Management acknowledges the finding. During the initial stages of administration of the FEMA Public Assistance Program (ALN 97.036 – PA-4339), the Company relied substantially on existing operational, administrative, and accounting procedures while management worked to further tailor, document, and ...
Management acknowledges the finding. During the initial stages of administration of the FEMA Public Assistance Program (ALN 97.036 – PA-4339), the Company relied substantially on existing operational, administrative, and accounting procedures while management worked to further tailor, document, and formalize grant-specific compliance policies, procedures, and internal controls required under Uniform Guidance and FEMA regulations. Management notes that the Company maintained supporting documentation for expenditures and transactions related to the grant and that no questioned costs resulted from this matter. Management has substantially developed and implemented a significant number of corrective measures, policies, procedures, and internal controls designed to strengthen the Company’s internal control environment and support compliance with applicable federal award requirements. These actions included: Development and formal documentation of Financial Policies and Procedures; Implementation of procedures related to allowability of costs, disbursements, cash management, and property/equipment management; Enhancement of internal compliance monitoring procedures; Documentation and communication of grant administration responsibilities; Implementation of employee training and compliance guidance processes related to federal award administration. Management continues to enhance and formalize certain grant-specific controls, procedures, and compliance documentation as part of its ongoing efforts to further strengthen its federal award administration framework. Certain policies and procedures that had not yet been fully finalized remain in process and/or have been scheduled for completion and implementation. Management will continue periodically reviewing and updating these policies and procedures to ensure continued compliance with applicable federal regulations, FEMA guidance, and grant requirements.