Audit 406171

B. Compliance CF 2025-001 Reporting Aging Cluster Program 93.044, 93.045, 93.053 Criteria: The grant agreement requires the timely submission of financial and programmatic reports to ensure compliance with grant terms and accountability for grant expenditures. Accurate and timely reporting is essential for maintaining transparency, monitoring grant performance, and ensuring continued funding. Condition: We noted that the County Department responsible for administering the Aging Cluster grant did not submit the monthly report for October 2024 within the deadline established by the grant agreement. Context: The issue was determined to be an isolated occurrence rather than a systemic or programmatic concern. Questioned Cost: Undeterminable Cause: The delay in report submission was primarily due to insufficient internal controls over the reporting process and inadequate monitoring of reporting deadlines. Effect: Failure to submit reports timely and accurately may result in noncompliance with grant requirements, potential funding delays, or jeopardized future grant funding. Late reporting may also hinder the ability of grant oversight entities to assess program effectiveness and ensure proper use of grant funds. Recommendation: We recommend that the County Department enhance its internal controls to ensure the timely and accurate submission of grant reports by establishing a formalized tracking system for monitoring deadlines and submission statuses, clearly assigning responsibility for report preparation and oversight, and implementing a review process to verify report completeness and accuracy prior to submission, while also providing periodic training on grant reporting requirements. Views of responsible officials and planned corrective action: The Community Services Department (CSD) acknowledges the untimely submission of the October 2024 report. As indicated in the finding letter, this matter was an isolated event and not a systemic or programmatic concern. The delay resulted from temporary staffing shortages and leadership transitions during a high-demand fiscal period, rather than from deficiencies in internal controls. The Department maintains appropriate internal controls, clearly assigned responsibilities, and supervisory review processes. With stabilized leadership and strengthened monitoring procedures in place, the County is confident that timely grant reporting will continue moving forward. Views of responsible officials and planned corrective action: (cont’d) Although the County’s internal control structure remains sound and responsibilities are clearly assigned, the following measures have been reinforced to ensure continuity during future staffing transitions or high-volume periods: 1. Affirmation of Existing Internal Controls o Confirmed that established internal controls over grant reporting remain appropriate and effective. o Reaffirmed clearly designated staff responsible for preparation, review, and submission of grant reports. 2. Enhanced Deadline Monitoring o Strengthened use of a centralized tracking log 3. Backup Coverage and Cross-Training o Identified backup personnel to ensure continuity during staff vacancies or absences. 4. Strengthened Management Oversight o With the new Fiscal Division Director in place, oversight and monitoring of grant reporting timelines have been reinforced. Management now conducts proactive check-ins during peak workload periods, including Fiscal Close-Out. Responsible Parties: Fiscal Division Director, Fiscal Unit Management, Assigned Accountant 3 and 2. Implementation and Completion Date: Corrective actions began in November 2024 following stabilization of leadership positions. Enhanced monitoring and oversight procedures are consistently reviewed, evaluated, and refined throughout the year to increase operational efficiency, strengthen internal controls, and ensure continued compliance with all grant reporting requirements.