Finding 1073716 (2023-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-18

AI Summary

  • Core Issue: The Bureau failed to provide documentation for their annual report submission to the Kentucky Department of Tourism.
  • Impacted Requirements: This violates the record retention rules outlined in 2 CFR 200.334, affecting the ability to test compliance.
  • Recommended Follow-Up: Ensure all records related to Federal awards are maintained, including copies of submitted reports, to meet compliance standards.

Finding Text

Finding 2023-003: Reporting Federal Program: Economic Adjustment Assistance [AL #11.307]. Criteria: Per 2 CFR 200.334, financial records, supports documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. Condition: The Bureau was unable to provide documentation that their annual report was submitted to the Kentucky Department of Tourism. As such, the report was unable to be tested. Cause: Controls were not in place to ensure records were maintained in accordance with the Uniform Guidance. Effect: The reporting requirements were unable to be tested. Questioned Costs: None Context: This is not a systemic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Bureau maintain all records related to Federal awards, including making copies of reports submitted, to ensure compliance with the award. Management Response: The management team received limited guidance on the testing, reporting, and retention requirements of federal funds. In the future, copies of all reports and documentation of timely submission will be maintained by the management team.

Categories

Subrecipient Monitoring Matching / Level of Effort / Earmarking Reporting

Other Findings in this Audit

  • 497274 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance $756,173
21.027 Coronavirus State and Local Fiscal Recovery Funds $274,500