Finding Text
FINDING 2023-006
Subject: Coronavirus State and Local Fiscal Recovery Funds - Reporting
Federal Agency: U.S. Department of Treasury
Assistance Listing Number: 21.027
Federal Award Number: FY 2021
Pass-Through Entity: N/A
Compliance Requirements: Reporting
Audit Findings: Significant Deficiency, Internal Controls
Criteria: 2 CFR 200.302(b) states in part:
"The financial management system of each non-Federal entity must provide for the following:
(2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in
accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ."
34 CFR 76.722 states:
"A State may require a subgrantee to submit reports in a manner and format that assists the State in
complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities
under the program."
Condition: The Town did not have a documented review control in place to ensure the annual report was
reviewed by someone other than the preparer.
Cause: There were not sufficient internal controls in place to ensure the accuracy of the annual report.
Context: There was no documented review by someone other than the preparer of the annual report to
ensure the information submitted was complete and accurate. Per discussion with management, verbal
review occurred but there is no documentation to support that review occurred.
Effect: The failure to establish an effective internal control system placed the Town at risk of noncompliance
with the grant agreement and the Reporting compliance requirements.
Identification as a repeat finding, if applicable: No
Recommendation: We recommend someone other than the preparer of the report perform a documented
review prior to submission to validate the accuracy and completeness of the data submitted.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding
and has prepared a corrective action plan.