Finding 501096 (2023-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: The SEFA had missing assistance listing numbers and incorrect classifications of ICAST's role.
  • Impacted Requirements: Compliance with accurate reporting for subrecipients and timely reconciliation of expenditures.
  • Recommended Follow-Up: Review and correct the SEFA entries, ensuring proper classification and timely reconciliation moving forward.

Finding Text

The SEFA prepared did not include assistance listing numbers for each program; grants provided to ICAST as a vendor and not a subrecipient were incorrectly included on the SEFA, and the SEFA was missing two programs where the grantor treated ICAST as a subrecipient. Accrual estimates were used for the expenditures that were not reconciled until eight months after year-end.

Corrective Action Plan

The 2023 SEFA was based on the 2022 audited SEFA schedule, updating it for the new 2023 federal programs. Since most of ICAST contracts are with state government agencies, in some instances it is not clear or apparent to ICAST staff, whether the source of funds are Federal for those state contracts. The initial SEFA submission was identified as preliminary and was subsequently updated as ICAST learned more about the source of the state funds. The accrual figures were subject to ongoing deliberations with the state and federal agencies that led to delays in addressing the final reconciliation. ICAST is experiencing delays as long as six months for approval and payment of its invoices by both the state and the federal agencies monitoring its program funds. ICAST has addressed this finding in the following manner: 1. Management and staff will be taking refresher training on the Uniform Guidance requirements. New staff will be trained on it. 2. ICAST has begun to clarify upfront the source of funds for all contracts with its funders. Also ICAST is consolidating all contracts into a central location, with clear indication of the source of funds, to ensure complete and accurate records are available to management and staff when assessing programs for inclusion/exclusion on the SEFA. 3. ICAST continues to hire and train additional financial/accounting staff and management to ensure financial records are reviewed every month and items are followed up and resolved in a timely manner. 4. ICAST is reorganizing its accounting recordkeeping process, to ensure program information is more transparent and readily available.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 501097 2023-001
    Material Weakness
  • 501098 2023-001
    Material Weakness
  • 501099 2023-001
    Material Weakness
  • 501100 2023-001
    Material Weakness
  • 501101 2023-001
    Material Weakness
  • 501102 2023-001
    Material Weakness
  • 501103 2023-001
    Material Weakness
  • 501104 2023-001
    Material Weakness
  • 501105 2023-001
    Material Weakness
  • 501106 2023-001
    Material Weakness
  • 501107 2023-001
    Material Weakness
  • 501108 2023-001
    Material Weakness
  • 501109 2023-001
    Material Weakness
  • 501110 2023-001
    Material Weakness
  • 501111 2023-001
    Material Weakness
  • 501112 2023-001
    Material Weakness
  • 501113 2023-001
    Material Weakness
  • 501114 2023-001
    Material Weakness
  • 1077538 2023-001
    Material Weakness
  • 1077539 2023-001
    Material Weakness
  • 1077540 2023-001
    Material Weakness
  • 1077541 2023-001
    Material Weakness
  • 1077542 2023-001
    Material Weakness
  • 1077543 2023-001
    Material Weakness
  • 1077544 2023-001
    Material Weakness
  • 1077545 2023-001
    Material Weakness
  • 1077546 2023-001
    Material Weakness
  • 1077547 2023-001
    Material Weakness
  • 1077548 2023-001
    Material Weakness
  • 1077549 2023-001
    Material Weakness
  • 1077550 2023-001
    Material Weakness
  • 1077551 2023-001
    Material Weakness
  • 1077552 2023-001
    Material Weakness
  • 1077553 2023-001
    Material Weakness
  • 1077554 2023-001
    Material Weakness
  • 1077555 2023-001
    Material Weakness
  • 1077556 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
81.042 Weatherization Assistance for Low-Income Persons $2.53M
21.027 Coronavirus State and Local Fiscal Recovery Funds $953,658
93.568 Low-Income Home Energy Assistance $753,019
14.913 Healthy Homes Production Program $453,474
14.218 Community Development Block Grants/entitlement Grants $300,000
81.086 Conservation Research and Development $236,998
14.901 Healthy Homes Weatherization Cooperation Demonstration Grants $148,391
66.951 Environmental Education Grants Program $40,751
66.963 Healthy Environmental Living Program (help) $27,326
81.087 Renewable Energy Research and Development $25,671
66.717 Source Reduction Assistance $17,338