Finding 395501 (2023-017)

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Requirement
L
Questioned Costs
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Year
2023
Accepted
2024-04-30

AI Summary

  • Core Issue: The Government submitted an inaccurate bi-annual Form SF-425, leading to discrepancies in reported financial information.
  • Impacted Requirements: Internal controls were insufficient to ensure compliance with federal guidelines for accurate and timely reporting.
  • Recommended Follow-Up: Implement stronger internal controls and review processes to ensure financial data aligns with records before submission, with corrective actions expected in 2-4 months.

Finding Text

U.S. DEPARTMENT OF COMMERCE: 2023-017 Compliance with Reporting Fiscal year finding initially occurred: 2023 Economic Adjustment Assistance (11.307) Criteria An effective system of internal controls should be in place to ensure accuracy, completeness and timely submission of the reports required by the grantor. In accordance with the federal grant guidelines, Form SF-425, Federal Financial Report, is required to be submitted on a bi-annual basis, until the end of the period of performance when a final closeout Form SF-425 is submitted. Condition During the current fiscal year, the Government submitted their bi-annual Form SF-425 for the period ending September 30, 2023, with inaccurate financial information. The amounts reported for the federal share of expenditures and the federal share of unliquidated obligations did not agree to the Government’s financial records. Cause The Government’s policies and procedures did not have adequate controls to ensure the amounts reported on Form SF-425 agree to their financial records. Effect The federal grantor was provided with inaccurate financial information for the federal reporting period ending September 30, 2023. Recommendation The Government should establish and maintain effective internal controls to ensure accurate financial information is reported in accordance with the federal guidelines. Views of Responsible Officials and Planned Corrective Action The Government agrees with this finding. LUS Fiber and the Accounting Division will work together to review the forms prepared by the Acadiana Planning Commission prior to submission to ensure all information balances to our general ledger. This project is expected to be completed within two to four months and will be overseen by the Interim Fiber Director Jeffery Stewart.

Corrective Action Plan

U.S. DEPARTMENT OF COMMERCE: Economic Adjustment Assistance (11.307) 2023-017 Compliance with Reporting Recommendation: The Government should establish and maintain effective internal controls to ensure accurate financial information is reported in accordance with the federal guidelines. Corrective Action Plan: The Government agrees with this finding. LUS Fiber and the Accounting Division will work together to review the forms prepared by the Acadiana Planning Commission prior to submission to ensure all information balances to our general ledger. This project is expected to be completed within two to four months and will be overseen by the Interim Fiber Director Jeffery Stewart.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
11.031 Broadband Infrastructure Program $7.29M
21.023 Emergency Rental Assistance Program $5.31M
11.307 Economic Adjustment Assistance $2.09M
20.205 Highway Planning and Construction $1.04M
14.218 Community Development Block Grants/entitlement Grants $961,434
97.029 Flood Mitigation Assistance $757,995
11.035 Broadband Equity Access and Deployment Program $537,841
20.507 Federal Transit_formula Grants $393,949
21.027 Coronavirus State and Local Fiscal Recovery Funds $191,549
20.500 Federal Transit_capital Investment Grants $190,319
16.710 Public Safety Partnership and Community Policing Grants $115,616
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $64,700
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $53,852
16.588 Violence Against Women Formula Grants $25,578
16.609 Project Safe Neighborhoods $20,000
14.239 Home Investment Partnerships Program $6,325
10.927 Emergency Watershed Protection Program - Disaster Relief Appropriations Act $4,521
20.600 State and Community Highway Safety $2,923
16.738 Edward Byrne Memorial Justice Assistance Grant Program $2,303
16.034 Coronavirus Emergency Supplemental Funding Program $1,608
97.039 Hazard Mitigation Grant $975