Audit 407773

Federal Programs – AL 93.568 – Low Income Home Energy Assistance Program Criteria – A good system of internal controls allows for the compliance with Uniform Guidance to monitor funds that are passed through to subrecipients and the continued stewardship of those federal dollars. Condition – For the year ended December 31, 2025, we discussed the policies and procedures in effect for CAPND employees to adequately monitor the subrecipients under the Low Income Home Energy Assistance Program (LIHEAP). We reviewed any subawards between CAPND and subrecipients under the Low Income Home Energy Assistance Program (LIHEAP). We noted one subrecipient was missing a subaward during the year. Although the policies and procedures in effect during the year ended December 31, 2025 were appropriately designed, they were not completed throughout the year. Cause – There was a general misunderstanding between staff and management on the process of completing subrecipient monitoring controls throughout the year. Effect – Noncompliance will not be prevented or detected and corrected in a timely manner. Repeat Finding – This is not a repeat finding. Recommendation - The subrecipient monitoring policies and procedures should be updated to include specific milestones and broken down into specific tasks that are to be achieved throughout the year. These could then be monitored through meetings between the board treasurer and the LIHEAP program coordinator. Redundancies and cross-training could be included to reduce the risk that lapses in monitoring occur due to staff turnover or extended absences. In addition, training for all staff upon employment and periodically throughout the year over LIHEAP policies and procedures would allow for better clarity and understanding. Views of Responsible Officials - Management recognizes the deficiency and plans to implement the auditor’s recommendation.

Federal Programs – AL 93.568 – Low Income Home Energy Assistance Program Criteria – Uniform Guidance requires, for any funds passed through to a subrecipient, that the pass-through entity (CAPND) must perform certain activities to ensure that the subrecipient uses the funds within provisions of the grant award and Uniform Guidance, 2 CFR sections 200.332 (b). This includes issuing subawards granted to subrecipients. Condition – For the year ended December 31, 2025, we reviewed any subawards between CAPND and subrecipients under the Low Income Home Energy Assistance Program (LIHEAP). We noted one subrecipient was missing a subaward during the year. Cause – There was one missing subaward between CAPND and the subgrantee. Effect – Increased risk of potential noncompliance with subrecipient monitoring requirements under Uniform Guidance. Questioned costs – None. Repeat Finding – This is not a repeat finding. Recommendation – The entity should include all required information as determined in CFR Section 200.332(b) in all subawards. Views of Responsible Officials - Management recognizes the deficiency and plans to implement the auditor’s recommendation.