Finding 560522 (2024-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-05-15
Audit: 356420
Organization: Aclamo (PA)

AI Summary

  • Core Issue: The organization failed to keep copies of quarterly reports submitted to Montgomery County, violating the subrecipient agreement.
  • Impacted Requirements: Internal controls for document retention were inadequate, leading to a lack of evidence for timely and accurate report submissions.
  • Recommended Follow-Up: Implement procedures to maintain copies of reports and proof of submission, including a tracking system and staff training on document retention.

Finding Text

2024-003: Reporting Program: Coronavirus State and Local Fiscal Recovery Funds CFDA No.: 21.027 Federal Grantor: U.S. Department of the Treasury Passed-through: Montgomery County Grant No.: MPRF-22-435, ACLAMO Expansion ARPA Grant Type of Finding: Significant Deficiency in Internal Control Condition: The organization did not retain copies of the quarterly reports filed with the county or confirmation of the submission. Criteria: Under the subrecipient agreement, the organization was required to submit quarterly reports to Montgomery County by the 15th of the following month. Internal controls should be in place over retention of supporting documentation to verify reports were filed accurately and timely. Cause: Internal controls over document retention for filed reports are inadequately designed and copies of reports or proof of submission were not maintained. Effect: Because copies of reports or proof of submission were not maintained, there is no supporting documentation to show that the reports were filed accurately or timely. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A sample of 4 quarterly reports was selected for testing of Reporting. Repeat Finding from Prior Year: No. Recommendation: The organization should develop procedures to ensure that copies of filed reports or proof of submission are maintained. Views of Responsible Officials and Planned Corrective Action: We agree with the auditors’ comments, and the following action will be taken to improve the situation. The Interim Executive Director will assume responsibility for submitting all required quarterly reports related to ARPA funding. Following report submission, we will request confirmation of receipt and a copy of the submitted report, which will be stored on the Financial Team SharePoint site. ACLAMO will also implement a formal tracking system to document submission dates, confirmation receipts, and responsible staff members. Relevant team members will receive training on proper document retention procedures.

Corrective Action Plan

Reporting – reports submitted to the county for the ARPA contract were not retained, effective internal controls were not in place to ensure proper document retention. ACLAMO acknowledges and agrees with Finding 2024-003 regarding the lack of effective internal controls to ensure the retention of reports submitted to the County under the ARPA contract. To address this issue, the Interim Executive Director, in coordination with the Financial Team, has taken the following corrective actions: Quarterly Report Oversight: The Interim Executive Director will assume responsibility for submitting all required quarterly reports related to ARPA funding. This ensures a single point of accountability for timely and accurate reporting. Document Retention and Audit Readiness: Immediately following each report submission, ACLAMO will request confirmation of receipt and a copy of the submitted report from the County. These documents will be promptly uploaded and stored in ACLAMO’s Financial Team SharePoint Site to ensure secure access and proper audit documentation. Internal Control Enhancements: ACLAMO will also implement a formal tracking system (such as a report log) to document submission dates, confirmation receipts, and responsible staff members. This log will be reviewed quarterly by the Financial Team to ensure completeness and compliance. Staff Training: Relevant team members will receive training on proper document retention procedures, the importance of audit trails, and use of the SharePoint system to reinforce accountability and sustainability of this corrective action. ACLAMO is committed to improving its reporting systems and internal controls to ensure compliance with all federal and contractual requirements and to promote transparency and accountability.

Categories

Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 560521 2024-002
    Significant Deficiency
  • 1136963 2024-002
    Significant Deficiency
  • 1136964 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.32M
21.023 Emergency Rental Assistance Program $867,629
93.558 Temporary Assistance for Needy Families $260,008
17.225 Unemployment Insurance $179,879
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $112,500
97.088 Disaster Assistance Projects $71,224
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $67,416
93.268 Immunization Cooperative Agreements $21,442
93.568 Low-Income Home Energy Assistance $6,612
81.042 Weatherization Assistance for Low-Income Persons $4,732