Finding Text
Significant deficiencies relating to the Organization's compliance with the Uniform Guidance are reported in the Independent Auditor's Report on Compliance for Each Major Federal Program and Reporting on Internal Control over Compliance Required by the Uniform Guidance. Findings 2023-002 are reported as significant deficiencies. Condition: Management did not implement internal controls over rent subsidies. It was noted while testing key controls over subsidies recorded to Solid Ground’s financial records. Criteria: Solid Ground must establish and maintain effective internal controls over the financial 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 per CFR § 200.303. These requirements detail the information that must be included in Solid Ground’s internal controls. Cause: Management did not design and implement internal controls to review and reconcile subsidies. Effect: The absence of controls over subsidies incurred lead to an increase risk of errors, misstatements, or omissions in the financials statements which could misreport Solid Ground’s financial statements.