Finding 625 (2022-006)

Reporting and Period of Performance Support Significant Deficiency U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES ALN #: 93.224 Federal Award Identification #: H80CS00594 Condition: Support for annual SF-425 Federal Financial Report (FFR) submitted for the grant period ending 2/28/22 not maintained nor was there a completed budget period reconciliation performed to determine if the unobligated grant funds reported was accurate. CCHC also did not indicate their intention of carrying forward the funds to the next budget period in the remarks section of the report. Criteria: 45 CFR Part 75.302(b), 45 CFR Part 75.308 (d) Questioned Costs: $0 Context: The cumulative authorized amounts and grant funds drawn reported $575,000 in unobligated funds but the internal document for the main award showed that the budget period funds were spent. However, the prior year FFR reported all the funds as being spent but actually had $553,000 unspent. There are additional sub allocations that are to be factored in as well. Cause: Turnover in staffing, the grant tracker that was used in prior years was not maintained to provide a clear audit trail of underlying support for both reporting and period of performance. Effect: Noncompliance with federal requirements. Identification as repeat finding, if applicable: 2021-001 Recommendation: We recommend that CCHC track grant funds authorized and expended by budget period to ensure accurate FFR's and compliance with period of performance requirements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.