Finding Text
2023-001 Timely Submission of Single Audit Report
Program Name/ Assistance Listing Number: 93. 959 Block Grants for Prevention and Treatment of Substance Abuse
Federal Agency: Department of Health and Human Services
Federal Award Identification: Unknown
Type of Finding: Material Weakness
Compliance Requirement: Reporting
Criteria: According to the OMB Compliance Supplement, Part 6 and 2 CFR 200.512 (a)(1), non-federal entities that expend $750,000 or more in federal awards during a fiscal year are required to submit a complete and accurate Data Collection Form (DCF) and a Single Audit report package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. The DCF is a critical element in ensuring transparency and accountability for the use of federal funds.
Condition: The Organization did not submit the required DCF for the fiscal year ended June 30, 2023, by the required deadline.
Cause of Condition: The delay in submission was caused by the changes in the executive director position: the retirement of the executive director, the appointment of a transitory executive director, and the subsequent
passing of the transitory executive director while looking for a new executive director.
Effect: Failure to submit the DCF on time resulted in noncompliance with federal regulations, which could lead to the potential withholding of future federal funding or other sanctions. It also undermines the Organization's compliance status and may affect the entity's standing with grantor agencies and other stakeholders.
Questioned Cost: Not quantifiable.
Recommendation: We recommend that the Organization implement stronger internal controls and procedures to ensure timely submission of the DCF. This could include designating a responsible party for tracking and submitting the DCF, creating a timeline and checklist for required submissions, and conducting periodic reviews to ensure compliance with deadlines. Additionally, the organization should provide training to relevant staff on the importance of meeting federal compliance requirements.
Description of the Nature and Extent of Issues Reported: We consider the following materiality for consideration of material noncompliance for the major program 93.959 at 5% of the total awards expended amounting to $51,253.
View of Responsible Official: Management agrees with the finding and will implement corrective action.