Finding 521156 (2024-002)

2024-002: Significant Deficiency in Internal Control - Reporting Repeat finding of 2023-002 Federal Program: Health Center Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2024 Compliance Requirement: Reporting Questioned Costs: There are no questioned costs associated with this finding. Criteria: The Organization is required to submit quarterly Federal Cash Transaction Reports within 30 days of the end of each calendar quarter. The Organization also has requirements to submit various reports for performance and special reporting throughout the year. Performance and special reporting deadlines vary by grant, as some require a one time submission, while others may have semi-annual or quarterly reporting requirements. Condition and Context: The Organization was required to submit thirty-five reports during its fiscal year ended March 31, 2024, which comprised six financial reports and twenty-nine performance reports. Two performance reports and three financial reports were not filed timely. Reports that were filed late ranged from being 1 day late up to seventeen days late. The Organization was able to demonstrate its attempt to file 4 of the late reports before their respective due dates however due to login issues on the federal submission site, the reports were not timely filed. The fifth late submission was late by one day. Effect: The Organization did not comply with the reporting requirements for the submission of its performance and financial reports for the fiscal year ending March 31, 2024. Cause: The Organization did not file these reports timely due to an oversight by management. Recommendation: The Organization should implement procedures to identify and ensure compliance with all reporting requirements for each project. Views of Responsible Officials and Planned Correction: The late submission of grant reports was mainly due to login issues when the HRSA changed the process for logging in by adding on a second layer for authentication. A diary system has been developed to alert the CFO and the Controller when grant reports are due. Also, the Controller and Assistant Controller have been given access to both the Payment Management System and the Electronic Handbook (EHB) and have been trained in federal grant reporting so that in the absence of one the others can prepare the reports and submit on time.