Finding Text
Identification as a Repeat Finding: Elements of this finding are repeats of Finding 2022-002.
Finding:
The Organization was late in filing reports required by program contracts.
Criteria:
Federal contracts identify periodic reporting requirements for reports due to funders.
Sample Size and Population:
1 of 5 reports required for major programs.
Condition and Context:
The Small Business Administration (SBA) loan agreement requires submission of financial statements within 90 days of year end. The Organization did not submit financials directly to the SBA. Additionally, the HUD REAC submission for Section 8 Housing Choice Vouchers was not filed within 90 days of year end as required by HUD in 2023 and 2024.
Effect:
As a result of late submissions, federal funders did not have timely access to relevant information regarding the Organization’s transactions involving federal funds. Cause:
The Organization presumed its annual filing on the Federal Audit Clearinghouse would meet the SBA’s requirement. However, the filing was submitted in September 2023 and a waiver of the 90 day deadline was not requested from the SBA. The responsibility for preparing the HUD REAC submission reports transitioned between staff during the year.
Recommendations:
We recommend the Organization implement systems of tracking grant reporting deadlines in order to ensure that reporting deadlines are met timely.
Questioned Costs:
None
Management Response:
Management response is reported in the “Corrective Action Plan” at the end of this report.
Contact Person:
Marc Cote, Executive Director 206-542-6644