Finding Text
FINDING 2025‐004— REPORTING — MATERIAL WEAKNESS IN INTERNAL CONTROLS OVER COMPLIANCE AND NONCOMPLIANCE FEDERAL PROGRAM: Coronavirus State and Local Fiscal Recovery Funds ASSISTANCE LISTING NUMBER: 21.027 YEAR(S): 2025 FEDERAL AGENCY: Department Of Treasury PASS‐THROUGH AGENCIES: State of Oregon and Multnomah County Criteria - The contract JOHS-SVCSGEN-14303-2023 that is passed through the Multnomah County and the contract CVI-2023-The Salvation Army Medford-00069 that is passed through the state of Oregon have various annual, quarterly, and monthly reporting requirements that contain both financial and non-financial (performance) information. Condition/Context - The JOHS-SVCSGEN-14303-2023 contract required the submission of: • 4 quarterly performance reports during the fiscal year. Management could not provide evidence that any of the performance reports were prepared, reviewed or submitted to the grantor. • Monthly invoices are due at the end of the following month. All 9 reports (100% of the population) were properly reviewed, and 5 reports were submitted to the grantor after the submission deadline. • The annual equity plan report. Management provided the prepared report, however, could not provide evidence that the report was reviewed or submitted to the grantor. The CVI-2023-The Salvation Army Medford-00069 contract required the submission of: • The annual CVI Statistical Report and the CVI End-of-Grant Report. Management could not provide evidence that these reports were prepared, reviewed or submitted to the grantor. • 2 quarterly project status reports. Management provided both reports, but one report did not have evidence of a review nor proof of submission to the grantor. • Quarterly submissions of a CVI Financial/Expenditure Report. Out of a sample of 2 reports, no issues were noted. Cause - Management did not have appropriate controls that were operating effectively to ensure the reports were reviewed and submitted to the grantor timely. Management also did not retain documentation to evidence the timely submission of certain reports. Effect - The grantor may withhold funding if timely report submissions are not received in accordance with the grant agreement. Questioned Cost - Not Applicable Recommendation - Management should design and implement a control that ensures reports are reviewed and submitted in a timely manner. Further, management should retain documentation to evidence the preparation and submission of all reports. View of Responsible Officials - See Corrective Action Plan