FAC Explorer

Finding 1224620 (2024-004)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2026-07-24
Audit: 407853
Organization: Knoxville Knox County Community Action Committee (TN)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: Internal controls over general disbursements are inadequate, with significant deficiencies noted in compliance documentation for both the Coronavirus State and Local Fiscal Recovery Funds and the Federal Transit Cluster programs.
  • Impacted Requirements: Uniform Guidance mandates that non-Federal entities maintain 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 properly designed, implemented, and functioning.

Finding Text

Internal Control Over General Disbursements (Repeat Finding) 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, Tennessee; City of Knoxville, Tennessee Pass-Through Number: 24.471; C-22-0147 Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Transportation Federal Program Name: Federal Transit Cluster Federal Award Identification Number and Year: TN-2020-041; TN-2020-006; TN-2021-013; TN-2021-027; TN-2022-007; TN-2023-006; TN-2023-007 Direct Award Assistance Listing Number: 20.507; 20.526 Award Period: July 1, 2023 – June 30, 2024 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: For the Coronavirus State and Local Fiscal Recovery Funds Program 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. For the Federal Transit Cluster Program CLA selected 8 general disbursements to test controls and compliance and evidence that internal controls over compliance was not provided for 6 of these selections. The transactions lacking evidence of internal controls in both programs were all associated with transportation costs charged to Knox CAC from Knox County. Based on supporting documentation provided no noncompliance was noted; however, the absence of observable internal controls resulted in a significant deficiency 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: This is a repeat of finding 2023-004 only for ALN 21.027. Recommendation: Implement a formal way to document the review and approval of transportation costs charged from Knox County 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

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 Knox County to provide evidence that internal controls are effectively designed and implemented and functioning. Explanation of disagreement with audit finding: There is no disagreement with the finding regarding the need to formally document the review and approval of transportation costs charged by the Knox County Service Center (Garage). Action taken in response to finding: CAC’s 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. Because the FY2023 and FY2024 audits were conducted concurrently, the enhanced documentation procedures implemented during FY2026 were not yet in operation during the FY2024 audit period. CAC implemented the following corrective actions: • Monthly review and approval of transportation charges by designated Finance personnel, including signature and date of review • Retention of supporting documentation with the monthly review to provide evidence of management approval 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 Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1224601 2024-004
    Material Weakness Repeat
  • 1224602 2024-004
    Material Weakness Repeat
  • 1224603 2024-004
    Material Weakness Repeat
  • 1224604 2024-004
    Material Weakness Repeat
  • 1224605 2024-004
    Material Weakness Repeat
  • 1224606 2024-004
    Material Weakness Repeat
  • 1224607 2024-004
    Material Weakness Repeat
  • 1224608 2024-005
    Material Weakness Repeat
  • 1224609 2024-005
    Material Weakness Repeat
  • 1224610 2024-005
    Material Weakness Repeat
  • 1224611 2024-005
    Material Weakness Repeat
  • 1224612 2024-005
    Material Weakness Repeat
  • 1224613 2024-005
    Material Weakness Repeat
  • 1224614 2024-005
    Material Weakness Repeat
  • 1224615 2024-004
    Material Weakness Repeat
  • 1224616 2024-004
    Material Weakness Repeat
  • 1224617 2024-004
    Material Weakness Repeat
  • 1224618 2024-004
    Material Weakness Repeat
  • 1224619 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $5.79M
93.499 LOW INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM $810,723
94.006 AMERICORPS STATE AND NATIONAL 94.006 $779,080
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $698,622
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $579,388
93.569 COMMUNITY SERVICES BLOCK GRANT $573,147
94.011 AMERICORPS SENIORS FOSTER GRANDPARENT PROGRAM (FGP) 94.011 $469,648
94.016 AMERICORPS SENIORS SENIOR COMPANION PROGRAM (SCP) 94.016 $355,432
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $354,591
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $339,695
84.042 TRIO STUDENT SUPPORT SERVICES $329,504
14.889 CHOICE NEIGHBORHOODS IMPLEMENTATION GRANTS $325,286
10.569 EMERGENCY FOOD ASSISTANCE PROGRAM (FOOD COMMODITIES) $304,517
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $287,812
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $287,008
17.235 SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM $261,807
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $239,757
14.900 LEAD HAZARD REDUCTION GRANT PROGRAM $225,929
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $210,865
93.493 CONGRESSIONAL DIRECTIVES $209,226
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $148,453
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $130,362
14.267 CONTINUUM OF CARE PROGRAM $125,868
15.944 NATURAL RESOURCE STEWARDSHIP $109,000
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $105,608
17.235 SUPPORTIVE HOUSING PROGRAM $77,144
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $70,541
93.667 SOCIAL SERVICES BLOCK GRANT $66,686
16.575 CRIME VICTIM ASSISTANCE $65,000
10.568 EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS) $58,787
94.002 AMERICORPS SENIORS RETIRED AND SENIOR VOLUNTEER PROGRAM (RSVP) 94.002 $54,045
94.013 AMERICORPS VOLUNTEERS IN SERVICE TO AMERICA 94.013 $51,684
93.747 ELDER ABUSE PREVENTION INTERVENTIONS PROGRAM $44,386
93.048 SPECIAL PROGRAMS FOR THE AGING, TITLE IV, AND TITLE II, DISCRETIONARY PROJECTS $30,000
14.276 YOUTH HOMELESSNESS DEMONSTRATION PROGRAM $27,048
21.009 VOLUNTEER INCOME TAX ASSISTANCE (VITA) MATCHING GRANT PROGRAM $25,000
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $25,000
20.507 FEDERAL TRANSIT FORMULA GRANTS $20,000
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $15,464
93.779 CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS) RESEARCH, DEMONSTRATIONS AND EVALUATIONS $10,000
10.558 CHILD AND ADULT CARE FOOD PROGRAM $8,182
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $3,845