Finding 1136964 (2024-003)

2024-003: Reporting Program: Coronavirus State and Local Fiscal Recovery Funds CFDA No.: 21.027 Federal Grantor: U.S. Department of the Treasury Passed-through: Montgomery County Grant No.: MPRF-22-435, ACLAMO Expansion ARPA Grant Type of Finding: Significant Deficiency in Internal Control Condition: The organization did not retain copies of the quarterly reports filed with the county or confirmation of the submission. Criteria: Under the subrecipient agreement, the organization was required to submit quarterly reports to Montgomery County by the 15th of the following month. Internal controls should be in place over retention of supporting documentation to verify reports were filed accurately and timely. Cause: Internal controls over document retention for filed reports are inadequately designed and copies of reports or proof of submission were not maintained. Effect: Because copies of reports or proof of submission were not maintained, there is no supporting documentation to show that the reports were filed accurately or timely. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A sample of 4 quarterly reports was selected for testing of Reporting. Repeat Finding from Prior Year: No. Recommendation: The organization should develop procedures to ensure that copies of filed reports or proof of submission are maintained. Views of Responsible Officials and Planned Corrective Action: We agree with the auditors’ comments, and the following action will be taken to improve the situation. The Interim Executive Director will assume responsibility for submitting all required quarterly reports related to ARPA funding. Following report submission, we will request confirmation of receipt and a copy of the submitted report, which will be stored on the Financial Team SharePoint site. ACLAMO will also implement a formal tracking system to document submission dates, confirmation receipts, and responsible staff members. Relevant team members will receive training on proper document retention procedures.