Finding Text
Type of finding: Federal Award Situation: Significant deficiency; compliance with federal regulations. Program: Disaster Grants – Public Assistance Disaster Grants – Public Assistance Compliance Requirements: Period of Performance Prior-Year(s) Audit Finding(s): None Questioned Costs: Not determined. Condition Form 90-91 for each approved project was not submitted for our evaluation; therefore we could not verify the period of performance for selected current year expenses. Context: As stated in finding 2025-004, the Municipality is required to submit quarterly progress reports to the state for each individual approved project worksheet. For the quarter ended on June 30, 2025, the Municipality had 154 projects that were required to submit quarterly progress reports, therefore, the Municipality has 154 forms 90-91 which were not submitted for our evaluation. Criteria: Federal regulations in 44 CFR 206.202 state that as part of the application procedures, the applicant, assisted by the State as appropriate, will prepare a project worksheet (FEMA Form 90-91) for each project. The project worksheet must identify the eligible scope of work and must include a quantitative estimate for the eligible work. The 2025 Compliance Supplement for the ALN 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters) state that period of performance of a specific subaward can be confirmed by verifying the period of performance at the top of the Subgrant Applicant Application – FEMA Form 90-91. Cause: There is a lack of adequate knowledge and training among personnel assigned to the management of this federal award. Effect: These conditions expose the program to noncompliance with the period of performance requirements established in the grant agreement. Furthermore, the Municipality may be at risk of the grantor questioning the allowability and use of federal funds. Auditor’s recommendation: The personnel or Department responsible should identify, compile, and retain all documentation required under the grant agreement. Additionally, it is essential for the Municipality to develop, document, and implement a comprehensive training program, along with written guidelines and procedures, for all personnel involved, directly or indirectly, in the management of these federal funds. Views of Responsible officials and Corrective Actions: In response to the Auditor’s recommendations, the Municipality will establish formal procedures to ensure that all required forms, including Form 90-91, are properly completed, maintained, and submitted in accordance with applicable grant requirements. Additionally, all supporting documentation related to the period of performance for each project will be identified, organized, and maintained, including approved project worksheets, grant award documentation, and related financial records. Furthermore, monitoring mechanisms and periodic reviews will be implemented to ensure ongoing compliance with applicable requirements and the timely availability of required documentation for audit and monitoring purposes. Audit Status: Unresolved