Finding 571647 (2024-002)

Significant deficiency in internal control over programmatic reporting Criteria: Management is responsible for the design, implementation and maintenance of internal control relevant to the compliance with programmatic reporting requirements of grants. Internal controls over programmatic reporting should ensure all reports are completed accurately, submitted timely and the Organization adheres to enrollment requirements. Condition: Internal controls over programmatic reporting did not function as designed by management. Effect of Condition: Four of the programmatic reports tested were reviewed by the program director, however, were not submitted by the 10-day deadline and one report indicated the minimum enrollment requirements were not met. Cause of Condition: Internal controls over programmatic reporting did not function as designed by management due to significant turnover in the program’s director and supervisory roles during the year. Recommendation: Santa Maria Community Services, Inc. and Subsidiary should implement the necessary internal controls and oversight to ensure programmatic reporting requirements are adhered to in the event of personnel turnover. Management’s Response: See corrective action plan on page 28.