Finding Text
Condition: Based on our audit procedures, we noted that LMI’s internal control process for reviewing and submitting the semi-annual financial reports due under the grant agreement was not working effectively. Two of the semi-annual financial reports submitted during the year under audit were not properly reviewed by the Executive Director and were submitted later than the due date.
Cause: The ineffective report review process was a result of LMI not having set controls as it relates to the federal award.
Repeat Finding: No
Recommendation: We recommend that LMI implements certain internal control processes to ensure that reporting related to federal awards are reviewed and submitted in compliance with grant agreements.
Views of Responsible Officials: See Corrective Action Plan.