Audit 377479

Condition: Reporting of grant income and expenditures to the federal award agency did not have the proper controls in place to detect and prevent inaccurate amounts. Criteria: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effectiveinternal control over the Federal award that provides reasonable assurance that the non-Federalentity is managing the Federal award in compliance with Federal statutes, regulations, and the termsand conditions of the Federal award. These internal controls should be in compliance with guidancein “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Cause: Internal controls were inadequate over the grant reporting process. Effect: Reporting under grants may be inaccurate without a secondary review.Recommendation: Procedures should be implemented requiring an individual to perform a secondary review of grant reporting and supporting documentation prior to submission.