Finding 567990 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-27

AI Summary

  • Core Issue: The Alliance lacks proper supervisory review and approval for grant reporting.
  • Impacted Requirements: Internal controls must include timely and documented supervisory reviews to ensure compliance.
  • Recommended Follow-Up: Implement written documentation of supervisory approval for all future grant reports before submission.

Finding Text

Condition: The Alliance does not have appropriate supervisory review and approval procedures related to the grant reporting function. Criteria: Effective internal control over compliance includes appropriate, timely, and documented supervisory review and approval procedures. Cause: The grant reporting is prepared and submitted without documented supervisory review and approval. Effect: The Alliance is at an increased risk for grant reporting errors or omissions without timely supervisory review and approval. Questioned Costs: N/A Recommendation: We recommend the review and approval of all future grant reports prior to their submission. The approval should be documented in writing. Views of Responsible Officials: We acknowledge the audit finding with respect to lack of documented supervisory review and approval of grant report submission. Grant reports were reviewed prior to filing with approval communicated either via email or verbally. We will document approval in writing in the future.

Corrective Action Plan

Description of Finding: The audit team noted insufficient supervisory review and approval procedures related to the grant reporting function, specifically, a lack of documented supervisory review and approval prior to submission of grant reports which increases the risk of grant reporting errors or omissions. As previously noted, 2024 was a year of transition with respect to executive leadership of the Charleston Area Alliance. Grant reporting previously handled at the executive level was delegated to experienced financial and program leaders within the organization who prepared grant reports collaboratively and reviewed reports prior to their submission. We acknowledge that approval of reports may not have been documented in writing other than in emails, and that reports were at times approved verbally prior to submission. Corrective Action: We will maintain written documentation of review and approval of future grant reports prior to submission. Contact Persons: Debra S. James, CPA, Chief Financial Officer 304-340-4253 djames@charlestonareaalliance.org Mara C. Boggs, Chief Executive Officer 304-340-4253 mboggs@charlestonareaalliance.org Anticipated Completion Date: July 1, 2025

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 567991 2024-002
    Significant Deficiency
  • 567992 2024-002
    Significant Deficiency
  • 567993 2024-003
    -
  • 1144432 2024-002
    Significant Deficiency
  • 1144433 2024-002
    Significant Deficiency
  • 1144434 2024-002
    Significant Deficiency
  • 1144435 2024-003
    -

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $57,863
11.307 Economic Adjustment Assistance $46,812
23.002 Appalachian Area Development $42,294