Finding Text
Identification of the federal program: 93.568 - Low-Income Home Energy Assistance Program
Compliance finding over reporting and significant deficiency in internal controls related to reporting
Criteria:
In accordance with the grant agreement between El Programa Hispano Catolico and Multnomah County, the Organization is to submit monthly expenditure reports by the 20th calendar day of the month following the month in which the expenditures were incurred. In addition, the Organization is to submit semi-annual internal financial statements within 30 days of December 31 st and June 30th.
Condition:
The Organization did not submit 2 of the required 12 monthly financial reports or semi-annual internal financial statements timely to Multnomah County.
Cause:
Internal control processes and procedures were not in place to ensure required reports were filed timely.
Effect:
Multnomah County relies on reports to monitor the activities of the Organization, and without these reports, Multnomah County cannot provide sufficient oversight of grant activities.
Questioned Costs:
None
Recommendations:
We recommend the Organization develop internal control processes and procedures to ensure reports are filed
timely.
Views of responsible officials:
We agree with the need for internal control processes and procedures to ensure the financial reports are submitted on time. During the audited period, EPHC experienced staff turnover and vacancies. During this time there were limited accounting staff making timely monthly close challenging which caused delays in financial reporting. Beginning in fiscal year 2025, finance team members are following these processes on a consistent basis.