Full text
Semiannual Report to Congress
April 1, 2025 – September 30, 2025
www.arc.gov
1666 CONNECTICUT AVENUE, NW, SUITE 700
WASHINGTON, DC 20009-1068
PH. 202 884 7700
Office of the
Federal Co-Chair
November 5, 2025
This letter transmits the Appalachian Regional Commission's Inspector General's
Semiannual Report to Congress for the period April 1, 2025 through September 30, 2025. As
required by Section 405(c) of the Inspector General Act of 1978, as amended, we are also
submitting statistical tables as an attachment to this letter.
The Commission appreciates the Inspector General's efforts to ensure the effectiveness,
efficiency, and integrity of our operations.
If you or your staff have any questions about this report, please contact me at (202) 884-
7681 or Inspector General Clayton Fox at (202) 884-7675.
Sincerely,
Gayle C. Manchin
Federal Co-Chair
October 30, 2025
Commissioners:
Attached is the Semiannual Report summarizing the activities of the Office of Inspector General for the
period of April 1, 2025 to September 30, 2025.
During this reporting period our office issued 23 reports and made 35 recommendations.
I want to assure you that my staff and I are committed to a Commission that operates with efficiency,
effectiveness, and integrity. We look forward to continuing to work with you, the Commission staff,
and Congress to provide independent and effective oversight of the Appalachian Regional
Commission’s programs and operations.
I would like to thank you for your commitment to strengthening the integrity of the Commission’s
operations and for your support of the Office of Inspector General.
Clayton Fox
Inspector General
Appalachian Regional Commission
Inspector General Semiannual Report
i
Report Period: April 1, 2025 to September 30, 2025
TABLE OF CONTENTS
Office of Inspector General .............................................................................................. 1
Semiannual Report ........................................................................................................... 1
Inspector General Reports Issued During This Period ................................................. 1
Summary of Prior Period Reports .................................................................................. 2
Management Decisions Made for Recommendations Issued in Prior Periods .................2
Unimplemented Recommendations From Prior Periods and Potential Cost Savings ......2
Description of Significant Problems, Abuses, or Deficiencies....................................... 2
Hotline and Investigations ................................................................................................ 3
Investigations and Inquiries: Overview ............................................................................3
OIG Hotline Contacts .......................................................................................................3
Investigations Closed During the Reporting Period .........................................................3
Summary of Matters Referred to Prosecuting Authorities ...............................................3
Investigations with Substantiated Allegations Involving Senior Government Employees
...........................................................................................................................................4
Summary of Reports Not Disclosed to the Public .......................................................... 4
Audits and Other Reports to Management........................................................................4
Investigations ....................................................................................................................4
External Oversight Reviews ............................................................................................. 4
Assistance to or From Other Offices of Inspector General........................................... 4
Congressional Activities ................................................................................................... 5
Council of the Inspectors General on Integrity and Efficiency .................................... 5
Federal Financial Management Improvement Act Reporting ..................................... 5
Peer Reviews ...................................................................................................................... 5
Appalachian Regional Commission
Inspector General Semiannual Report
ii
Report Period: April 1, 2025 to September 30, 2025
Appendix A: Inspector General’s Tables
Table 1: Reporting Requirements Index .................................................................... A-1
Table 2: Inspector General Reports Issued During this Reporting Period.................. A-2
Table 3: Management Decisions Made for Recommendations from Prior Periods ... A-3
Table 4: Recommendations with Questioned Costs and Final Action Completed ..... A-4
Table 5: Recommendations Without Final Action –
Audit Reports Issued This Period ................................................................. A-5
Table 6: Recommendations Without Final Action –
Audit Reports Issued in Prior Periods ........................................................... A-7
Table 7: Status of Audit Reports Issued with Final Action Completed ...................... A-9
Table 8: Status of Audit Reports Issued Without Final Action ................................ A-10
Table 9: Statistical Table of Investigative Reports .................................................. A-11
Appendix B: Commissioner’s Statistical Tables
Table A: Management Decisions Made for Recommendations from Prior Periods ..B-1
Table B: Recommendations with Final Action Completed
During this Reporting Period ........................................................................B-1
Table C: Status of Reports with Questioned Costs ......................................................B-2
Table D: Prior Year Management Decisions Without Final Action ............................B-3
Appalachian Regional Commission
Inspector General Semiannual Report
1
Report Period: April 1, 2025 to September 30, 2025
Office of Inspector General
The Appalachian Regional Commission (Commission) established the Office of
Inspector General when the Inspector General Act (IG Act) was amended in 1988. Our
office provides audit, evaluation, inspection, and investigative services covering all
Commission programs and operations. Our mission is to promote and preserve the
effectiveness, efficiency, and integrity of the Commission. We plan and conduct our
activities based on several factors: requirements of laws and regulations, requests from
management officials, allegations received from Commission personnel and other
sources, and the Inspector General’s initiative.
