Finding 518291 (2022-001)

Finding 2022-001 – Internal Controls over Grant Management (Significant Deficiency and Noncompliance) Information on the federal program: U.S. Economic Development Administration Economic Development Cluster and U.S. Department of Health and Human Services FAL No 93.568 Low- Income Home Energy Assistance. Criteria: 2 CFR 200.302 establishes the requirements of a financial management system adequate to ensure compliance with federal regulations. This system must include written procedures to implement requirements for payment methods and determine the allowability of costs in accordance with subpart E. Condition: Central Alabama Regional Planning and Development Commission does not have a written grant manual or other written accounting procedures that meet the financial management system requirements established in the regulations. Cause: Central Alabama Regional Planning and Development Commission has processes and procedures in place to administer grant funds but no written policies. Effect: Central Alabama Regional Planning and Development Commission is not in compliance with financial management system requirements. Recommendation: Central Alabama Regional Planning and Development Commission should develop a grants manual or additional written policies to incorporate all the requirements of 2 CFR 200 and ensure compliance. Views of Responsible Officials: See Corrective Action Plan included at the end of the report.