Finding 1158124 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 370045
Organization: Tulsa Community Foundation (OK)
Auditor: Hogantaylor LLP

AI Summary

  • Core Issue: The Foundation's affiliates lack formal internal controls for accurate and timely performance reporting on federal grants.
  • Impacted Requirements: Quarterly and annual reports mandated by Tulsa County and the City of Tulsa were not submitted on time or at all.
  • Recommended Follow-Up: Appoint a dedicated individual to oversee reporting and establish a review process to ensure compliance with all reporting requirements.

Finding Text

Finding: Item 2024-002 – Performance Reporting Significant Deficiency Federal Program – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number – 21.027 Pass-through Grantor's Numbers – CMF 2021125, 2159FR0292, 2159FR0310, 2159FR0317, 2159FR0334, 2159FR0318 Federal Award Year – December 31, 2024 Federal Agency – U.S. Department of Treasury Pass-Through Entity – Tulsa County/City of Tulsa Criteria: Tulsa County required both quarterly and annual performance reports to be submitted per the sub-recipient agreement for this federal grant. The City of Tulsa required annual and monthly performance reports to be submitted per the sub-recipient agreements for this federal grant. Condition/context: The Foundation had one affiliated entity who received federal funding through Tulsa County, however there were no formally established internal controls surrounding the accuracy of and timely submission for the required annual and quarterly reports. The Foundation has two affiliated entities who received federal funding through sub-recipient agreements with the City of Tulsa. One entity submitted their monthly report after the due date per the sub-recipient agreement, and the other entity failed to file three monthly reports and their annual report per the sub-recipient agreement requirements. Cause: The Foundation's affiliates lacked formal review processes over performance reporting requirements to the pass-through agencies. Effect: Lack of internal control policies could result in instances of noncompliance with federal standards. This could result in additional oversight of the awarding entities, or future lack of funding. Questioned cost: Not applicable. Repeat finding: This is a repeat finding for lack of formally established internal controls surrounding the accuracy of and timely submission of the required annual quarterly reports (2023-004). This is not a repeat finding for lack of report submission or failure to submit timely. Recommendation: The Foundation's affiliates should appoint an individual to oversee all reporting requirements relating to federal awards received and establish a proper review process to ensure performance reports are accurate and filed timely. View of responsible officials: Management's response is reported in "Corrective Action Plan" at the end of this report.

Corrective Action Plan

Description of Finding: The Foundation and its affiliates did not ensure proper performance reporting was completed for individual grants. Statement of Concurrence or Nonconcurrence: Tulsa Community Foundation agrees with this finding. Corrective Action: The Foundation will collaborate more closely with project partners of federal grants to establish reporting deadlines and monitor individual reporting requirements throughout the year. This will be in tandem with establishing effective internal controls as per UGG 2 CFR 200.303. The Foundation will take steps to ensure that all required reports are submitted in a timely manner and all relevant documentation and evidence of reports’ submissions are retained in an effective manner. To support this corrective action, the Foundation has hired an experienced senior accountant to strengthen internal capacity. The qualified senior accountant will oversee federal grants and ensure ongoing compliance with internal controls and help to prevent recurrence of the issue. Name of Contact Person: Kristin Karlin, Controller Projected Completion Date: The Foundation projects the new policy documentation to be complete and the process for internal monitoring documentation to be established by December 31, 2025.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties Reporting Significant Deficiency

Other Findings in this Audit

  • 1158111 2024-001
    Material Weakness Repeat
  • 1158112 2024-002
    Material Weakness Repeat
  • 1158113 2024-003
    Material Weakness Repeat
  • 1158114 2024-001
    Material Weakness Repeat
  • 1158115 2024-002
    Material Weakness Repeat
  • 1158116 2024-003
    Material Weakness Repeat
  • 1158117 2024-001
    Material Weakness Repeat
  • 1158118 2024-002
    Material Weakness Repeat
  • 1158119 2024-003
    Material Weakness Repeat
  • 1158120 2024-001
    Material Weakness Repeat
  • 1158121 2024-002
    Material Weakness Repeat
  • 1158122 2024-003
    Material Weakness Repeat
  • 1158123 2024-001
    Material Weakness Repeat
  • 1158125 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance $372,627
14.276 Youth Homelessness Demonstration Program $174,493
11.039 Regional Technology and Innovation Hubs $61,453
21.027 Coronavirus State and Local Fiscal Recovery Funds $40,000
11.024 Build to Scale $812