Finding 395502 (2023-018)

U.S. DEPARTMENT OF COMMERCE: 2023-018 Compliance with Reporting Fiscal year finding initially occurred: 2023 Economic Adjustment Assistance (11.307) See Compliance Finding 2023-017. 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.