Finding 1056959 (2021-001)

Criteria In accordance with Title 2 U.S. Code of Federal Regulations, Part 200.303, Internal controls, “Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition The Authority had not finalized the Schedule of Expenditures of Federal Awards (the Schedule) for the year ended June 30, 2021 in a timely manner. Cause The Schedule for the year ended June 30, 2021 included a number of COVID-19 programs. Various individuals in the Authority were involved and responsible for monitoring the terms and conditions of the federal awards and reporting of the federal expenditures. COVID-19 also impacted a number of resources within the Authority causing various constraints. Management continued to enhance procedures related to preparation and assessment of the Schedule. However, assistance listing number 21.019 – COVID-19 – Coronavirus Relief Fund continued to cause delays, which was the primary driver in the delay in the finalization of the Schedule. Refer to finding 2021-002 for further details. Effect or potential effect The reporting and verification of the completeness and accuracy of the expenditures required more time than expected due to the COVID-19 nature of the funds. Questioned costs None. Context The audit was not completed and the reporting submitted within the earlier of 30 calendar days after receipt of the auditor’s reports, or nine months after the end of the audit period as required by the Uniform Guidance. Identification of a repeat finding This is a repeat finding of Finding 2020-001 in the prior year. Recommendation The Authority’s policy and procedures should be designed to ensure timely reporting as required by the Uniform Guidance. View of responsible officials There is no disagreement with the audit finding.