FAC Explorer

Finding 61314 (2022-005)

Significant Deficiency
Requirement
H
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 54221
Organization: Northwest Hills Council of Governments (CT)
Auditor: King King and Associates CPAS

AI Summary

  • Core Issue: EDA Cares funds of $9,500 were spent after the grant period ended, leading to noncompliance.
  • Impacted Requirements: Funds must be spent within the awarded grant period to meet EDA Cares reporting requirements.
  • Recommended Follow-Up: Implement controls to ensure grant funds are spent within the correct fiscal periods.

Finding Text

2022-005 Grantor: Department of Homeland Security Federal Program Name: EDA- CARES Pass-through Entity: N/A Federal Grant Program CFDA Number: 11.307 Type of Finding: Significant Deficiency in Compliance Criteria or specific requirement: EDA Cares funds must be spent during the awarded grant period. Condition: EDA Cares funds of $9,500 were spent after the grant period had ended. Effect: Noncompliance with EDA Cares reporting requirements. Cause: An experienced and recommended consultant was engaged to administer the grant. The consultant requested an invoice for services to be rendered after the end of the grant period. The Council contacted EDA for guidance, and the funds were returned to the Council as directed by EDA. Repeat Finding: No Recommendation: We recommend that the client implement controls to ensure grant funds are spent in the correct fiscal periods. Management?s Response/Views of Responsible Officials: NHCOG acknowledged the error and performed the necessary corrections promptly as soon as it was discovered.

Corrective Action Plan

AUDIT FINDINGS Finding Reference Number: 2022-01 Description of Finding: During audit testing several instances of unrecorded receivables, liabilities, and deferred revenues were discovered. Statement of Concurrence or Nonconcurrence: The Agency agrees with this finding. Corrective Action: NHCOG has made arrangements to retain an outside accounting professional to verify the proper internal controls are being implemented before this Fiscal Year end and is considering adding staff with an accounting background as part of the long-term plan. Name of Contact Person: Robert Phillips, Executive Director Projected Completion Date: June 30, 2023 Finding Reference Number: 2022-02 Description of Finding: Weakened internal controls over grant reporting resulted in delays in the billing for the transit planning and RITS programs. Statement of Concurrence or Nonconcurrence: The Agency agrees with this finding. Corrective Action: NHCOG acknowledges that there were delays due to staff turnover at the agency as well as at the state funding source and with certain RITS service providers. It is anticipated that these processes will improve with time and full staffing levels at each agency. Name of Contact Person: Robert Phillips, Executive Director Projected Completion Date: June 30, 2023 Finding Reference Number: 2022-03 Description of Finding: Form DE-2017 was not submitted within 90 days of the fiscal year-end. Statement of Concurrence or Nonconcurrence: The Agency agrees with this finding. Corrective Action: Form OPM-DE-2017 will be submitted moving forward. New staff was unaware of the filing requirement. Name of Contact Person: Robert Phillips, Executive Director Projected Completion Date: June 30, 2023 Finding Reference Number: 2022-04 Description of Finding: Grant contract for the period October 1, 2021 through June 30, 2022 could not be located. Statement of Concurrence or Nonconcurrence: The Agency agrees with this finding. Corrective Action: NHCOG will work with the state to be sure that all contracts are available for review at both entities. Name of Contact Person: Robert Phillips, Executive Director Projected Completion Date: June 30, 2023 Finding Reference Number: 2022-05 Description of Finding: EDA Cares funds of $9,500 were spent after the grant period had ended. Statement of Concurrence or Nonconcurrence: The Agency agrees with this finding. Corrective Action: NHCOG acknowledged the error and performed the necessary corrections promptly as soon as it was discovered. Name of Contact Person: Robert Phillips, Executive Director Projected Completion Date: June 30, 2023 There are no questioned costs. If the office of Policy and Management has questions regarding this Plan, please call myself at 860-491-9884 x104. Sincerely yours, Robert Phillips Executive Director

Categories

Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 637756 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.067 Homeland Security Grant Program $461,734
11.307 Economic Adjustment Assistance $202,076
20.521 New Freedom Program $117,507
20.205 Highway Planning and Construction $101,852
11.300 Investments for Public Works and Economic Development Facilities $60,000
97.042 Emergency Management Performance Grants $16,258