ARPA Community Grant Audit

An audit was conducted to provide a comprehensive assessment of the County Council’s ARPA Community Grant Program.  County Council was identified as an area to audit due the high level of public interest in the community grants, which elevated its risk rating during the annual risk assessment process. The objectives of this audit were to ensure compliance with funds awarded to recipients through County Council’s ARPA Community Grant program and assess project performance and community impact.    

The Department of Internal Audit (DIA) conducted our review through inquiry and testing of grant expenditures, as well as a review and evaluation of procedures, practices, and controls as deemed necessary.

The County Council ARPA Community Grant Program was generally well managed. However, DIA identified instances of  non-compliance with grant agreements, internal control weaknesses, and opportunities for process improvement in the following areas: 

• Two projects were completed, but not all grant funds were expended by the recipient, totaling $48,100.

• Two instances where grant funds may not have been used in accordance with the terms of the grant agreements, totaling $31,882. 

• Noncompliance with annual or project completion reporting requirements outlined in the grant agreements. 

• Absence of formal policies and procedures to guide the administration of the grant program. 
   

DIA provided County Council staff with recommendations to strengthen controls over the ARPA Community Grant Program, as well as similar programs that may be implemented in the future. County Council staff began working to resolve issues identified in this
report during the audit. The recommendations to County Council and staff included, but were not limited to: 

• Consistently requesting and reviewing detailed supporting documentation from award recipients. 

• Evaluating identified exceptions and determining appropriate corrective actions.  

• Following up with award recipients annually to obtain required annual or project completion reports, as outlined in grant
  agreements. 

• Ensuring that, should a similar program be implemented in the future, adequate resources are allocated for effective monitoring,
  and formal written policies and procedures are developed and implemented.