Finding Text
2022-003: Filing of Federal Reports SF-425 and OPR Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 Internal Controls Significant Deficiency Category of Finding ? Reporting Criteria ? IPTF is responsible to submit Federal Financial Reports (SF-425) and Ongoing Progress Reports (OPR) semi-annually within 30 days of period end. Condition ? The March 30, 2022 SF-425 and OPR were filed on June 1, 2022, outside the 30 day filing requirement. Cause ? IPTF?s Finance Director retired during the year and an outside accounting firm was contracted to take over the role of the accounting department. After taking over, the contract accountant was not aware of these federal reporting requirements, and that they were responsible for them. Additionally, the information needed for filing these reports was not ready on-time due to the contract accountant?s inability to provide reliable and timely financial reports. Effect ? Failure to submit reports within the required period may result in IPTF?s status to be delinquent and not be able to draw down funds on the award. Recommendation ? We recommend that management implement a formal process to ensure that federal reports are prepared and reviewed timely. Auditee?s comments and response ? IPTF has hired a new contract accountant, who will be responsible for ensuring that the accounting records are prepared accurately and to ensure that these required reports are submitted on time. Responsible party for corrective action: Sharon Day, Executive Director