Finding 1162988 (2024-002)

2024-002 – ALN – 23.002 - Appalachian Area Development – Equipment and Real Property Management: Lack of control for filing Notice of Federal Interest (New Finding) Criteria : Per the grant agreement, any purchase of equipment or real property greater than $100,000 requires the organization to file a Notice of Federal Interest. Condition : All the equipment purchases greater than $100,000 (3 purchases) did not have Notice of Federal Interest filed. Cause : The Organization was unaware of the compliance requirement. Effect : Failure to file Notice of Federal Interest may result in the federal program not being properly monitored, thus resulting in potential noncompliance with program requirements. Recommendation : We recommend management implement a level of review by someone with knowledge of the grant requirements of the program. Management’s Response : AOMC acknowledges that notices of federal interest were not filed for equipment purchases over $100,000 as required by the grant agreement. AOMC is currently working with the grantors to file the appropriate notices of federal interest for all applicable equipment. In addition, AOMC is updating its internal policies to clearly include this requirement so that all future purchases meeting this threshold are properly documented and compliant with grant guidelines.