Finding Text
Federal Programs: Social Services Block Grant ( ALN 93.667) and Formula Grants for Rural Areas (ALN 20.509) Finding 2024-1: Significant Deficiency.
Criteria: 2 CFR section 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition: An effective internal control system was not in place to ensure compliance with requirements related to the grant agreement and the allowable costs and allowable activities compliance requirements.
Cause: Allocations based on timesheets were not correctly calculated and therefore the splits were not correct.
Effect: The failure to establish an effective internal control system placed the Agency at risk of noncompliance with the grant agreement and the compliance requirements. A lack of effective reviews could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by the review process not ensuring there was accurate reporting of the activities of the programs.
Repeat Finding: This is not a repeat finding.
Questioned Costs: There were no questioned costs identified.
Recommendation: Add additional reviews or calculation checks to make sure the percentage of payroll is correctly split across the various grant awards based on time spent for each grant category.
Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has prepared a corrective action plan.