Semiannual Report
The IG Act requires each Inspector General to prepare a report twice a year that
summarizes the activities of the office. This Semiannual Report covers the period from
April 1, 2025, through September 30, 2025. The 17 reporting requirements specified in
the IG Act are shown in Appendix A, Table 1 and must be included in the report.
Inspector General Reports Issued During This Period
The Inspector General issued 23 reports during this reporting period. 22 of the reports
issued were audits of grant awards. The grant audits were designed to determine whether
the grantee had sound management practices in place to administer the financial and
performance aspects of the award. The Inspector General also issued one investigative
report during this reporting period. A complete list of reports issued during this reporting
period is provided in Appendix A, Table 2.
Appalachian Regional Commission
Inspector General Semiannual Report
2
Report Period: April 1, 2025 to September 30, 2025
Summary of Prior Period Reports
Management Decisions Made for Recommendations Issued in Prior Periods
At the beginning of this reporting period, the Commission had provided management
decisions for all final reports we issued in prior periods. Summary information related to
the management decisions received is provided in Appendix A, Table 3.
Unimplemented Recommendations From Prior Periods and Potential Cost Savings
At the beginning of this reporting period, the Commission had 38 recommendations from
thirteen previous reports without final action. Twenty-three recommendations from eight
of those reports are still awaiting final action.
A complete list of unimplemented recommendations from prior periods, including any
potential cost savings, is provided in Appendix A, Table 6.
Description of Significant Problems, Abuses, or Deficiencies
The Inspector General has the discretion to determine if the results of an audit,
inspection, evaluation, or other report are significant to the administration and operations
of the Commission. In making this determination, the Inspector General considers
quantitative and qualitative factors, such as the nature of the problem or deficiency,
potential monetary impacts, and materiality as it relates to the integrity of the
Commission’s programs and operations.
The Inspector General did not identify any problems, abuses, or deficiencies that rose to
this level of significance during this reporting period.
Appalachian Regional Commission
Inspector General Semiannual Report
3
Report Period: April 1, 2025 to September 30, 2025
Hotline and Investigations
Investigations and Inquiries: Overview
One of our functions is to conduct investigations and inquiries of criminal, civil, and
administrative wrongdoing involving Commission programs, operations, and personnel.
We may investigate possible violations of criminal law, of regulations on employee
responsibilities and conduct, and of other statutes and regulations covering Commission
activities.
Our office reviews and analyzes each complaint received to decide the appropriate course
of action and, if appropriate, conducts a preliminary inquiry. If the information we find
during the preliminary inquiry indicates that a full investigation is appropriate, we will
launch an investigation.
OIG Hotline Contacts
Our office maintains a hotline for reporting information about suspected waste, fraud,
abuse, or mismanagement involving Commission programs or operations. The
information may come to us in person; by telephone, fax, email, or mail; or through a
web-based form. When requested, we will endeavor to keep a provider’s identity
confidential. Complaints may also be made anonymously.
We receive complaints from employees, contractors, grantees, and the public that involve
the Commission’s areas of responsibility. We examine these complaints to determine
whether there is any indication of wrongdoing or misconduct by grantees or the
Commission. If the complaint does not relate to the Commission or its grantees, we refer
the complaint to the appropriate entity for action. If the complaint does not have merit,
we close the matter.
Investigations Closed During the Reporting Period
The Office of Inspector General closed one investigation during this reporting period.
Summary of Matters Referred to Prosecuting Authorities
The Office of Inspector General did not refer any matters to prosecuting authorities
during this reporting period.
Appalachian Regional Commission
Inspector General Semiannual Report
4
Report Period: April 1, 2025 to September 30, 2025
Investigations with Substantiated Allegations Involving Senior Government
Employees
The Office of Inspector General did not issue any investigative reports that substantiated
allegations involving senior government employees.
Summary of Reports Not Disclosed to the Public
Audits and Other Reports to Management
The Office of Inspector General did not issue any inspections, evaluations, or audits that
were not disclosed to the public during this reporting period.
Investigations
The Office of Inspector General did not issue any investigative reports that were not
disclosed to the public during this reporting period.
External Oversight Reviews
The Commission’s administrative operations and programs are reviewed, from time-to-
time, by Federal oversight entities external to the Commission, such as the Government
Accountability Office and Office of Government Ethics.
The Commission did not receive any reports from an external oversight entity during this
reporting period and had no outstanding recommendations from prior periods.
