Hoyleton Youth and Family Services

Untimely Submission of Quarterly Reports Criteria: Grant agreements and funder portal requirements mandate that all quarterly reports be submitted by the deadlines established by the funder. Condition: Hoyleton did not comply with required funder reporting deadlines for multiple quarterly reports during 2025. According to the funder portal, the Q2 report was due on February 28, 2025, and on March 19, 2025, the funder notified Hoyleton via the portal that the report was past due. Additionally, the Q4 report due on August 31, 2025 was not submitted timely. On July 31, 2025, staff noted to the funder that the template provided was incorrect, as it reflected Q3 formatting and dates; the tab name and date were manually updated to June 30, 2025. However, no submission appeared in the portal. In September 2025, the funder again notified Hoyleton that the report was delinquent. The Q4 report was ultimately submitted on October 23, 2025. Cause: Management reported that the delays resulted from staff turnover and limited organizational resources, which impacted timely preparation and review of required reports. Effect or potential effect: Untimely submission of required reports increases the risk of noncompliance with grant requirements, may negatively affect the organization’s relationship with the funder, and could jeopardize future funding. Recommendation: Management should establish and implement stronger reporting calendar controls, crosstraining, and backup staffing procedures to ensure all quarterly reports are prepared, reviewed, and submitted timely, regardless of personnel changes or resource constraints. View of responsible officials: See Corrective Action Plan.

Significant Deficiency in Internal Controls Over Grant Reporting. Criteria: Under the Uniform Guidance and sound internal control principles, non-federal entities must establish and maintain effective internal controls over compliancerequirements, including grant reporting. Controls should ensure: Preparation of accurate and complete reports, Timely submission of required reporting deliverables, Adequate review, oversight, and documentation, Staff continuity to ensure reporting obligations are consistently met. Condition: Internal controls over the preparation, review, and submission of required quarterly funder reports were not operating effectively during the 2025 reporting period. As noted in the compliance finding, Hoyleton did not submit the Q2 and Q4 2025 quarterly reports by the required deadlines, received multiple delinquency notices from the funder, and ultimately submitted the Q4 report nearly two months late. Instances were also noted where staff identified inaccuracies in the funder-provided reporting template but did not complete or document submission in the portal. These control breakdowns indicate insufficient internal oversight and monitoring of reporting requirements. Cause: Management reported that staff turnover and limited departmental resources contributed to inconsistent oversight of reporting deadlines and insufficient monitoring of report submission status. Backup personnel and crosstraining were not in place to mitigate the impact of staffing changes. Effect or potential effect: The absence of effective internal controls over the reporting process resulted in noncompliance with funder reporting deadlines and increases the risk of: Delayed or incomplete reporting, Miscommunication or misunderstandings with funders, Potential impact on current or future funding, Reduced transparency into program performance. Reputational risk with oversight agencies and funding partners. Because these internal control weaknesses allowed noncompliance to occur and were significant enough to merit attention by those charged with governance, they represent a significant deficiency. Recommendation: Hoyleton should strengthen internal controls over grant reporting by: Implementing a centralized reporting calendar with automated reminders, Establishing formal review procedures prior to submission, Requiring documentation verifying submission in the funder portal, Crosstraining staff and designating backup personnel to ensure continuity, Periodically monitoring reporting compliance at the supervisory level. These measures will help ensure accurate, complete, and timely reporting regardless of staffing changes. View of responsible officials: See Corrective Action Plan.