Finding 29806 (2022-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-16

AI Summary

  • Core Issue: Monthly grant reports were submitted without proper review, risking inaccuracies.
  • Impacted Requirements: Internal controls need better communication and staff training to ensure accurate reporting.
  • Recommended Follow-up: Management should enhance training on internal controls for staff involved in grant reporting.

Finding Text

AL# 93.568 Criteria ? The granting agency requires that the grantee prepare financial and production status reports on a monthly basis. Internal controls should be adequately designed and implemented to allow for the accurate and timely preparation of these reports. Condition ? For the year ended June 30, 2022, we identified monthly grant reports that were not reviewed prior to being submitted to the granting agency. Cause ? Internal controls, while appropriately designed, are not effectively communicated and entity staff have not been adequately trained on their roles within internal controls surrounding grant reporting. Effect or Potential Effect ? There is the potential that grant reports will be submitted that are not accurate or are misleading. Questioned Costs ? None noted. Context ? As part of our testing, we selected four months to view documentation to support the independent review of the grant reports prior to being filed with the granting agency. Of the four months selected for testing, we were unable to view documentation for three of those months. Repeat Finding ? This is a not a repeat finding. Recommendation ? Entity management and staff involved in the preparation of the grant reports should review the internal controls related to grant reports to allow for appropriate training and implementation of established internal controls.

Corrective Action Plan

2022-004 Review of Grant Reporting Contact Person ? Perry Lundon, CEO Planned Corrective Action ? Entity management has discussed the process around grant report preparation and will reinstate the review of grant reports going forward. Completion Date ? Fiscal year 2023

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 29805 2022-003
    Significant Deficiency Repeat
  • 29807 2022-005
    Significant Deficiency
  • 29808 2022-003
    Significant Deficiency Repeat
  • 29809 2022-004
    Significant Deficiency
  • 29810 2022-005
    Significant Deficiency
  • 606247 2022-003
    Significant Deficiency Repeat
  • 606248 2022-004
    Significant Deficiency
  • 606249 2022-005
    Significant Deficiency
  • 606250 2022-003
    Significant Deficiency Repeat
  • 606251 2022-004
    Significant Deficiency
  • 606252 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $350,668
81.042 Weatherization Assistance for Low-Income Persons $291,806
93.569 Community Services Block Grant $157,966
64.033 Va Supportive Services for Veteran Families Program $145,563
14.239 Home Investment Partnerships Program $94,987
97.024 Emergency Food and Shelter National Board Program $36,642