Finding Text
2022-003: Quarterly Financial Report Submissions Criteria and Condition: Federal award agreements require quarterly financial reports to be submitted by the fifteenth working day of the month following the quarter of reporting. Context: Audit procedures identified all quarters for fiscal year 2022 where reports were either not submitted within the fifteen-day requirement, Management could not substantiate when they were submitted, or were not submitted at all. Quarterly reporting period ended September 30, 2021 was submitted November 29, 2021. Quarterly reporting period ended December 31, 2021 did not have substantiation for when it was submitted. Quarterly reporting periods ended March 31, 2022 and June 30, 2022 were not submitted. Cause: Management has asserted that due to transitioning staff at the cognizant organization, requests for programmatic activities have occurred less and less. As a result, financial reports were submitted as requested by the cognizant organization. Effect: Adelante is not in compliance with the federal award financial reporting requirements on a quarterly basis. Recommendation: Procedures should be developed to ensure timely submittal and proof of submittal is maintained for quarterly financial reporting requirements.