Finding 1162717 (2024-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-11-19
Audit: 372349
Organization: Dreaming Out Loud, Inc. (DC)

AI Summary

  • Core Issue: DOL failed to submit programmatic and financial reports on time for Federal pass-through awards, violating grant agreement deadlines.
  • Impacted Requirements: Non-compliance with §200.329, which mandates timely performance reporting to the Federal awarding agency.
  • Recommended Follow-Up: DOL should enhance internal controls and review policies to ensure all reports are submitted by the required deadlines.

Finding Text

Finding: 2024-005 Timely Reporting Under Federal Pass-Through Awards (Significant Deficiency) Information on the Federal Programs: ALN #21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria or Specific Requirement (including Statutory, Regulatory, or Other Citation): §200.329 Monitoring and reporting program performance (c)(1) states that “The non-Federal entity must submit performance reports at the interval required by the Federal awarding agency”. Condition: As part of our compliance audit over DOL’s programmatic reporting requirements under its Federal pass-through awards, we noted two instances in which programmatic reports were not submitted to the Federal pass-through entity by the deadline stated in the grant agreement. We also noted three instances in which the financial reports were submitted after the required due dates. Ultimately, all reports were completed and accepted by the pass-through donor. Cause: The delays in report submissions appears to be the result of administrative and capacity challenges with respect to gathering and compiling the required data within the required timeframe. Effect or Potential Effect: Late program report submissions result in delays of program monitoring and evaluation. Late financial report submission could result in delay of project fund reimbursement or advances. Questioned Costs: N/A Context: As a Federal award pass-through recipient, DOL is responsible for oversight of the operations of the Federal award supported activities. DOL must monitor its activities under Federal pass-through awards to assure compliance with applicable Federal requirements and that performance expectations are being achieved. Federal awards require varying financial and programmatic reports to be submitted according to the timeframe stated in the grant agreement. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that DOL review its policies and procedures and strengthen internal controls to ensure that all financial and programmatic reports are submitted to the passthrough donor by the deadlines stipulated in the terms of the agreement.

Corrective Action Plan

Views of Responsible Officials: We agree with the auditor’s findings and recommendations. We are going to review, strengthen, and more closely supervise all of our accounting procedures including response time to the Development Team’s requests for reports. We are also engaging in discussions about how and when the Development Team requests information for the needed reports. A Grant Manager has been hired and we hope that Grantseeker, our grant tracking program, can be utilized more effectively which include tracking reporting timelines.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties Cash Management Reporting Significant Deficiency

Other Findings in this Audit

  • 1162713 2024-004
    Material Weakness Repeat
  • 1162714 2024-005
    Material Weakness Repeat
  • 1162715 2024-006
    Material Weakness Repeat
  • 1162716 2024-004
    Material Weakness Repeat
  • 1162718 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.177 REGIONAL FOOD SYSTEM PARTNERSHIPS $336,934
10.443 OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED AND VETERAN FARMERS AND RANCHERS $177,971
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $118,192
10.175 FARMERS MARKET AND LOCAL FOOD PROMOTION PROGRAM $100