Finding Text
U.S. Department of Homeland Security Pass-through Entity: North Carolina Department of Public Safety, Division of Emergency Management Program Name: Disaster Grants – Public Assistance Federal Assistance Listing Number 97.036 Significant Deficiency, Nonmaterial Noncompliance – Reporting Finding 2022-006 Criteria or Specific Requirement: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Per 2 CFR 200.334 the recipient must retain all federal award records for three years from the date of submission of their final financial report. Condition: During the audit, we tested ten reports and noted the following: a) There were 10 instances out of 10 reports tested where the Town was unable to provide evidence that the reports were reviewed prior to submission. b) There were 5 instances out of 10 reports tested where the Town submitted the reports after the due date. Questioned Costs: None. Effect: The absence of documented review controls increase the risk that reports may contain errors or omissions that are not detected prior to submission, and reports may be submitted late, resulting in potential noncompliance with federal reporting requirements. Cause: The Town did not have a formal policy or practice to ensure documentation was retained to evidence review and submission of all reports. Recommendation: The Town should ensure these policies and best practices are adhered to ensure all submitted reports and underlying data are retained in accordance with the Uniform Grant Guidance requirements. Management Response: Management agrees with the findings and is implementing corrective procedures, which are further discussed in the corrective action plan.