Assistance to or From Other Offices of Inspector General
Section 406(a)(3) of the Inspector General Act of 1978, as amended, gives the Inspector
General the authority to obtain assistance from any other Federal agency to carry out the
duties and responsibilities assigned by the Act. We currently have two Memorandums of
Understanding with the Office of Inspector General of the International Trade
Commission for technical assistance and legal support. We also have a Memorandum of
Understanding with the Office of Inspector General of the National Archives and Records
Administration for legal support. Finally, we have a Memorandum of Understanding with
Appalachian Regional Commission
Inspector General Semiannual Report
5
Report Period: April 1, 2025 to September 30, 2025
the Office of Inspector General of the Federal Maritime Commission for investigative
support.
Congressional Activities
The Inspector General did not respond to any Congressional requests during this
reporting period.
Council of the Inspectors General on Integrity and Efficiency
The Inspector General and staff actively participated in meetings and supported the
efforts of the Council of the Inspectors General on Integrity and Efficiency (CIGIE) and
its committees.
Federal Financial Management Improvement Act Reporting
The IG Act and the Federal Financial Management Improvement Act of 1996 (FFMIA)
require the inspectors general of certain agencies to report “instances and reasons” when
the agency has not met intermediate target dates established in a remediation plan to
bring the agency’s financial management system into substantial compliance with the
FFMIA. The Commission is not subject to the FFMIA; however, it voluntarily seeks to
comply with most of its requirements. During this reporting period, there were no events
that gave rise to a duty to report under FFMIA.
Peer Reviews
Our office had a modified peer review report completed of our audit function by the
Denali Commission’s Office of Inspector General. The report was issued on July 30,
2024, and determined the established policies and procedures for the audit function were
current and consistent with applicable professional standards. The report did not contain
any recommendations.
The next peer review of our audit function will be conducted in accordance with the
schedule set by the Council of Inspectors General on Integrity and Efficiency.
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-1
Report Period: April 1, 2025, through September 30, 2025
Table 1: Reporting Requirements Index
The table below identifies the 17 reporting requirements from the IG Act that must be
included in the semiannual report along with the corresponding page number where the
information can be found in this report.
Reporting Requirements Index
Description
Page
Review of Legislation
None
Description of Significant Problems, Abuses, and Deficiencies
2
Recommendations from Prior Periods and Potential Cost Savings
2, A-9
Summary of Significant Investigations Closed this Period
None
Total Number of Convictions from Investigations this Period
None
Each Report Issued During This Reporting Period
A-2
Management Decisions Made This Reporting Period for Recommendations Issued in
Prior Reports
2, A-3
Information Described Under Section 804(b) of FFMIA
5
Results of Peer Review Completed During This Period or Date of Last Peer Review
5
Outstanding Recommendations from Peer Review
None
Peer Reviews Conducted of Another Office of Inspector General During This Period
None
Statistical Table: Investigative Reports
A-11
Description of the Metrics Used for Developing Investigative Statistics
A-11
Investigations With Substantiated Misconduct Allegations Involving Senior Government
Employees
None
Description of Any Whistleblower Retaliation
None
Description of Attempts to Interfere with Inspector General Independence
None
Summary of Reports Not Disclosed to the Public
None
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-2
Report Period: April 1, 2025, through September 30, 2025
Table 2: Inspector General Reports Issued During this Reporting Period
The table below provides a list of each report issued by the Inspector General during this
reporting period. For each report, we provide the number of recommendations issued and
the number of management decisions received. The table also includes the amount of
questioned costs, unsupported costs, and funds that could be put to better use. Each report
can be viewed at https://www.oversight.gov/reports.
Reports Issued During this Reporting Period
Report
Number
Report Title
Date
Issued
# of
Recs.
Mgt.
Decisions
Questioned
Costs
Unsupported
Costs
Funds Put to
Better Use
25-23
City of Athens
4/29/2025
1
1
$10,000
$10,000
$0
INV-25-01
Love Must Win
5/15/2025
2
2
$0
$0
$0
25-24
The Harvest Foundation
5/29/2025
0
0
$0
$0
$0
25-25
Allegany County Commissioners
6/2/2025
0
0
$0
$0
$0
25-26
LENOWISCO Planning District
Commission
6/5/2025
3
3
$0
$0
$0
25-27
Millwald Theatre Inc.
6/30/2025
4
4
$693,374
$693,374
$0
25-28
South Cumberland Utility District
7/17/2025
2
2
$0
$0
$0
25-29
Decatur - Morgan County Port
Authority (DMPCA)
7/30/2025
0
0
$0
$0
$0
25-30
Cocke County Partnership, Inc.
