Finding Text
COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) – Federal Assistance Listing Number 20.027
Condition: We noted one disbursement of grant funds supported by a claim form with only one source of approval. Another disbursement was supported by a claim form with only one source of approval and the check issued was signed by only one authorized signer.
Criteria: 2 CFR 200.303(a) states the non-Federal entity must establish and maintain effective internal control over the Federal award. Also, CFR 200.302(b)(3) states the financial management system of each non-Federal entity must provide records that identify adequately, among other things, proper authorizations.
Cause: Internal controls over cash disbursements were overridden. The County’s policy is to require two signatures on all checks, as well as a completed claim form which is approved by a department head, the county clerk, and a member of the claims committee.
Effect: Unauthorized or improper use of grant funds could occur.
Context: A total of thirteen disbursements was selected for testing, which was 100% of the population. The use of grant funds for the purpose of these disbursements was previously approved by the county board. Therefore, there are no questioned costs.
Recommendation: Management should follow the internal control policies in effect for the disbursement of other County funds in the disbursement of CSLFRF grant funds.
Views of Responsible Officials and Planned Corrective Actions: Management will follow controls implemented over approving claim forms and signing checks for other County disbursements for CSLFRF grant disbursements.