Finding 573039 (2024-001)

Subrecipient Monitoring – Material Weakness Federal Program: AL 11.307 – Economic Adjustment Assistance Criteria: A good system of internal controls allows for the compliance with Uniform Guidance to monitor funds that are passed through to subrecipients and the continued stewardship of those federal dollars. Condition: For the four-month period from September 1, 2024 through December 31, 2024, we discussed the policies and procedures in effect for the Chamber Foundation employees to adequately monitor the subrecipients under the Economic Adjustment Assistance Grant. Although the policies and procedures in effect during the four-month period from September 1, 2024 through December 31, 2024 were appropriately designed, they were not completed throughout the year. Cause: There was a general misunderstanding on the process of completing subrecipient monitoring controls throughout the year. Effect: Noncompliance will not be prevented, or detected and corrected in a timely manner. Questioned costs: None Recommendation: The subrecipient monitoring policies and procedures should be updated to include specific milestones and broken down into specific tasks that are to be achieved throughout the year. Redundancies and cross-training could be included to reduce the risk that lapses in monitoring occur due to staff turnover or extended absences. In addition, training for all staff upon employment and periodically throughout the year over EDA policies and procedures would allow for better clarity and understanding. Views of Responsible Officials: Management recognizes the deficiency and plans to implement the auditor’s recommendations. Indication of Repeat finding: This is a repeat finding of August 31, 2024 - 002 from the prior year.