7/30/2025
5
5
$533,109
$533,109
$0
25-31
Keystone College
7/30/2025
4
4
$80,000
$80,000
$0
25-32
Erie Area Council of Governments
7/30/2025
2
2
$5,134
$5,134
$0
25-33
Wilkes Recovery Revolution, Inc.
7/31/2025
1
1
$0
$0
$0
25-34
Southern Tier West Regional
Planning and Development Board
8/1/2025
4
4
$46,900
$46,900
$0
25-35
Blount County Education
Foundation, Inc.
8/6/2025
0
0
$0
$0
$0
25-36
UPMC Western Maryland
Corporation
8/21/2025
0
0
$0
$0
$0
25-37
Appalachian Community Capital
8/27/2025
3
3
$0
$0
$0
25-38
Challenger Learning Center of
Kentucky
9/10/2025
1
1
$0
$0
$0
25-39
Hamot Health Foundation
9/16/2025
1
1
$0
$0
$0
25-40
Pollen8
9/16/2025
2
2
$4,555
$4,555
$0
25-41
Tippah County Board of
Supervisors
9/16/2025
0
0
$0
$0
$0
25-42
Eastern Panhandle Regional
Planning and Development
Council
9/16/2025
0
0
$0
$0
$0
25-43
County of Crawford
9/25/2025
0
0
$0
$0
$0
25-44
French Broad Electric Membership
Corporation
9/25/2025
0
0
$0
$0
$0
Totals
35
35
$1,373,072
$1,373,072
$0
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-3
Report Period: April 1, 2025, through September 30, 2025
Table 3: Management Decisions Made for Recommendations from Prior Periods
This table identifies the audit reports with recommendations issued in previous reporting
periods, where the management decision was received during this reporting period. All
recommendations issued in previous reporting periods had management decisions made
prior to the start of the current reporting period.
Management Decisions Made for Recommendations from Prior Periods
Report
Number
Title
# of
Recs.
Mgt. Decisions
Made During
Prior Periods
Mgt. Decisions
Made During
This Period
Potential Cost
Savings
-
-
-
-
-
$0
Totals
0
0
0
$0
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-4
Report Period: April 1, 2025, through September 30, 2025
Table 4: Recommendations with Questioned Costs and Final Action Completed
The table below identifies recommendations with questioned costs where final action was
completed during this reporting period. The information in the table is subdivided to
distinguish between recommendations issued during this reporting period and
recommendations issued in prior reporting periods. The table includes the amount of
questioned costs identified in the audit report.
Recommendations with Questioned Costs with Final Action Completed
Audit Reports Issued During this Reporting Period
Report
Number
Rec.
Number
Title
Questioned Costs
25-23
25-23-01
City of Athens
$10,000
Subtotal
$10,000
Audit Reports Issued In Prior Reporting Periods
Report
Number
Rec.
Number
Title
Questioned Costs
24-32
24-32-01
Infinity Visual and Performing Arts, Inc.
$5,000
24-32
24-32-02
Infinity Visual and Performing Arts, Inc.
$17,383
24-32
24-32-03
Infinity Visual and Performing Arts, Inc.
$14,956
24-32
24-32-04
Infinity Visual and Performing Arts, Inc.
$40,400
24-40
24-40-01
Southern Highlands Community Mental Health Center, Inc.
$20,083
24-40
24-40-03
Southern Highlands Community Mental Health Center, Inc.
$2,565
24-40
24-40-04
Southern Highlands Community Mental Health Center, Inc.
$4,738
25-14
25-14-03
West Virginia Rural Water Association (WVRWA)
$44,420
25-14
25-14-04
West Virginia Rural Water Association (WVRWA)
$834
Subtotal
$150,379
Total
$160,379
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-5
Report Period: April 1, 2025, through September 30, 2025
Table 5: Recommendations Without Final Action – Audit Reports Issued This Period
The table below identifies recommendations from audit reports issued during this
reporting period where final action had not been completed. The table includes the
recommendation number and any potential cost savings.
Recommendations Without Final Action Completed
Audit Reports Issued During this Reporting Period
Report
Number
Rec.
Number
Recommendation
Potential
Cost
Savings
1
25-26
25-26-01
Revise policies and procedures to ensure accurate, current, and complete financial
results are reported on all Federal awards.
$0
2
25-26
25-26-02
Work with ARC to revise the non-ARC matching cost share amount final BAMR to
include the costs incurred of $2,381,000 for A&E fees and the in-kind land
acquisition, if requested.
$0
3
25-26
25-26-03
Revise policies and procedures to include procedures for determining the allowability
of costs to comply with the Uniform Guidance and ensure costs incurred under
Federal awards are allowable and allocable.
