Finding Text
Finding 2024-001 – Reporting (Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance)(See table in section III of the pdf) Criteria – In accordance with the Uniform Guidance (2 CFR Part 200) and applicable federal regulations, recipients of federal awards are mandated to submit required financial reports within specified deadlines. Furthermore, recipients are required to maintain adequate documentation that serves as verifiable proof of submission for all required reports, as outlined in the compliance supplement. In accordance with Uniform Guidance, the Agency is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition/context – The population consisted of all quarterly and monthly reporting by location. For the reports selected for testing, the Agency did not consistently retain verifiable documentation evidencing the timely submission of required financial reports. Effect – With respect to federal award reporting it appears that not all reports were filed timely and certain program reporting was incorrect. In one instance, we tested the program reporting and related reimbursement request and they were not correct, however, the amount paid to the Agency was correct based on the allowable costs and the terms of the award. As such there were no questioned costs. In addition, the Agency was initially unable to provide the underlining population for the Q2 Idaho submission of $122,363. However, the Agency was able to reproduce a population for Q2 Idaho which resulted in allowable costs in excess of the original request. Cause – The primary cause of this finding is attributed to turnover, which resulted in a breakdown of established processes, oversight and communication protocols related to the timely submission, preparation and review of required grant compliance reports. Repeat finding – This is a repeat and modified finding of 2023-001. Recommendation – We recommend that the Agency establish and implement a comprehensive documentation, tracking, and review system for all required grant compliance reports. This system should include a checklist of reporting requirements, corresponding deadlines, appropriate review, and a mechanism for retaining verifiable proof of submission. Views of responsible officials – The responsible officials acknowledge the finding, concur with the recommendation and noted that while related corrective action has been taken, given the timing of the audits, the effective date of that action was subsequent to the period under audit.