Audit 375583

2025-001 U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds, 21.027 Other Material Weakness in Internal Control over Compliance Grant Award Number: ARPA00849 Criteria: Management is responsible for establishing and maintaining an effective system of internal control over financial reporting and over compliance. Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires TMWA to prepare a Schedule of Expenditures of Federal Awards (SEFA) as prescribed by section 200.510(b) showing total federal financial assistance expenditures for the year. Condition: An expenditure was originally included on the June 30, 2025 SEFA. However, the expenditure should have been reported on the June 30, 2024 SEFA. Cause: TMWA did not have adequate internal controls to ensure total federal financial assistance expenditures were reported on the SEFA in the correct period. Effect: Prior to correction, federal financial assistance expenditures were overstated on the June 30, 2025 SEFA by $128,805 for the grant. Questioned Costs: None Context/Sampling: This was the only expenditure for this grant award originally included on the SEFA, and therefore represented the full population. Repeat Finding from Prior Year: No Recommendation: We recommend TMWA enhance internal controls to ensure federal financial assistance expenditures are reported on the SEFA in the correct period. Views of Responsible Officials: Management agrees with the finding.