FAC Explorer

Finding 571312 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-07-15
Audit: 362261
Organization: North Central Alabama Regional Council of Local Governments (AL)
Auditor: Wear Howell Strickalnd Quinn & Law LLC

AI Summary

  • Core Issue: The financial report for revolving loan funds and grants was submitted late due to leadership transition in the Finance Department.
  • Impacted Requirements: Timely submission of reports to the federal agency is mandatory, with a deadline of 90 days post-reporting period.
  • Recommended Follow-Up: Implement procedures to ensure compliance with reporting deadlines and facilitate smooth transitions in leadership.

Finding Text

U.S. Economic Development Administration ALN# 11.307 Significant Deficiency: 2022-001 Reporting Criteria: the Organization is required to submit certain reports to the appropriate federal agency for revolving loan funds and grants. Condition: The financial report was due 90 days after the end of the reporting period. The report was not filed in a timely manner. Effect: The report was filed late. Cause: The Organization was in the middle of a transition of leadership in the Finance Department. The new Finance Director had to be set up as an authorized representative before submitting reports. Recommendation: The organization should ensure that procedures are put in place to meet reporting requirements. Views of responsible officials and planned corrective actions: NARCOG agrees with the finding and will adhere to the corrective action plan on page 61 of the financial report.

Corrective Action Plan

FINDINGS- FINANCIAL STATEMENT AUDIT SIGNFICANT DEFICIENCY Finding 2022-001 - Reporting : The U.S. Economic Development Administration ALN # 11 .307 require reports to the appropriate federal agency for revolving loan funds and grants. Response to Audit Finding 2022-001 : Background: In March of 2022 , NARCOG had a transition of leadership in the Finance Department. The new Finance Director had to be set up as an authorized representative for the organization before reporting could be submitted, which caused a delay in reporting in a timely manner. The Finance Director is still learning the process and requirements of the financial data for the reporting. Conclusion: Going forward NARCOG will have a three-member team to ensure that reporting is submitted in a timely manner. The Finance Director, Executive Director, and Planning Director will all have the capability of completing and submitting reports.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 571313 2022-001
    Significant Deficiency Repeat
  • 571314 2022-001
    Significant Deficiency Repeat
  • 1147754 2022-001
    Significant Deficiency Repeat
  • 1147755 2022-001
    Significant Deficiency Repeat
  • 1147756 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $963,802
10.769 Rural Business Enterprise Grants $576,203
20.507 Federal Transit Formula Grants $504,501
10.767 Intermediary Relending Program $298,329
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $213,783
93.052 National Family Caregiver Support, Title Iii, Part E $155,383
11.302 Economic Development Support for Planning Organizations $82,734
17.235 Senior Community Service Employment Program $58,804
20.509 Formula Grants for Rural Areas and Tribal Transit Program $52,500
23.009 Appalachian Local Development District Assistance $41,434
93.324 State Health Insurance Assistance Program $26,483
11.307 Economic Adjustment Assistance $20,603
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $17,444
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $16,426
97.039 Hazard Mitigation Grant $9,800
93.791 Money Follows the Person Rebalancing Demonstration $8,706
93.071 Medicare Enrollment Assistance Program $7,547
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $5,912
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $2,044