Finding 607319 (2022-005)

Material Weakness
Requirement
BGL
Questioned Costs
-
Year
2022
Accepted
2023-06-20

AI Summary

  • Core Issue: The Alliance lacks specific controls in their procedures for managing grant activities, leading to a material weakness in compliance with grant provisions.
  • Impacted Requirements: Key areas needing improvement include grant management oversight, reporting accuracy, financial reconciliation, and eligibility verification for recipients.
  • Recommended Follow-Up: Enhance written procedures to include designated responsibilities, regular reviews, and a clear timeline for financial reporting and compliance checks.

Finding Text

2022-5 Emergency Solutions Grant Program ? Assistance Listing No. 14.231, Grant No. APZ11, Grant Period ? Year Ended June 30, 2022, Covid Grants Material Weakness: Although the Alliance had written procedures for receipt, disbursement, and accounting for grant monies, the procedures do not address specific controls that are needed to provide assurance that grant activities are conducted in accordance with grant provisions. Written procedures should be implemented and/or enhanced to address the grant functions, including: ? Designation of an employee to be responsible for grant management and oversight. ? Grant reporting, including appropriate review and approval. ? Reconciling grant financial reports with supporting accounting records and review and approval by a responsible official before filing. ? A documented time schedule for filing financial reports with grantors and polices for identifying special requirements of grants. ? Recording charges of direct and indirect costs of grants. ? Reviewing charges to grants, including documentation that the expense is allowable to the grant. ? Reviewing and approving that recipients are eligible under program requirements. ? Employee time allocation method to ensure compliance with Uniform Guidance.

Categories

Allowable Costs / Cost Principles Material Weakness Reporting Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.231 Emergency Solutions Grant Program $3.04M
14.267 Continuum of Care Program $330,170
93.558 Temporary Assistance for Needy Families $36,860
14.218 Community Development Block Grants/entitlement Grants $8,304