$0
4
25-27
25-27-01
Work with ARC to resolve the costs questioned totaling $693,374 for non-ARC
match construction costs.
$693,374
5
25-27
25-27-02
Develop policies and procedures for determining the allowability and allocability of
costs, record retention, and procurement standards as required under the Uniform
Guidance.
$0
6
25-27
25-27-03
Develop policies and procedures to ensure GL grant expenditures are reconciled with
supporting documentation to reflect accurate reporting of financial information.
$0
7
25-27
25-27-04
Work with ARC to resolve the reporting discrepancies of non-ARC matching cost
share expenditures to reflect the total cost incurred.
$0
8
25-28
25-28-01
We recommend that the Grantee develop and implement written policies and
procedures surrounding the management of Federal awards, in accordance with the
Uniform Guidance and the ARC grant manual.
$0
9
25-28
25-28-02
We recommend that the Grantee establish a proper accounting system to accurately
maintain and track grant records of funds related to Federally-funded activities, in
accordance with Federal requirements.
$0
10
25-30
25-30-01
Establish policies and procedures for administrative and financial management
including determining the allowability and allocability of costs, record retention,
procurement, internal control, tracking of costs by approved budget categories,
reconciliation of costs to financial reports, and timely submission of performance
progress and financial reports in accordance with the Uniform Guidance and grant
agreement.
$0
11
25-30
25-30-02
Work with ARC to resolve the questioned cost totaling $456,942 for ARC funded
costs.
$456,942
12
25-30
25-30-03
Work with ARC to resolve the questioned cost totaling $75,000 for non-ARC
matching cost share.
$75,000
13
25-30
25-30-04
Revise and resubmit the SF-270 and the related reimbursement table to reflect the
accurate budget category of Contractual cost instead of Personnel.
$0
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-6
Report Period: April 1, 2025, through September 30, 2025
14
25-30
25-30-05
Work with ARC to resolve the questioned cost totaling $1,167 for non-ARC
Matching cost share.
$1,167
15
25-31
25-31-01
We recommend that the Grantee develop and implement formal written policies and
procedures surrounding the management of Federal awards, in accordance with the
Uniform Guidance.
$0
16
25-31
25-31-02
We recommend that the Grantee work with ARC, to resolve the $45,000 of
questioned costs.
$45,000
17
25-31
25-31-03
We recommend that the Grantee work with ARC, to resolve the $35,000 of
questioned costs.
$35,000
18
25-31
25-31-04
We recommend that the Grantee work with ARC to resolve $12,775 of unallowed
pre-award cost following the resolution of Recommendation 3 as the funds are
included as part of the $35,000 questioned in Finding 2025-002.
$0
19
25-32
25-32-01
We recommend that the Grantee develop and implement written policies and
procedures surrounding the management of Federal awards; specifically addressing
the reasonableness, allocability, and allowability of costs incurred and charged to
grants, as required by Federal regulations.
$0
20
25-32
25-32-02
We recommend that the Grantee work with ARC, to resolve the $5,134.
$5,134
21
25-34
25-34-01
Establish internal controls to ensure all in-kind contributions are properly supported
by documentation to establish the method used to determine the value of in-kind
contributions in accordance with the Uniform Guidance requirements based on the
type of cost and source of in-kind contributions.
$0
22
25-34
25-34-02
Establish internal controls to ensure STW retains accurate and complete supporting
documentation in accordance with record retention requirements in the ARC grant
agreement and the Uniform Guidance.
$0
23
25-34
25-34-03
Work with ARC to resolve the non-ARC in-kind questioned costs of $46,900 to
reflect the $275 rental fee rate.
$46,900
24
25-34
25-34-04
Establish policies and procedures for the timely submission of progress reports in
accordance with the Uniform Guidance and grant agreement
$0
25
25-37
25-37-01
Develop and implement formal written policies and procedures to ensure all
subaward agreements fully comply with federal requirements, including the inclusion
of the Federal Award Identification Number. These procedures should also require
that subrecipients provide final written certification to the federal awarding agency or
pass-through entity at the conclusion of each federal award, confirming that the
project or activity was completed or that the agreed-upon level of effort was
expended.
$0
26
25-37
25-37-02
Provide staff training on these policies and procedures, and establish a process for
periodic internal reviews or monitoring to verify compliance.
$0
27
25-37
25-37-03
Establish and implement policies and procedures to ensure timely preparation and
submission of financial and progress reports in accordance with the Uniform
Guidance and ARC grant agreement requirements.
