FAC Explorer

Finding 1213858 (2023-004)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2026-05-06
Audit: 400695
Organization: Knoxville Knox County Community Action Committee (TN)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance for general disbursements related to transportation costs.
  • Impacted Requirements: Uniform Guidance mandates effective internal controls to ensure compliance with federal statutes and regulations.
  • Recommended Follow-Up: Establish a formal documentation process for reviewing and approving transportation costs to demonstrate that internal controls are functioning properly.

Finding Text

Internal Control Over General Disbursements Federal Agency: U.S. Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year: 1505-0271 2022 Pass-Through Agency: Knox County Pass-Through Number: Not Available Assistance Listing Number: 21.027 Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or specific requirement: Uniform Guidance requires non-Federal entities to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes, regulations, and terms and conditions, safeguards assets, and for preventing, detecting, and correcting noncompliance. Condition: CLA selected 40 general disbursements to test controls and compliance and evidence that internal controls over compliance was not provided for 15 of these selections. The 15 transactions were all associated with transportation costs charged to Knox CAC from the Knox County. Based on supporting documentation provided no noncompliance was noted; however, the absence of observable internal controls resulted in a material weakness in internal control. Questioned costs: None noted. Context: Evidence that internal controls are designed effectively and implemented should be appropriately documented and maintained to allow for review during the audit process. Without this evidence the auditor is unable to verify these internal controls were designed effectively and implemented. Cause: Cost related to transportation charged directly to Knox CAC from the County are reviewed on a monthly basis, however, documentation of that review was not properly documented and/or retained by Knox CAC to provide as support that the control was properly designed and implemented. Effect: When internal controls are not designed and implemented effectively it could lead to noncompliance within the program which could result in loss of funding or liability to reimburse federal funds. Repeat Finding: Not a repeat finding. Recommendation: Implement a formal way to document the review and approval of transportation costs charged from the Knox County garage to provide evidence that internal controls are effectively designed and implemented and functioning. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of the Treasury Internal Control Over General Disbursements Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Recommendation: Implement a formal way to document the review and approval of transportation costs charged from the Knox County garage to provide evidence that internal controls are effectively designed and implemented. Explanation of disagreement with audit finding: There is no disagreement with the finding regarding the formal documentation of the services and approval of transportation cost charged from the Knox County Service Center (garage.) Action taken in response to finding: Agency vehicles are serviced at the Knox County Service Center (garage), with services billed monthly. Although transportation charges from the County were reviewed monthly, documentation of that review was not formally retained. CAC is implementing the following corrective actions: • Monthly Transportation Costs will be signed and dated by reviewer. • Establish grant compliance documentation retention protocol. • Establish Centralized federal grant compliance documentation repository. Management will perform periodic review to ensure documentation controls are consistently applied. Name(s) of the contact person(s) responsible for corrective action: Misty Goodwin, Chief Executive Officer, Anna Roeder, Chief Financial Officer. Planned completion date for corrective action plan: Documentation procedures were implemented in February 2026 and remain operational with ongoing monitoring.

Categories

Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1213852 2023-004
    Material Weakness Repeat
  • 1213853 2023-004
    Material Weakness Repeat
  • 1213854 2023-004
    Material Weakness Repeat
  • 1213855 2023-004
    Material Weakness Repeat
  • 1213856 2023-004
    Material Weakness Repeat
  • 1213857 2023-004
    Material Weakness Repeat
  • 1213859 2023-005
    Material Weakness Repeat
  • 1213860 2023-005
    Material Weakness Repeat
  • 1213861 2023-005
    Material Weakness Repeat
  • 1213862 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $5.84M
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $1.08M
93.499 LOW INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM $790,647
20.507 FEDERAL TRANSIT FORMULA GRANTS $735,098
94.006 AMERICORPS STATE AND NATIONAL 94.006 $642,470
14.900 LEAD HAZARD REDUCTION GRANT PROGRAM $572,683
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $492,721
94.011 AMERICORPS SENIORS FOSTER GRANDPARENT PROGRAM (FGP) 94.011 $404,533
93.569 COMMUNITY SERVICES BLOCK GRANT $315,755
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $288,135
94.016 AMERICORPS SENIORS SENIOR COMPANION PROGRAM (SCP) 94.016 $217,105
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $199,318
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $172,439
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $162,602
14.267 CONTINUUM OF CARE PROGRAM $115,944
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $106,757
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $88,364
16.575 CRIME VICTIM ASSISTANCE $64,981
93.667 SOCIAL SERVICES BLOCK GRANT $60,832
93.048 SPECIAL PROGRAMS FOR THE AGING, TITLE IV, AND TITLE II, DISCRETIONARY PROJECTS $60,000
94.002 AMERICORPS SENIORS RETIRED AND SENIOR VOLUNTEER PROGRAM (RSVP) 94.002 $58,351
10.568 EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS) $55,000
14.889 CHOICE NEIGHBORHOODS IMPLEMENTATION GRANTS $52,915
10.558 CHILD AND ADULT CARE FOOD PROGRAM $51,106
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $49,514
15.944 NATURAL RESOURCE STEWARDSHIP $47,000
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $31,551
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $25,000
17.235 SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM $23,510
21.009 VOLUNTEER INCOME TAX ASSISTANCE (VITA) MATCHING GRANT PROGRAM $21,500
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $19,135
94.013 AMERICORPS VOLUNTEERS IN SERVICE TO AMERICA 94.013 $16,435
93.071 MEDICARE ENROLLMENT ASSISTANCE PROGRAM $10,000
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3,579
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $-11,086