Finding Text
Criteria: Per the Texas Administrative Code (TAC) §3.2527, grantees must periodically submit reports regarding grant information, performance, and progress towards the grant goals and objectives. Also, per the Texas Administrative Code (TAC) §3.2507, a financial status report may be submitted as often as monthly but must be submitted at least quarterly. Required quarterly financial status reports (FSRs) are due 22 days after the end of each calendar quarter. Condition: During a programmatic desk review for the Homeland Security Grant Operation Stonegarden, award number 3007209, the federal awarding agency notified the City of late submission of required reports and recommended implementation of a policy detailing submission procedures for progress reports. The City failed to submit timely four out of four required performance reports, as well as the general assessment and quarterly FSRs. Cause: The City has a written policy in place (“Policy 67”) that meets the requirements recommended by the awarding agency; however, the City did not properly follow the established policy. The breakdown in compliance was to be due to a lack of effective internal monitoring to ensure adherence to established reporting procedures. Effect: The City failed to submit four out of four required performance reports, a general assessment report, and a quarterly FSR in a timely manner. Recommendation: We recommend that management strengthen monitoring controls over reporting deadlines by implementing formal procedures, including: • Maintaining a centralized reporting calendar for all grant requirements; • Assigning clear responsibility for report preparation, review, and submission; and • Implementing documented supervisory review prior to submission to ensure timely compliance with grant reporting requirements. Strengthening these controls will help ensure timely submission of required reports and reduce the risk of sanctions or funding interruptions. Management’s response: Management agrees with auditor’s recommendation. Refer to Corrective Action Plan.