Audit 384740

Significant Deficiency Finding 2025 – 001: Grant Administration Condition: During our current audit fieldwork, we noted that the Organization does not have adequate procedures in place for tracking and monitoring grant activities. Each grant has unique reporting and compliance requirements, which is handled inconsistently among the Organization’s departments. Criteria: It is the Organization’s responsibility to track, monitor compliance with grant requirements, and properly account for all grant monies received throughout the year. Cause: A uniform set of policies and procedures for handling grant activities is lacking, creating inconsistencies among departments on recording grant funding. Effect: Grant compliance with federal grants received in the year cannot be assured when tracking and monitoring grant activity is not clearly delineated. Recommendation: We recommend that the Organization develop specific policies and procedures for tracking and monitoring grant activities and clearly delineate responsibility for monitoring the Organization’s compliance with applicable requirements. These policies and procedures should be established to ensure the Organization’s compliance, as an entity as a whole, with Single Audit and Granting requirements. We also recommend that the Organization establish a central tracking mechanism to monitor grant activity. Corrective Action Plan: The Executive Director, along with staff, will create better policies and procedures around the tracking and monitoring of grant funding throughout the year.