Finding Text
Federal Program: Assistance Listing Number: 23.002
Federal Program: Appalachian Area Development
Federal Agency: Appalachian Regional Commission
Federal Award Identification Number: ARC21C20233
Pass-Through Entity: Alabama Department of Economic and Community Affairs
Criteria: Management is responsible for monitoring compliance with grant provisions, laws and regulations. The Authority engaged a grant administration specialist to monitor compliance with provisions of the grant award and to assist in completing grant reimbursement requests. Condition Found: Record Retention and Filing System: During tests of compliance over federal awards, the grant administration specialist was unable to timely provide selected documents, DOL Wage & Hour Reports, for subcontractor labor charged to the construction contract requested for compliance testing. Cause: The grant administration specialist did not have ready access to some of the subcontractor wage and hour reports we requested for testing compliance. Potential Effect: Failure to retain supporting records, along with a systematic method for accessing records, that document compliance with grant provisions related to expenditures subject to federal wage and labor laws, could result in the granting agency rejecting cost reimbursement requests or potential loss of the federal award. Questioned cost: $0. Context: Wage and hour reports selected for compliance testing were eventually provided for review. Recommendation: We recommend management conduct a detailed review of grant expenditure records to assure compliance with all provisions of the grant agreement. Views of Management: Management recognizes the importance of record retention and filing systems. When management became aware of the misplaced records related to wage and hour reports, management undertook a detailed review of the compliance requirements in the grant agreement and examined expenditures under the federal award to ensure the entity is in compliance with laws and regulations.