Finding Text
2023-001 U.S. Department of Treasury
Passed through State of Minnesota
Coronavirus State and Local Fiscal Recovery Funds
Reporting Deficiency in Internal Control over Compliance
Condition: During the course of our engagement, we noted that the City did not perform control procedures over the reporting process. The Finance Director prepared and submitted required reports.
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over reporting.
Cause: The City did not have processes in place to ensure reports were reviewed by someone other than the preparer.
Effect: The reports submitted had an increased risk of not being accurate.
Recommendation: We recommend the City establish a specific procedure to have someone review federally required reports other than the preparer.
Management Response: The City will establish procedures to ensure future reports are reviewed.