Audit 370154

2024-001 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AL Number and Title: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Grantor Name: United States Department of the Treasury Pass Through Entity: Washington State Department of Commerce Criteria: Uniform Guidance, 2 CFR 200.302 - Financial Management, requires a federal award recipient to maintain a financial management system that provides for the identification of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the Assistance Listings title and number, Federal award identification number, year the Federal award was issued, and name of the Federal agency or pass-through entity. Condition: CCAP did not prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) for the year ending December 31, 2024. Cause: CCAP did not design and implement effective internal controls to ensure the accurate identification of all Federal awards received and expended and the Federal programs under which they were received. Effect: CCAP did not maintain a financial management system to allow for the accurate identification of all federal awards received and expended and the Federal program under which they were received. Significant adjustments totaling $1,352,645 were required to correct the Schedule of Expenditures of Federal Awards for the year ended December 31, 2024. Failure to accurately identify all Federal awards received and expended increases the risk that errors or noncompliance with Federal award requirements could occur and not be detected and corrected in a timely manner. Auditor’s Recommendation: CCAP should design and implement internal controls to ensure the identification of all Federal awards received and expended and the Federal programs under which they were received. This includes creating formally documented policies and procedures that detail the process for identifying federal funding sources and maintaining source documentation such as grant award agreements, budgets, and other relevant financial management documents that help ensure compliance with Federal requirements. Questioned Costs for Finding 2024-001: No questioned costs were noted for this finding.