Kanawha Institute for Social Research and Action, Inc.

Criteria and Condition: Eligibility for individuals to participate in and receive benefits from the program should be documented and retained in the individual’s file.Context: Tests of compliance related to eligibility for individuals could not be performed. The grant has closed and client has stated they no longer have access to the software where eligibility was determined. Cause: Controls were not followed to make sure appropriate documentation was completed and retained in participant files. Effect: Benefits received by the participant are considered a questioned cost. Questioned Costs: Question costs can not be determined as no testing was performed. Auditor’s recommendation: We recommend the Organization establish controls going forward that in the event a grant is closed access to necessary audit documentation is maintained until the audit is performed or any longer period required by law.View of Responsible Officials and Planned Corrective Actions: The grant closed during the COVID-19 pandemic while the organization was essentially shutdown. Management has since developed a control procedure to ensure that data that must be preserved is captured, particularly at the end of grant program to be able to accurately report the efficacy of the grant funding.

Section II - Findings - Financial Statement Audit None Section III - Findings and Questioned Costs - Major Federal Program Audit 2019-001 Eligibility for Individuals Criteria and Condition: Eligibility for individuals to participate in and receive benefits from the program should be documented and retained in the individual?s file. Context: Tests of compliance related to eligibility for individuals revealed that some participant files were missing documentation showing participant eligibility. Cause: Controls were not followed to make sure appropriate documentation was completed and retained in participant files. Effect: Benefits received by the participant are considered a questioned cost. Questioned Costs: Known questioned costs total $25.00. Participant without eligibility documentation on file received benefits totaling $25.00. Auditor?s recommendation: We recommend the Organization follow its controls related to participant eligibility. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the auditors? recommendation. Prior to the audit, the Organization terminated the employee who did not follow controls related to participant eligibility.

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