Finding Text
2024-001 Internal Control over Compliance and Compliance with Reporting
Criteria: CFR Section §200.328(c) states in part: “The recipient or subrecipient must submit financial
reports as required by the Federal award. Reports submitted annually by the recipient or
subrecipient must be due no later than 90 calendar days after the reporting period. Reports
submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting
period.”
Condition: The internal controls implemented to ensure the timely submission of the quarterly
financial report and quarterly performance report within 30 days after the end of the reporting
period did not function as intended. During our testing of reporting compliance, BDO noted that the
following reports were not submitted on time due to staff unavailability for preparation and
submission:
• One financial report (quarter 1) for ALN 19.801
• One financial report (quarter 2) and one programmatic report (quarter 1) for ALN 98.001
Cause: The Organization's internal controls, designed to ensure compliance with reporting
regulations, failed to function as intended. As a result, they did not effectively address the
requirement to submit financial reports in a timely manner and meet the established deadlines.
Effect: The failure of the Organization's internal controls to operate as designed has led to delays
in the submission of the required financial reports, potentially resulting in non-compliance with the
requirements of CFR Section §200.328(c).
Questioned Costs: None.
Context: The nature of these findings is detailed in the condition section above.
Repeat Finding: This finding is not a repeat finding from prior year.
Recommendation: We recommend that management evaluate the current controls to confirm they
are strong and capable of effectively meeting the requirements for timely financial report
submission. Additionally, management should ensure there are sufficient staff members available
to prepare and submit the reports.
Views of Responsible Officials: Management agrees with the finding and recommendations set forth
within and has developed a corrective action plan to address the instances of noncompliance
identified and lapses in prescribed internal controls.