Finding Text
Material Weakness, Internal Control Over Compliance, Allowable Costs & Activities, Reporting
ALN 21.032: Local Assistance And Tribal Consistency Fund
Federal Agency: U.S. Department Of Treasury
Pass-Through Entity: N/A
Criteria Or Specific Requirement: The Local Assistance and Tribal Consistency Fund (LATCF) was established to provide funding for counties and Tribal governments for revenue enhancement. Recipients are required to determine allowable costs and activities as well as submit periodic reports to the awarding agency on elements including financial data, projects funded, expenditures, and certain contracts and subawards.
Condition: In our audit, we noted the County did not have a documented review process over the determination of allowable costs and activities or over the submission of the Obligation and Expenditure report.
Cause: The County did not have an internal controls process in place over federal grant requirements related to allowable costs and activities and reporting of LATCF expenditures.
Effect: Without sufficient documentation and monitoring controls, the County may not timely detect an error in allowable costs and activities or reporting requirements.
Identification As A Repeat Finding: N/A
Recommendation: We recommend the County improve its internal controls by documenting a review process over allowable costs and activities determinations and over Obligation and Expenditure reports submissions by a person that did not prepare the information related to the key aspects of the report.
Views Of Responsible Officials And Planned Corrective Action: The County agrees with the finding and has put together a correction action plan for the finding. See corrective action plan included in this report.