Finding Text
Federal Program: AL 11.307 – Economic Adjustment Assistance
Criteria: A good system of internal controls allows for the compliance with Uniform Guidance to
monitor funds that are passed through to subrecipients and the continued stewardship of those
federal dollars.
Condition: For the year ended August 31, 2024, we discussed the policies and procedures in
effect for the Chamber Foundation employees to adequately monitor the subrecipients under
the Economic Adjustment Assistance Grant. Although the policies and procedures in effect
during the year ended August 31, 2024 were appropriately designed, they were not completed
throughout the year.
Cause: There was a general misunderstanding on the process of completing subrecipient
monitoring controls throughout the year.
Effect: Noncompliance will not be prevented, or detected and corrected in a timely manner.
Questioned costs: None
Repeat finding: This is not a repeat finding.
Recommendation: The subrecipient monitoring policies and procedures should be updated to
include specific milestones and broken down into specific tasks that are to be achieved
throughout the year. Redundancies and cross-training could be included to reduce the risk that
lapses in monitoring occur due to staff turnover or extended absences. In addition, training for
all staff upon employment and periodically throughout the year over EDA policies and
procedures would allow for better clarity and understanding.
Views of Responsible Officials: Management recognizes the deficiency and plans to implement
the auditor’s recommendations.