Finding Text
2021-008—Reporting
Federal program information:
Funding agency: U.S. Department of Health and Human Services
Title: Urban Indian Health Services; COVID-19
Emergency Grants to Address Mental and
Substance Use Disorders During COVID-19
ALN: 93.193; 93.665
Award number: 75H70720C00006; H722IHS0133; H79FG000227;
H79FG000667
Award period: Various
Criteria: Quarterly Federal Financial Reports (SF-425) are required to be submitted to the
granting agency according to the Notice of Awards for these programs.
Condition: Three of four quarterly SF-425 reports were submitted past the 30-day deadline after
the end of each quarter.
Questioned Costs: N/A
Context: Three of four quarterly SF-425 reports for the Urban Indian Health Services grant
awards and three of four quarterly SF-425 reports for the Emergency Grants to Address Mental
and Substance Use Disorders During COVID-19 grant awards.
Cause: Program personnel did not review and approve the reports for submission in a timely
manner.
Effect: FNCH is not in compliance with reporting requirements for these programs.
Auditor’s Recommendations: FNCH should develop internal controls to ensure all program
reports are properly completed and submitted by the required due dates.
Management’s Response: FNCH management agrees with the auditor’s recommendations. The
Finance Department faced significant staffing challenges due to the COVID-19 pandemic. These
challenges resulted in an 80% staff turnover, including the CFO. Additionally, the pandemic
made it difficult for the Finance Department to hire new staff in a timely manner. The COVID-
19 outbreak also impacted attendance, resulting in employees being absent from work for one to
two weeks. As a result, the Finance Department could not submit the quarterly SF-425 reports
due to the lack of staff.
The CFO will implement internal measures, including
creating a schedule of activities with due dates, progress reports, and staff meetings, to monitor
and ensure the financial close and reporting process has been completed within the required
timeframes and are accurate. Corrective action steps will be identified and implemented as
needed. The grant/contract staff will maintain a log of when financial and other grant reports are
due. The CFO will review the log and track report submissions to ensure timely completion and
submission. To ensure timely completion, the staff will initiate activities to complete required
reports and financial close at least 60 days before the deadline. The CFO will be responsible for
ensuring the reporting deadlines have been met.