$0
28
25-38
25-38-01
We recommend that the Grantee develop and implement formal written policies and
procedures surrounding the management of Federal awards, in accordance with the
Uniform Guidance.
$0
29
25-39
25-39-01
We recommend that the Grantee establish policies and procedures for the timely
submission of progress reports in accordance with the Uniform Guidance and grant
agreement.
$0
30
25-40
25-40-01
Revise policies and procedures over the maintenance of accounting records to ensure
costs incurred for Federal awards are accurately recorded and supported by
documentation prior to reporting financial information to ARC.
$0
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-7
Report Period: April 1, 2025, through September 30, 2025
31
25-40
25-40-02
Work with ARC to resolve the questioned costs totaling $4,231 of ARC funded
personnel cost and $324 of ARC funded fringe benefits cost.
$4,555
Subtotal
$1,363,072
Table 6: Recommendations Without Final Action – Audit Reports Issued in Prior Periods
The table below identifies recommendations from audit reports issued in prior reporting
periods where final action had not been completed. The table includes the
recommendation number and any potential cost savings.
Recommendations Without Final Action Completed
Reports Issued in Prior Reporting Periods
Report
Number
Rec.
Number
Recommendation
Potential
Cost
Savings
1
25-08
25-08-01
Work with ARC to resolve the inaccurate reporting of $116,808 for non-ARC match
construction cost.
$116,808
2
25-08
25-08-02
Revise policies and procedures for financial reporting of grant costs to include
quality control reviews of grant expenses to ensure costs are accurately reported to
ARC.
$0
3
25-10
25-10-01
Work with ARC to resolve the reporting discrepancies and revise the Final SF 270 to
exclude the questioned cost of $52,706 for ARC funded cost and $14,650 for non-
ARC match costs.
$67,356
4
25-10
25-10-02
Work with ARC to resolve the questioned cost totaling $25,849 for ARC funded
equipment costs.
$25,849
5
25-10
25-10-03
Establish and implement policies and procedures for determining the allowability and
allocability of costs, record retention, safeguarding of equipment, timekeeping, and
procurement standards as required under the Uniform Guidance.
$0
6
25-11
25-11-01
We recommend that Johnson College implement its existing procurement policy, by
requiring that the minimum number of price quotations are received and documented
for each procurement action.
$0
7
25-11
25-11-02
We recommend that Johnson College work with ARC, to resolve the $72,122 of
questioned matching costs.
$72,122
8
25-11
25-11-03
Since the grant period had ended and the reporting section of ARC portal is no longer
accessible, we recommend that Johnson College’s management communicate with
the ARC grant coordinator to request access to the portal in order to resubmit the
missing SF-270 and Performance Progress reports.
$0
9
25-11
25-11-04
We recommend that Johnson College’s management review and update its internal
grant management procedures to include clearer guidelines on reporting during all
phases of a grant, including during no-cost extension periods. Additionally, grant
staff should receive training to ensure that they are aware of their reporting
responsibilities.
$0
10
25-12
25-12-01
We recommend that the Grantee develop written policies and procedures surrounding
the management of Federal awards, in accordance with the Uniform Guidance.
$0
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-8
Report Period: April 1, 2025, through September 30, 2025
11
25-12
25-12-02
We recommend that the Grantee take appropriate internal control measure to ensure
adequate segregation of duties in its invoice preparation process.
$0
12
25-12
25-12-03
We recommend that the Grantee work with ARC, to resolve the $33,614 of
questioned costs.
$33,614
13
25-13
25-13-01
We recommend that Cattaraugus-Allegany BOCES’ management develop and
implement grant management policies and procedures to ensure timely preparation
and submission of the required reports.
$0
14
25-15
25-15-01
Revise its policies and procedures to align with the Uniform Guidance requirement
for price to be considered as a factor in evaluating proposals for professional services
other than A/E services.
$0
15
25-15
25-15-02
Work with ARC to resolve the questioned cost totaling $136,730 for ARC funded
construction cost.
$136,730
16
25-15
25-15-03
Work with ARC to resolve the questioned cost totaling $134,230 for non-ARC
Matching cost share construction cost.
$134,230
17
25-18
25-18-01
Revise their policies and procedures to improve internal controls in place over
maintenance of accounting records to ensure costs incurred for Federal awards are
accurately recorded and supported by documentation prior to reporting financial
information.
$0
18
25-18
25-18-02
Work with ARC to resolve the questioned cost totaling $15,510 for A&E fees
claimed as non-ARC matching cost.
$15,510
19
25-18
25-18-03
Revise policies and procedures to ensure expenditures incurred and reported align
with the approved scope of work and budget of the grant project.
