oversight

19-39. Audit of Grant PA-708F-C45 & C46 & C47 Awarded to Southern Alleghenies Planning & Community Development Commission

Published by the Appalachian Regional Commission, Office of Inspector General on 2020-01-21.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

APPALACHIAN REGIONAL COMMISSION
     OFFICE OF INSPECTOR GENERAL
          AUDIT OF GRANT AWARD
 Southern Alleghenies Planning & Community
         Development Commission
Local Development District (LDD) Administration Grant
              Altoona, Pennsylvania




             Final Report Number: 19-39
      Grant Numbers: PA-708F-C45 & C46 & C47
                   September 2019




                    Prepared by:

            Leon Snead & Company, P.C.
                                                   TABLE OF CONTENTS



                                                                                                                                          Page


Background ......................................................................................................................................1

Objective, Scope, and Methodology ................................................................................................1

Summary of Audit Results ...............................................................................................................2
Background

Leon Snead & Company, P.C. completed an audit of grants PA-708F-C45, PA-708F-C46, and
PA-708F-C47 awarded by the Appalachian Regional Commission (ARC) to the Southern
Alleghenies Planning and Community Development Commission (the Commission). The audit
was conducted at the request of the ARC Office of Inspector General to assist the office in its
oversight of ARC grant funds.

The Commission is a nonprofit regional economic and community development organization
serving Bedford, Blair, Cambria, Fulton, Huntingdon, and Somerset counties in the State of
Pennsylvania. It is governed by a board of directors consisting of the county commissioners
from each member county and representatives from the private sector.

ARC grant PA-708F-C45 was awarded to cover the period January 1, 2017 to December 31, 2017
and provided $102,000 in ARC funds and required $102,000 in match. ARC grant PA-708F-C46
was awarded to cover the period January 1, 2018 to December 31, 2018 and provided $101,000
in ARC funds and required $101,000 in match. ARC grant PA-708F-C47 was awarded to cover
the period January 1, 2019 to December 31, 2019 and provides $101,000 in ARC funds and
requires $101.000 in match. Total ARC funding for the three grants was $304,000.
Each grant provides funding assistance for the Commission to establish and expand economic
development services in its service area and support programs that are consistent with the policy
and guidelines for local development districts, including activities and project development
related to ARC's Strategic Plan. All three grants were open at the time of the audit.

Objectives, Scope, and Methodology

The audit objectives were to determine whether: (1) program funds were managed in accordance
with the ARC and Federal grant requirements; (2) grant funds were expended as provided for in
the approved grant budget; (3) internal grant guidelines, including program (internal) controls,
were adequate and operating effectively; (4) accounting and reporting requirements were
implemented in accordance with generally accepted accounting principles (or other applicable
accounting and reporting requirements); and (5) the matching requirements and (6) the
established performance measures were met.

ARC funding of $274,945 in total had been expended under the three grants. The break out of
total funds expended is $102,000 from C45; $97,195 from C46; and $75,750 from C47. We
reviewed $139,353 of these charges to determine whether they were properly supported and
allowable. The total budgeted matching contribution for the grants was $304,000. Actual
matching costs of $529,634 had been charged to the project as June 30, 2019. We reviewed
$178,005 of these charges to determine whether they were properly supported and allowable.

We reviewed documentation provided by the Commission and interviewed personnel to obtain
an overall understanding of the grant activities, the accounting system, and general operating
procedures and controls. We reviewed written policies and administrative procedures to
determine if they complied with federal requirements and were adequate to administer the grant.
We reviewed financial and project performance reports to determine if they were submitted in



Leon Snead & Company, P.C.                     1
accordance with requirements. We evaluated grant results discussed in the project performance
reports to determine if the planned performance goals and objectives were met.

The on-site fieldwork was performed at the Commission's office in Altoona, Pennsylvania during
the period September 2-5, 2019. The audit results were discussed with Commission officials at
the conclusion of the on-site visit.

The primary criteria used in performing the audit were 2 CFR 200, the ARC Code and the grant
agreements. The audit was performed in accordance with the Generally Accepted Government
Auditing Standards.

Summary of Audit Results

The Commission's administrative policies, procedures, and related internal controls were
adequate to manage the funds provided under the ARC grant. The expenditures of $139,353 and
the match of $178,005 tested for the grants were properly supported and allowable. Matching
contributions exceeded the required amount. Financial reports and project performance reports
were submitted to ARC timely and accurately. The Commission had an adequate process in
place for obtaining and recording data related to the overall goals of the grant.

We compared the planned performance outcomes with the actual performance outcomes for the
three grants. As shown below, the Commission met or exceeded the planned performance
outcomes for grants PA-708F-C45 & C46, and the Commission was on track to meet or exceed
the performance outcomes for grant PA-708F-C47.

                      PA-708F-C45                            Planned Outcomes       Actual Reported Outcomes
                                                                4 Applications            6 Applications
 ARC Project Applications to be Completed
                                                             Totaling $2,261,050       Totaling $3,788,375
 Other State and Federal Applications to be Completed         4 to 7 Applications        14 Applications
 Technical Assistance for External Data Requests              25 to 30 Requests            25 Requests
 Technical Assistance for Program Guidance                   6 to 10 Applications        14 Applications
 Businesses Served                                          200 to 250 Businesses         304 Businesses
                     PA-708F-C46
                                                                5 Applications            5 Applications
 ARC Project Applications to be Completed
                                                             Totaling $3,686,375       Totaling $2,973,748
 Other State and Federal Applications to be Completed        3 to 6 Applications         16 Applications
 Technical Assistance for External Data Requests              25 to 30 Requests            25 Requests
 Technical Assistance for Program Guidance                   6 to 10 Applications        16 Applications
 Keystone Opportunity Zone Applications                        10 Applications           15 Applications
 Businesses Served                                          200 to 250 Businesses        241 Businesses
                     PA-708F-C47
                                                        7 Applications Totaling           8 Applications
 ARC Project Applications to be Completed
                                                               $3,239,162              Totaling $2,944,606*
 Other State and Federal Applications to be Completed     3 to 6 Applications             4 Applications
 Technical Assistance for External Data Requests           10 to 15 Requests               14 Requests
 Technical Assistance Program Guidance                    6 to 10 Applications           12 Applications
 Keystone Opportunity Zone Applications                     10 Applications               9 Applications
 Businesses Served                                       200 to 250 Businesses           191 Businesses
*Performance outcomes as of September 2019




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