Finding Text
2024-002 Untimely submission of data collection form and compliance with reporting requirements
Federal Programs Information
Funding Agency: U.S. Department of Health and Human Services
Pass-Through Agency: TN Department of Mental Health & Substance Abuse Services
1) 93.959 Federal Block Grants for Prevention of Substance Abuse
DGA 78087_2023-2024_023 and DGA 82413_2024-2026_204
2) 93.788 Opioid STR
H79TI0883307 and DGA 78005_2022-2023_076
Criteria
In accordance with 2 CFR Section 200.512(a), the audit must be complete, and the data collection form and the reporting package must be submitted within the earlier of 30 days after receipt of the auditor’s report(s), or nine months after the end of the audit period, adjusted for any extension permitted by the Office of Management and Budget. Mending Hearts did not meet the nine-month deadline.
Condition
The audit, reporting package and data collection form for the year ended June 30, 2024, was not filed by the deadline of March 31, 2025, to the Federal Audit Clearinghouse.
Cause
Mending Hearts has been in a period of expansion of their operations and has also experienced administrative staff changes, resulting in limited resources available to produce a complete, accurate and timely closing of the books.
Effect or potential effect
Delays in submission of audit reports, reporting packages and data collection forms raise concerns about Mending Hearts’ reliability in adhering to accounting and compliance requirements in a timely manner, potentially jeopardizing its ability to secure funding.
Recommendation
We recommend that Mending Hearts’ ensure that administrative staffing is sufficient to support the accounting and financial reporting functions of the organization.
Views of responsible officers
Management acknowledges this finding and will address remediation in the accompanying management’s corrective action plan in appendix A.