Finding Text
2022-003 Improve Compliance with and Controls Over Reporting
Federal Program(s) Information
Federal Agency: U.S. Department of Homeland Security
Cluster/Program: Assistance to Firefighters Grant
AL Number(s): 97.044
Award Year: 2022
Compliance Requirement: Reporting
Type of Finding
Compliance
Internal Control over Compliance – Significant Deficiency
Criteria or Specific Requirement
Grantees are required to file semi-annual Federal Financial Reports to report expenditures under Federal Awards and cash status. Grantees are also required to file Performance reports at least annually highlighting key grant information and use of funds.
Condition and Context
A sample of reports required to be submitted were selected for testing of compliance. Each report selected was not submitted to the appropriate party in a timely manner.
Cause
Weakness in the design and operation of internal controls.
Effect or Potential Effect
Due to the weaknesses in internal controls noted above, the Town is not in compliance with grant requirements, and there is risk that funds may be withheld for the Town’s currently active grants as a result. No questioned costs are reported, as they are not quantifiable.
Recommendation
The Town should address the weaknesses in internal controls noted above in order to comply with reporting guidelines.
Views of Responsible Official
Management agrees with the finding.
Planned Corrective Action
Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.