Internal Controls over Compliance with Activities Allowed or Unallowed Requirement (Significan Defiency. Identification of the Federal Program(s): 1. Assistance Listig program Title and Number 21.027 Appalachian Community Grant Program, 2. Federal award identification number: 21.027 Ohio Department of Development (GOA-F23-ACGDG-195968), 3. Name of the federal agencies: 21.027 Department of the Treasury, 4. Name of the applicable pass-throught entities: 21.027: Ohio Department of Development. Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations and the terms and conditions of the fereral awards. Condition: During the Audit, it was noted 8 out of 8 non-payroll charges for the major program lacked invoice approvals, as approvals were not required for the actural transactions. Cause: Failure to adhere to their established porcess and no proper turnover of previous employees let to the absence of approvals for the actual transactions. Effect or potential effect: Without adequate internal controls to ensure that all charges to teh federal program are properly reviewed for allowablity, SAOP could be noncompliant with the allowability requirement and might request funds for unalloed costs. Questioned Costs: None. Context: There are no invoice approvals for non-payroll charges in the major program. Identificaion as a repeat findings, if applicable: Yes, see findings 2023-001. Recomendations: We recommend that SAOP secure approvals for charges related to the federal program. View of responsible officals: Management agrees with the findings and recommendation.
Internal controls over Compliance with Subrecipient Monitoring (Significate Deficiency) Indentification of the federal program(s): Assistance Listing Program title and Number: 21.027 Appalachian Community Grant Program. Federal award identification number: 21.027: Ohio Department of Development (GOA-F23-ACGDG-195968. Name of the federal agency: 21.027 Department of the Treasury. Name of the applicable pass-through entities: 21.027: Ohio Department of Development. Creteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.332(a), pass-through entities must ensure that every subaward is clearly identified to teh subreceipient and must include required information in a written agreement. Additionally, section 200.332(d), requires pass-through entities to monitor the activities of subrecipients to ensure that federal awards are used to aughorized purposes and in compliance with laws, regulations, and the terms of teh award. Condition: During the audit, we noted that SAOP disbursed federal funds to one subrecipient without executed subaward agreements. Furthermore, there was no evidence of ongoing monitoring activities such as site visits, performance reviews, or financial oversight. Cause: SAOP did not have a formal procedures in place to ensure that subrecipients agreement were executed prior to disburesement and lacked a structured subrecipient montoring process. Effect or potential effect: The absence of signed agreements and monitoring increases the risk of noncopliance with federal requrements and potential misuse of federal funds. SAOP mah be held responsible for any unallowable costs incureed by subrecipients. Questioned costs: None. Context: One Subrecipient does not have a signed agreement and lacks proper monitoring. Identificaion as a repeat findings, if applicable: Not Applicable. Recommendation: We recommend that SAOP implement a formal subrecipient management policy that includes executing written subaward agreement prior to disbursing funds and establishing a documented monitoring plan that includes periodic reviews, site visits, and performance evalations. Views of responible officials: Management agrees with teh finding and recommendations.
Internal Controls over Compliance with Activities Allowed or Unallowed Requirement (Significan Defiency. Identification of the Federal Program(s): 1. Assistance Listig program Title and Number 21.027 Appalachian Community Grant Program, 2. Federal award identification number: 21.027 Ohio Department of Development (GOA-F23-ACGDG-195968), 3. Name of the federal agencies: 21.027 Department of the Treasury, 4. Name of the applicable pass-throught entities: 21.027: Ohio Department of Development. Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations and the terms and conditions of the fereral awards. Condition: During the Audit, it was noted 8 out of 8 non-payroll charges for the major program lacked invoice approvals, as approvals were not required for the actural transactions. Cause: Failure to adhere to their established porcess and no proper turnover of previous employees let to the absence of approvals for the actual transactions. Effect or potential effect: Without adequate internal controls to ensure that all charges to teh federal program are properly reviewed for allowablity, SAOP could be noncompliant with the allowability requirement and might request funds for unalloed costs. Questioned Costs: None. Context: There are no invoice approvals for non-payroll charges in the major program. Identificaion as a repeat findings, if applicable: Yes, see findings 2023-001. Recomendations: We recommend that SAOP secure approvals for charges related to the federal program. View of responsible officals: Management agrees with the findings and recommendation.
Internal controls over Compliance with Subrecipient Monitoring (Significate Deficiency) Indentification of the federal program(s): Assistance Listing Program title and Number: 21.027 Appalachian Community Grant Program. Federal award identification number: 21.027: Ohio Department of Development (GOA-F23-ACGDG-195968. Name of the federal agency: 21.027 Department of the Treasury. Name of the applicable pass-through entities: 21.027: Ohio Department of Development. Creteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.332(a), pass-through entities must ensure that every subaward is clearly identified to teh subreceipient and must include required information in a written agreement. Additionally, section 200.332(d), requires pass-through entities to monitor the activities of subrecipients to ensure that federal awards are used to aughorized purposes and in compliance with laws, regulations, and the terms of teh award. Condition: During the audit, we noted that SAOP disbursed federal funds to one subrecipient without executed subaward agreements. Furthermore, there was no evidence of ongoing monitoring activities such as site visits, performance reviews, or financial oversight. Cause: SAOP did not have a formal procedures in place to ensure that subrecipients agreement were executed prior to disburesement and lacked a structured subrecipient montoring process. Effect or potential effect: The absence of signed agreements and monitoring increases the risk of noncopliance with federal requrements and potential misuse of federal funds. SAOP mah be held responsible for any unallowable costs incureed by subrecipients. Questioned costs: None. Context: One Subrecipient does not have a signed agreement and lacks proper monitoring. Identificaion as a repeat findings, if applicable: Not Applicable. Recommendation: We recommend that SAOP implement a formal subrecipient management policy that includes executing written subaward agreement prior to disbursing funds and establishing a documented monitoring plan that includes periodic reviews, site visits, and performance evalations. Views of responible officials: Management agrees with teh finding and recommendations.