Finding Text
Condition – Wipfli,LLP was unable to verify the period of performance for the program due to Porchlight, Inc.'s inability to provide detailed transaction reports for the program for the period January 1, 2023 through December 31, 2023. In addition, Porchlight was not able to provide documentation to show proper procurement procedures were followed on purchases. Lastly, Porchlight, Inc. did not file its performance report for the grant award in a timely manner.
Criteria – Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “effective control over, and accountability for, all funds, property, and other assets.” In addition, the federal grant contract provided a requirement for specific procurement requirements for the purchase of goods and materials. Lastly, the federal grant contract provided a performance report be submitted within the provided guidelines.
Cause – During the audit year, there was turnover in Porchlight, Inc.’s business office which contributed to the lack of transaction tracking. Porchlight, Inc. is working on streamlining and implementing processes to address the deficiencies noted in the condition paragraph.
Effect – A material weakness in internal control over compliance and an instance of noncompliance exists due to failure to provide accurate data for testing of period of performance, documentation that procurement procedures were followed and the performance report in order to meet contract submission deadlines.
Recommendation – We recommend Porchlight, Inc.'s implement procedures to ensure accurate tracking of data for testing of period of performance, procurement procedures are followed in accordance with policies and procedures and the grant award and performance reports are prepared accurately and submitted timely.
View of Responsible Officials – Management agrees with the assessment and has committed to a corrective action plan.