services_projects of Regional and National Significance	$526,243
93.788	Opioid Str	$100,825
93.917	Hiv Care Formula Grants	$35,693