Finding Text
Finding #2023-004: Inadequate internal controls over Federal Awards
Type of Finding: Other Matter
Condition: The Company is not consistently following the written policies and procedures over federal awards. The Company did not properly monitor the federal award programs available to the operating properties which resulted in lost revenue.
Criteria: Written policies, procedures and standards of conduct required by 2 Code of Federal Regulations Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart D – Post Federal Award Requirements and Subpart E – Cost Principles are required.
Questioned Costs: Unknown
Effect: The Company is not in compliance with specific requirements of Uniform Guidance for non-profits. Federal programs were not utilized by the operating properties.
Cause: The Company does not have an adequate internal control system in place to properly monitor and review the federal awards.
Repeat Finding: No
Recommendation: We recommend the Company adhere to the written policies, procedures and standards of conduct. We recommend all federal programs are closely reviewed.
Management’s
Comment: Management is in agreement with finding.
Auditor’s Comment: Alamo is seeking training and support to improve internal controls and policies and procedures for oversight of federal awards. The Board of Directors is providing oversight and researching recommendations to ensure adequate internal controls are functioning. The Company is in the process of selecting a permanent Executive Director.