HANDS OF HEALING RESIDENTIAL TREATMENT CENTER, INC

Information on the Federal Program: Assistance Listing Number 93.676 - Unaccompanied Children Program, U.S. Department of Health and Human Services. Federal Award Identification Numbers (FAIN): 90ZU0453, 90ZU0454, and 90ZU0545. Compliance Requirement: Reporting. Type of Finding: Material noncompliance and significant deficiency in internal control over compliance. Criteria: Program requirements state that the Organization complete the Standard Form Performance Progress Report (SF-PRP) on an annual basis and at the conclusion of the grant period. The SF-PRP is due to be filed with the granting agency no later than 90 days after the completion of the annual period or grant period. Condition: We noted that three SF-PRPs were not filed timely as follows: For FAIN 90ZU0545, the annual performance progress report for the year ended March 31, 2025 and due on June 30, 2025, was not filed until July 8, 2025. For FAIN 90ZU0454, the final performance progress report due for the two-year grant period ended June 30, 2025 and due on September 30, 2025, was not filed until October 6, 2025. For FAIN 90ZU0453, the final performance progress report due for the two-year grant period ended June 30, 2025 and due on September 30, 2025, was not filed until October 6, 2025. Cause: The Organization lacked a process to ensure timely submission of annual and final SF-PRPs.Effect or Potential Effect: As stated in the grant agreements, failure to comply with performance reporting requirements is considered to be a breach of the grant agreement and cash payments may be withheld until the performance reports are submitted. Questioned Costs: None. Context: The Organization did not timely submit one of four annual SF-PRPs or either of the two final SF-PRPs that were due in 2025.Repeat Finding: Repeat finding of 2024-001 for significant deficiency in internal control over reporting.Recommendation: We recommend that the Organization develop a process to ensure submission of the annual and final SF-PRPs within the prescribed timeframe. Views of Responsible Officials: Management understands that SF-PRPs are required to be submitted within the timeframes specified in the grant agreements. To ensure compliance, management will delegate oversight responsibilities for completion of all SF-PPRs to the Chief Financial Officer (CFO). The CFO will be responsible for reading the Notice of Awards and calendaring out all SF-PPR due dates and ensure timely completion by program staff.

Information on the Federal Program: Assistance Listing Number 93.676 - Unaccompanied Children Program, U.S. Department of Health and Human Services. Compliance Requirement: Reporting. Type of Finding: Material noncompliance and significant deficiency in internal control over compliance. Criteria: Program requirements state that annual federal financial reports are required to be submitted no later than 90 days after the end of each budget period. Condition: Three annual federal financial reports for budget periods ending in 2024 were not submitted by the required due date. Cause: The Organization lacked a process to ensure timely submission of annual federal financial reports. Effect or Potential Effect: As stated in the agreements, failure to comply with reporting requirements is considered to be a breach of the agreement and cash payments may be withheld until the reports are submitted. Questioned Costs: None Context: Three out of the four annual federal financial reports that were due to be filed during 2024 were not submitted timely. Recommendation: We recommend that the Organization develop a process to ensure submission of the annual federal financial reports within the prescribed timeframe. Views of Responsible Officials: Management understands that annual federal financial reports (FFR) are required to be submitted no later than 90 days after the end of each budget period. In order to ensure compliance, management will delegate responsibilities for completing all FFR reports to the newly established office of Chief Financial Officer (CFO). The CFO will be responsible for reading the Notice of Awards and calendaring out all FFR due dates for timely completion. The CFO was hired in part to focus on activities such as these to ensure sustainable compliance in all areas related to federal grant awards.