Finding Text
Finding 2022-001 Significant Deficiency: Reporting - Compliance and Control Finding
ALN 11.307 – Economic Development Cluster
Federal Agency: U.S. Department of Commerce
Pass-Through Entity: N/A - Direct Award
Criteria Or Specific Requirement: The agreement for the federal award requiresseveral reports be submitted, including a Progress Report that is due within 30 days of the report period end.
Condition: The Organization did not submit the required Progress Report by the required due date.
Cause: The Organization’s internal control in place (review of reports by a supervisory employee) failed to ensure that the Progress Report was submitted by the applicable deadline.
Effect: The Progress Report was not submitted by the applicable deadline.
Context: Of the six reports selected for testing, one report was not submitted by the applicable deadline. The report was submitted 7 days after the deadline.
Questioned Costs: None.
Identification As A Repeat Finding: Not applicable.
Recommendation: We recommend that management evaluate their existing internal control for the review of reports, and consider enhancing it to ensure that all reports are submitted by applicable deadlines.
Views Of Responsible Officials: With the subsequent establishment of the dedicated Grants Coordinator position, improved controls came into place: 1) dual supervisory review of reports between the direct supervisor of the Grants Coordinator position and the legacy supervisory role of the Senior Vice President Programs; 2) a clearer timeline of reporting was established with project management systems and document repositories with additional reminders in place to ensure adequate notice is provided to individuals responsible for providing information; and 3) there is a structured follow-up process, at periodic intervals, for report review to ensure deadlines are met.