Finding 1056939 (2023-002)

Finding 2023-002 AL No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency U.S. Department of Treasury Pass-through Agency Not applicable Award Number / Year 2023 Department Shawano County Department of Finance Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer before they are submitted to the granting agency. Condition/Context: During our testing, it was noted that the 2023 project and expenditure report was not reviewed by an independent person before submission for reimbursement. Our sample was not statistically valid. Cause: The county did not have internal control procedures in place requiring an independent person to review the reports before submission to ensure the report was accurate. Questioned Costs: None noted. Effect: Reports submitted could contain errors. Recommendation: We recommend that an employee other than the preparer review all reports before they are submitted to grantors. Management’s Response: Internal guidance has been provided to all departments for documented reviews of compliance requirements. An update will be made to the financial policy.