Finding Text
Criteria:
According to the Administrative Conditions of the grant agreement, the Commonwealth Utilities Corporation must prepare an SF 425 annually and submit it on or before December 31 of the same year.
Condition:
Of the five projects under CFDA No. 66.600, the SF 425 for all five projects was submitted late. M00T33715 was submitted on February 23, 2022. M-00T33717, M-00T33719,M-00T33721, and M-98T07701 were submitted on March 1, 2023.
Cause:
The Grant Administrator did not submit the report on time but requested an extension. No proof was provided that the extension was filed or approved by the grantor.
Effect:
There is a risk that the grantor may not approve future grants due to CUC’s noncompliance with the grant requirements.
Recommendation:
The Commonwealth Utilities Corporation should properly maintain their accounting, financial, and project records in a manner that will facilitate timely preparation and submission of required reports.
Views of the Officials:
CUC’s response is documented in the corrective action plan.