Finding 10680 (2021-010)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-01-30
Audit: 14355
Organization: Town of Princeville (NC)

AI Summary

  • Core Issue: The Town failed to submit final reports on time for multiple FEMA projects, violating grant guidelines.
  • Impacted Requirements: Reports were submitted significantly late, risking administrative closure of grants and potential loss of reimbursements.
  • Recommended Follow-Up: The Town should improve monitoring and oversight to ensure timely submission of all required reports.

Finding Text

U.S. Department of Homeland Security Program Name: Federal Emergency Management (FEMA) Public Assistance (PA) Assistance Listing #: 97.036 MATERIAL NON-COMPLIANCE AND MATERIAL WEAKNESS Reporting - Final Reporting Criteria: The Town is required to submit a final report within 90 days of approved period of performance. Condition: The Town did not submit timely final reports for the following projects:  Senior Center where the period of performance ended September 21, 2021 and the final report was not submitted until June 25, 2023.  Park and playground equipment where the period of performance ended February 1, 2022 and the final report was not submitted until April 6, 2023.  Drainage system where the period of performance ended June 1, 2021 and the final report was not submitted until March 3, 2022. Effect: The Town was not in compliance with FEMA grant guidelines. Delays in submitting reports beyond 1 year can cause FEMA to administratively close out grants with the information available leaving the Town at risk for not receiving all unsubmitted reimbursements. Cause: Insufficient monitoring and oversight of the financial activities. Identification of a Repeat Finding: This is not a repeat finding from the immediate previous audit. Questioned Cost: None due to the nature of the finding. Recommendation: The Town ensures all reporting is submitted on a timely basis. Management Response: The Council agrees with this finding.

Corrective Action Plan

Name of Contact Person: Dr. Glenda Knight, Town Manager Corrective Action Plan: Management will ensure that remaining FEMA projects are closed out on a timely basis. Anticipated Completion Date: Management will implement the above procedure immediately.

Categories

Subrecipient Monitoring Cash Management Material Weakness Period of Performance Reporting Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 587122 2021-010
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
97.038 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.56M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $68,038
97.042 Emergency Management Performance Grants $16,408
21.027 Coronavirus State and Local Fiscal Recovery Funds $350