NEW HAMPSHIRE CATHOLIC CHARITIES, INC.

Timeliness of Reporting - Federal Agency: U.S. Department of Health and Human Services; Award Name: Consolidated Appropriations Act – NH Food Bank Mobile Food Pantries; Program Year: 2024; ALN #: 93.493. Criteria: Management was responsible for submitting timely reporting based on the terms of the grant agreement. Condition: During compliance testing, it was identified that the required Federal Financial Report (FFR) was not submitted timely to the Payment Management System (PMS). Context: The required FFR was not submitted timely based on the terms of the grant agreement. Cause: Management has processes and controls over the reporting process but experienced difficulty in obtaining access to PMS resulting in a delayed FFR submission. In an email dated March 26, 2024, a PMS Alert was issued from Congressionally Directed Community Projects. The PMS Alert stated that "PMS is reporting substantial delays in establishing access to accounts, due to increased fraudulent activities. They have indicated that a 30-day delay on access may be common." Management reports that the process took well over 30 days. Effect: As a result of the condition, the Organization's required reporting was not submitted timely based on the terms of the grant agreement. Recommendation: In the future, the Organization should ensure it implements appropriate processes and controls to ensure required reports are filed timely in accordance with the terms of the grant agreement. Views of Responsible Officials: Management acknowledges the finding. The existing processes and controls will be updated to ensure timely filings in the future.

Timeliness of Reporting - Federal Agency: U.S. Department of Health and Human Services; Award Name: Consolidated Appropriations Act – NH Food Bank Mobile Food Pantries; Program Year: 2024; ALN #: 93.493. Criteria: Management was responsible for submitting timely reporting based on the terms of the grant agreement. Condition: During compliance testing, it was identified that the required Federal Financial Report (FFR) was not submitted timely to the Payment Management System (PMS). Context: The required FFR was not submitted timely based on the terms of the grant agreement. Cause: Management has processes and controls over the reporting process but experienced difficulty in obtaining access to PMS resulting in a delayed FFR submission. In an email dated March 26, 2024, a PMS Alert was issued from Congressionally Directed Community Projects. The PMS Alert stated that "PMS is reporting substantial delays in establishing access to accounts, due to increased fraudulent activities. They have indicated that a 30-day delay on access may be common." Management reports that the process took well over 30 days. Effect: As a result of the condition, the Organization's required reporting was not submitted timely based on the terms of the grant agreement. Recommendation: In the future, the Organization should ensure it implements appropriate processes and controls to ensure required reports are filed timely in accordance with the terms of the grant agreement. Contact: David Hildenbrand, Chief Financial Officer. Corrective Actions Taken or Planned: Management acknowledges the finding and will ensure controls are implemented to prevent this error from reoccurring. Anticipated Completion Date: By December 31, 2024.

Federal Agency: U.S. Department of Health and Human Services; Award Name: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution; Program Year: Period 3 and Period 4 Reporting; CFDA #: 93.498; Criteria: Management was responsible for reporting COVID-related expenditures based on the terms of the grant agreement. Condition: During compliance testing, it was identified that certain expenditures included in the final report were not accurate based on the amounts recorded within the Organization's general ledger. Context: The COVID-related expenditures reported for the period were not accurate. Cause: Certain COVID-related expenditures had inaccuracies in the expenditures reported for Period 3 and Period 4. Effect: As a result of the condition, the Organization's required reporting for this grant was misstated, however the Organization was able to recalculate the appropriate COVID-related expenditures and, in conclusion, report that there were enough expenditures to charge to this federal award to support the propriety of all funds received. Further, the expenditures reported on the Period filings were limited to the amount of funding received. Recommendation: In the future, the Organization should ensure it implements appropriate processes and controls to ensure a review is performed prior to submission to the awarding agency. Views of Responsible Officials: Management acknowledges the finding and will review the current processes and control in place.

Accuracy of Reporting: Criteria: Management was responsible for reporting COVID-related expenditures based on the terms of the grant agreement. Condition: During compliance testing, it was identified that certain expenditures included in the final report were not accurate based on the amounts recorded within the Organization's general ledger. Context: The COVID-related expenditures reported for the period were not accurate. Cause: Certain COVID-related expenditures had inaccuracies in the expenditures reported for Period 3 and Period 4. Effect: As a result of the condition, the Organization's required reporting for this grant was misstated, however the Organization was able to recalculate the appropriate COVID-related expenditures and, in conclusion, report that there were enough expenditures to charge to this federal award to support the propriety of all funds received. Further, the expenditures reported on the Period filings were limited to the amount of funding received. Recommendation: In the future, the Organization should ensure it implements appropriate processes and controls to ensure a review is performed prior to submission to the awarding agency. Contact: David Hildenbrand, Chief Financial Officer. Corrective Actions Taken or Planned: Management acknowledges the finding and will ensure controls are implemented to prevent this error from reoccurring. Anticipated Completion Date: By December 31, 2023.