This is caused by you not having permissions to the file location it's trying to run the report/process.  To change this following these steps:

We just need to change the SaveAsDir in the user's preferences and re-run report.
  1. In FIMS, click Tools > User Preferences
  2. Select All Other Preferences (default) and click ok
  3. Under Option: (the middle column), scroll down to the bottom and select SaveAsDir
  4. Click the Browse button
  5. Navigate to a folder you can use as a temp folder (for local installs the network (N:) drive OR on hostnet use the hostnet drive (S:)) (Note - you can create a temp folder for this) and then click ok
  6. Click apply and ok
  7. Re-run the Dormant Profiles report and try deleting again.