Finding 1140376 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-05
Audit: 358106
Organization: Learning Grove, Inc. (KY)

AI Summary

  • Core Issue: The Organization failed to submit required quarterly and annual performance reports to Hamilton County, only providing Final Reports when prompted.
  • Impacted Requirements: Reports must be submitted quarterly within 30 days and annually within 60 days, as per grant agreements and federal regulations.
  • Recommended Follow-Up: Establish clear procedures for report preparation and submission, designate responsible individuals, and implement a tracking system for deadlines to ensure compliance.

Finding Text

Criteria: Per CFR 200.329(c)(1) The recipient or subrecipient must submit performance reports as required by the Federal award. Intervals must be no less frequent than annually nor more frequent than quarterly except if specific conditions are applied. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period. Alternatively, the Federal agency or pass-through entity may require annual reports before the anniversary dates of multiple-year Federal awards.” Per the executed grant agreements, the grants require a quarterly report to be submitted within 30 days of the conclusion of each quarter and an annual report within 60 days at the conclusion of each calendar year. Condition: During our testing of the Organization’s compliance with the reporting requirements, we noted no quarterly or annual reports were submitted to Hamilton County. Only Final Reports were submitted once Hamilton County reached out. Cause: Controls were not in place to ensure required reports were submitted due to a lack of understanding the reporting requirements within the grant agreement. Effect: The untimely submission of the reports prevents the pass-through entity from effectively monitoring the progress of the funded project and making informed decisions. Additionally, consistent failure to meet reporting requirements could negatively impact the Organization’s ability for future federal awards. Questioned Costs: None Context: This is not a systemic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Organization establish procedures for the preparation, review and timely submission of all reporting requirements. This can include implementing a system to track reporting deadlines and timely submission as well as designating individuals with the responsibilities of preparation, review, and submission of reports. Additionally, we recommend the Organization designate someone to review the grant documents for all compliance requirements to ensure nothing is missed. Management Response: The Advancement and Finance teams will create an updated Grants Management process. The Grants Management process will be documented and clearly define roles for Advancement and Finance staff. Additionally, a flowchart will be created to define what type of grant has been awarded (conditional vs. unconditional). The process will ensure all awarded grants are reviewed for all performance, outcomes, invoicing, and reporting requirements. The process will define who sets up calendar reminders for grant milestones (i.e., reporting) and how Program staff will be selected to receive these calendar reminders.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 563934 2024-001
    Material Weakness
  • 563935 2024-001
    Material Weakness
  • 1140377 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $345,037
84.425 Education Stabilization Fund $227,438
84.287 Twenty-First Century Community Learning Centers $192,533
21.027 Coronavirus State and Local Fiscal Recovery Funds $86,475
93.558 Temporary Assistance for Needy Families $55,670
17.258 Wioa Adult Program $11,000