Finding Text
Finding 2022-001 Significant Deficiency: Equipment and Real Property Management ? Control and Compliance Finding; Special Test and Control Provisions - Control and Compliance Finding ALN 32.009 ? Emergency Connectivity Fund Federal Agency: Federal Communication Commission Pass-Through Entity: Universal Service Administrative Co. Criteria Or Specific Requirement: Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal program. Condition: The signed application related to the checking out of either a hotspot or Chromebook offered by the Library was not retained. This application should be retained and information used to determine eligibility and proper inclusion in the system. Cause: Controls over compliance put in place by management were not operating effectively as it relates to these compliance requirements and therefore the compliance with equipment and real property and special tests and provision requirements were not met. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: Not applicable. Context: Internal controls as designed by the Library were to ensure patrons signed the relevant application depending on the type of equipment requested. A signed application was not retained for 4 of 40 patrons tested for equipment and real property and special test and provision requirements. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management review its processes and controls surrounding applicable compliance requirements to improve the existing system such that it will ensure compliance with the requirements of federal grants. Views Of Responsible Officials: Management will review current procedures and implement tightened procedures to assure that all applications are completed, signed, dated and retained correctly for any equipment loan to Library patrons.