$0
20
25-18
25-18-04
Work with ARC to resolve the total questioned costs in the amount of $58,666 of
non-ARC matching construction cost.
$58,666
21
25-18
25-18-05
Implement policies and procedures to ensure that property records accurately reflect
all required data elements included in the Uniform Guidance.
$0
22
25-21
25-21-01
We recommend that the Grantee develop and implement written policies and
procedures surrounding the management of Federal Awards, in accordance with the
Uniform Guidance.
$0
23
25-21
25-21-02
We recommend that the Grantee work with ARC to resolve the $3,321 in questioned,
matching costs.
$3,321
Subtotal
$664,206
Total
$2,027,278
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-9
Report Period: April 1, 2025, through September 30, 2025
Table 7: Status of Audit Reports Issued with Final Action Completed
The table below provides a list of each audit report with final action completed during
this reporting period. The information is subdivided by final action completed for audit
reports issued during this period and audit reports issued in prior reporting periods.
Status of Audit Reports Issued with Final Action Completed
This Reporting Period
Report Title
# of
Recs.
Mgt.
Decisions
Decisions
IG Disagrees
With
Final Action
Complete
1
City of Athens, 25-23
1
1
0
1
2
The Harvest Foundation, 25-24
0
0
0
0
3
Allegany County Commissioners, 25-25
0
0
0
0
4
Decatur - Morgan County Port Authority
(DMPCA), 25-29
0
0
0
0
5
Wilkes Recovery Revolution, Inc., 25-33
1
1
0
1
6
Blount County Education Foundation, Inc., 25-35
0
0
0
0
7
UPMC Western Maryland Corporation, 25-36
0
0
0
0
8
Tippah County Board of Supervisors, 25-41
0
0
0
0
9
Eastern Panhandle Regional Planning and
Development Council, 25-42
0
0
0
0
10
County of Crawford, 25-43
0
0
0
0
11
French Broad Electric Membership Corporation,
25-44
0
0
0
0
Totals
2
2
0
2
Prior Reporting Periods
Report Title
# of
Recs.
Mgt.
Decisions
Final Action
Complete
Prior Period
Final Action
Complete
This Period
1
Infinity Visual and Performing Arts, Inc., 24-32
4
4
0
4
2
Southern Highlands Community Mental Health
Center, Inc., 24-40
5
5
0
5
3
Western NC Housing Partnership (WNCHP),
25-01
2
2
0
2
4
West Virginia Rural Water Association
(WVRWA), 25-14
5
5
2
3
5
West Virginia Development Office (WVDO),
25-16
1
1
0
1
Totals
17
17
2
15
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-10
Report Period: April 1, 2025, through September 30, 2025
Table 8: Status of Audit Reports Issued Without Final Action
This table provides the status of audit reports with recommendations where final action
has not been completed. The information is subdivided by audit reports issued during this
reporting period and audit reports issued in prior reporting periods.
Status of Audit Reports Issued Without Final Action
This Reporting Period
Report Title
# of
Recs.
Mgt.
Decisions
Decisions
IG Disagrees
With
Final
Action
Complete
Final
Action Not
Complete
1
LENOWISCO Planning District
Commission, 25-26
3
3
0
0
3
2
Millwald Theatre Inc., 25-27
4
4
0
0
4
3
South Cumberland Utility District,
25-28
2
2
0
0
2
4
Cocke County Partnership, Inc., 25-30
5
5
0
0
5
5
Keystone College, 25-31
4
4
0
0
4
6
Erie Area Council of Governments,
25-32
2
2
0
0
2
7
Southern Tier West Regional Planning
and Development Board, 25-34
4
4
0
0
4
8
Appalachian Community Capital,
25-37
3
3
0
0
3
9
Challenger Learning Center of
Kentucky, 25-38
1
1
0
0
1
10
Hamot Health Foundation, 25-39
1
1
0
0
1
11
Pollen8, 25-40
2
2
0
0
2
Totals
31
31
0
0
31
Prior Reporting Periods
Report Title
# of
Recs.
Mgt.
Decisions
Final Action
Complete
Prior
Periods
Final
Action
Complete
This
Period
Final
Action Not
Complete
1
Fentress County, 25-08
2
2
0
0
2
2
Fort Payne-DeKalb County
Entrepreneurial Center, 25-10
3
3
0
0
3
3
O.S. Johnson Technical Institute d/b/a
Johnson College, 25-11
4
4
0
0
4
4
Kentucky Equine Education Project
(KEEP) Foundation, 25-12
3
3
0
0
3
5
Cattaraugus-Allegany BOCES, 25-13
1
1
0
0
1
Appalachian Regional Commission
Appendix A: Inspector General’s Tables
A-11
Report Period: April 1, 2025, through September 30, 2025
6
Perry County Fiscal Court, 25-15
3
3
0
0
3
7
Town of Lebanon, 25-18
5
5
0
0
5
8
Augusta Levy Learning Center
(ALLC), 25-21
2
2
0
0
2
Totals
23
23
0
0
23
Table 9: Statistical Table of Investigative Reports
The table below provides statistical information related to investigative reports issued
during the reporting period.
