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.