Finding Text
Finding 2023-003: Material Weakness - Internal Control Over Reporting
Program: COVID-19 State & Local Fiscal Recovery Funds
Grantor Agencies: U.S. Department of Treasury & WI Department of Health Services
Assistance Listing Number: 21.027
Criteria: All required reporting should be reviewed with proper detail to ensure they are completed accurately and properly approved prior to submission.
Condition/Context: Of the three reports selected for testing, none included documentation of proper review. Additionally, the two reports tested related to the funding passed through DHS were not completed with accuracy or on a timely basis. As a result of this, both reports erroneously included expenditures incurred after the reporting period. Overall, the expenditures do agree to the amount awarded by DHS despite these discrepancies of when the expenditures were reported.
Cause: The Village was not aware of the requirement to complete and retain documentation of review prior to submitting these reports. There also was not proper review to identify and correct these reporting errors prior to submission.
Effect: The reports could contain inaccurate information leading to an impact on future grant funding.
Questioned Costs: None noted.
Recommendation: We recommend the Village implement procedures to review reporting prior to submission. This should include verification that the report is accurate as compared to the underlying data, mathematically correct and submitted timely. Documentation of this review should be retained on file.
Management response and Corrective Action Plan: Management agrees with the finding. Village Management staff will prepare the support document, the Village Administrator will review the support and submit to the appropriate approving Department for their submittals to the programs on a month end basis.