Finding Text
Federal Agency: U.S. Department of Homeland Security (DHS), Federal Emergency Management Agency (FEMA) Federal Program: Hazard Mitigation Grant Program (HMGP) Assistance Listing Number: 97.039 Federal Award Identification Number and Year: Pass-Through Agency: Pennsylvania Emergency Management Agency (PEMA) Pass-Through Number(s): PEMA-2023-060, C950004170, C950004177 Award Period: August 5, 2021 to August 5, 2027, September 10, 2021 to September 10, 2025 and September 10, 2021 to January 8, 2026 Finding Type: Significant Deficiency in Internal Control Over Compliance – Reporting Criteria :Management is responsible for maintaining effective internal controls over federal program reporting activities, including oversight of reports prepared by third parties. Reports submitted on behalf of the Township should be reviewed and approved by management prior to submission to help ensure accuracy, completeness, and compliance with grant requirements. Condition :Audit testing of four quarterly HMGP progress reports determined that all required reports were submitted. However, one report submitted by an outside consultant did not contain evidence of management review and approval prior to submission. The remaining three reports were prepared, reviewed, and submitted by management. Context : A sample of four quarterly reports was tested. One of four reports tested (25%) lacked evidence of management review and approval prior to submission. The exception related to the only report submitted by an outside consultant. Cause : Management did not establish or consistently perform procedures requiring documented review and approval of reports prepared and submitted by third-party consultants before submission to the granting agency. Effect or Potential Effect : Without documented management review and approval, errors, omissions, or inaccuracies in consultant-prepared reports may not be identified prior to submission, increasing the risk of inaccurate reporting to the granting agency. Questioned Costs: None identified. Repeat Finding: No. Recommendation: We recommend management implement procedures requiring documented review and approval of all grant reports prepared by outside consultants prior to submission. Documentation should be retained to demonstrate management's oversight and review. Views of Responsible Officials and Corrective Action Plan There is no disagreement with the audit finding. Management understands the importance of reviewing the progress reports. Management believes that the one instance out of the four tested was an isolated instance. The Township will implement policies and procedures to ensure that the Township will comply going forward. These policies include management review of the statements and a clear notation of the approval.