Statistical Table of Investigative Reports
Description
Count
Number of investigative reports issued
1
Number of persons referred to DOJ for criminal prosecution
0
Number of persons referred to state and local authorities for criminal prosecution
0
Number of indictments and criminal information resulting from any prior referrals to prosecuting authorities.
0
Number of convictions during the reporting period resulting from investigations
0
The information in this table is derived from the Office of Inspector General’s investigation reports.
Appalachian Regional Commission
Appendix B: Commissioner’s Statistical Tables
B-1
Report Period: April 1, 2025, through September 30, 2025
Table A: Management Decisions Made for Recommendations from Prior Periods
The table below identifies each report issued during prior reporting periods in which
management decisions were made during this reporting period, along with the amount of
questioned costs and funds put to better use. The allowability of questioned costs is determined
through the management decision process and is not reported until final action has been
completed.
At the commencement of this reporting period, the Commission had made management
decisions for all recommendations for all reports issued in prior reporting periods.
Management Decisions Made for Recommendations from Prior Periods
Report
Number
Prior Period
Recommendations
without Management
Decisions
Management
Decisions Made
in This Period
Questioned
Costs
Funds Put
to Better
Use
-
-
-
-
-
-
Total
Table B: Recommendations with Final Action Completed During this Reporting Period
The table below provides statistical information on the recommendations with questioned costs
where final action was completed during this reporting period. The table provides the total dollar
value of the allowed costs and disallowed costs for the reporting period.
Recommendations with Final Action Completed During this Reporting Period
Description
Total
Dollar Value
Recommendations with Final Action Completed
10
$160,379
•
Dollar value of allowed costs (ARC)
$159,545
•
Dollar value of disallowed costs, recovered by
management.
$834
•
Dollar value of disallowed costs written off by
management.
$0
•
Dollar value of disallowed costs from this reporting
period, not yet recovered.
$0
•
Dollar value of disallowed costs from prior reporting
periods, not yet recovered.
$100,000
Recommendations that management has subsequently
concluded should not or could not be implemented or
completed.
0
$0
Appalachian Regional Commission
Appendix B: Commissioner’s Statistical Tables
B-2
Report Period: April 1, 2025, through September 30, 2025
Table C: Status of Reports with Questioned Costs
The tables below provide statistical information related to reports with questioned costs. The first
table identifies the number of reports with questioned costs for both prior periods and the current
period. The second table describes the status of those reports with questioned costs and funds to
be put to better use. The table details the total dollar value of allowed costs, disallowed costs, and
funds to be put to better use as identified in the management decision. In cases where a
management decision has not been received, the dollar value shown is the amount identified in
the report.
Reports with Questioned Costs
Description
Number of
Reports
Questioned
Costs
Funds Put to Better
Use
Prior period reports with questioned costs at the
beginning of the reporting period
10
$814,585
$0
Reports issued this period with questioned
costs
7
$1,373,072
$0
Total Reports with Questioned Costs
17
$2,187,657
$0
Status of Reports with Questioned Costs
Description
Number of
Reports
Questioned
Costs
Allowed
Costs1
Disallowed
Costs
Funds Put
to Better
Use
Prior period reports with final
action completed during this
reporting period
3
$150,379
$149,545
$834
$0
Reports issued during this
reporting period with final action
completed
1
$10,000
$10,000
$0
$0
Reports without final action
completed
13
$2,027,278
$0
Totals
17
$2,187,657
$159,545
$834
$0
1 Allowed costs include questioned costs identified at the time of audit that were resolved by correcting errors on
financial reports submitted to ARC. These costs are typically related to matching requirements and in-kind
contributions and do not require a recovery by ARC.
Appalachian Regional Commission
Appendix B: Commissioner’s Statistical Tables
B-3
Report Period: April 1, 2025, through September 30, 2025
Table D: Prior Year Management Decisions Without Final Action
The table below identifies each report from prior periods, where management decisions were
made in the preceding year, but final action has not been taken.
The Commission has completed final action on all management decisions made in the preceding
year.
Prior Year Management Decisions Without Final Action
Report
Date
Issued
Disallowed
Costs
Funds Put to
Better Use
Reason Final Action has Not
Been Taken
N/A
-
-
-
-