Finding Text
Condition: An effective internal control system was not in place to ensure compliance with requirements related to the grant agreement and the Reporting compliance requirements.
Criteria: 2 CFR section 200.303 states in part: "The Non-Federal entity must: Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)."
Cause: CICOA's management did not maintain a system of internal controls to ensure compliance with the compliance requirements listed above.
Effect: Several required reports were not submitted timely to the Indiana Family and Social Services Administration in accordance with its grant awards. The following reports were identified as not being completed and submitted timely: The expenditure data is to be entered within 75 days of the quarter. From a sample size of four, the December 31, 2023, and the June 30, 2024, reports were not fully completed and submitted within the 75-day requirement. The non-federal expenditures report is to be submitted within 15 days after the end of the quarter. None of the quarterly reports were filed until November 19, 2024.
Recommendation: We recommend that CICOA establish controls to ensure proper monitoring exists to ensure all reporting requirements for the grants are prepared and submitted timely.
Views of Responsible Officials and Planned Corrective Actions: Management recognizes its compliance requirements for maintaining and implementing sound controls over financial reporting and the potential non-compliance impacts of a lack of such control environment. Steps have been taken and implemented on January 1, 2025 to ensure adequate oversight and review takes place. All reporting requirements and due dates are currently being submitted timely.