Open Recommendations

Recommendation is not publicly available.

Recommendation is not publicly available.

Revise policies and procedures to strengthen internal controls over the review of expenditures charged to ARC and reported as non‑ARC matching cost share. The revised policy should require a documented review of expenditures for allowability in accordance with the Uniform Guidance prior to reporting, including procedures to ensure unallowable costs are identified, excluded, and not claimed for reimbursement or cost share. Additionally, the policy should clearly define roles and oversight responsibilities to ensure consistent compliance with federal cost principles.

Work with ARC to resolve the questioned cost totaling $19,040 of ARC funded equipment cost.

Revise policies and procedures to reflect the updated process for progress report tracking to ensure the timely submission of progress reports.

Identify alternative methods for calculating the average cost to process Old-Age, Survivors, and Disability Insurance (OASDI) and/or Supplemental Security Income overpayments to ensure consistency across both programs.

Terminate collection activities for the 15 low-dollar overpayments we identified that had not been terminated or collected.

Review the remaining population of 3,733 low-dollar OASDI overpayments and terminate collection activities where appropriate.

Determine the criteria for when the cost of collection is not cost-beneficial and update policy to specify when collection actions should be terminated or suspended.

We recommend the Senior Vice President, Generation Projects and Fleet Services, to update the project management procedure to define rework and provide guidance for documenting and tracking rework.

We recommend LAN implement a process to allocate indirect costs to funding sources with sufficient documentation to allow for third party review.

We recommend LAN update its written policies to comply with LSC requirements and reflect current cost allocation practices.

We recommend LAN establish a review process requiring verification of PTO coding before submission to their Finance Department. Staff should be trained in the correct use of timekeeping codes, and all LAN employees should timely provide the Finance Department with complete timekeeping records, including category codes.

We recommend LAN develop a comprehensive standard operating procedure that outlines the current wage allocation and reconciliation process, including clear guidelines on documenting adjustments or changes to the process, personnel responsibilities, and timelines.

We recommend LAN review and revise system access controls to limit administrative rights to essential personnel, aligning user rights with specific roles. At a minimum, we recommend that LAN designate one individual as primary administrator to ensure that payroll staff cannot modify or approve their own pay.

We recommend LAN implement controls to ensure all disbursements are properly coded in the accounting system with grant codes and are supported by source documentation clearly indicating the funding source.

We recommend LAN implement a process to ensure only allowable expenses are allocated to LSC in accordance with applicable LSC requirements and guidance.

We recommend LAN strengthen controls to ensure invoices are paid timely by routinely reviewing outstanding payables and prioritizing payment of those approaching, or past, their deadline.

We recommend LAN ensure all invoices are clearly marked as “paid” following disbursement.

"We recommend LAN work with their Board to determine whether check request forms should remain a requirement for all disbursements.
• If they are required, ensure all disbursement packages include a completed form.
• If they are no longer required, update the Accounting Manual to establish disbursement procedures that ensure source documentation is modified to prevent duplicate payments."

We recommend LAN ensure all credit card charges are supported by the required documentation, per LAN’s policies and procedures, along with contemporaneous records that clearly state the business purpose and demonstrate compliance with LSC requirements.

We recommend LAN implement controls to ensure that all transactions are assigned a grant code in the accounting system and have supporting documentation that clearly identifies the funding source.

We recommend LAN document and enforce credit card spending limits, ensuring any deviations or temporary increases are approved by the appropriate individual with the reason documented.

We recommend LAN implement controls to ensure that only authorized cardholders can access credit card information. If a non-cardholder must make a purchase, prior written authorization (such as an email or memo) should be required and the transaction documented accordingly.

We recommend LAN update their Accounting Manual to include transaction and account limits and deadlines for submitting supporting documentation, as required by the LSC Financial Guide.