Finding Text
Fiscal year finding initially occurred: 2022
CDBG – Entitlement Grants Cluster (14.218)
B-20-MW-22-0002
CRITERIA: Internal controls should be in place to ensure accuracy, completeness and timely submission of the reports required by the grantor.
CONDITION: Monthly and quarterly progress reports as well as monthly requests for reimbursement are a requirement of the grant. The Organization was unable to provide documentation that any monthly or quarterly accomplishments and progress reports were submitted to the grantor for the year under audit. The requests for reimbursement were filed, however; they were not filed on a monthly basis as stipulated in the grant agreement. The first request covered 10 months, the second request covered 6 months and the third and fourth requests were for the same one-month period.
CAUSE: Internal controls were not in place to ensure accuracy, completeness and timely submission of the reports required by the grantor.
EFFECT: The Organization was not able to provide documentation to demonstrate compliance with reporting.
RECOMMENDATION: The Organization should establish and maintain effective internal controls to ensure compliance with the requirements of grant award agreements relative to submitting monthly and quarterly progress reports as well as monthly requests for reimbursement.
MANAGEMENT’S CORRECTION ACTION PLAN: As stated in the condition above the reports were all filed but not in accordance with the required timeframes. Management will work to ensure that reports are filed as required by the grant even when no activity for the related period occurs.