Finding 1078165 (2022-001)

Finding No. 2022-001 Type of Finding: Internal control over preparation of the schedule of expenditures of federal awards Criteria: Federal subaward expenditures must be included in the schedule of expenditures of federal awards. Condition: Subsequent to year end, DRC identified federal expenditures related to the program Coronavirus State and Local Fiscal Recovery Funds, CFDA No. 21.027, that were misclassified as state expenditures. Cause: The misclassification of expenditures was the result of a failure in DRC's internal control processes over preparation of the schedule of expenditures of federal awards. Effect: The schedule of expenditures of federal awards, previously reported on February 14, 2023, was understated by $1,114,429. The schedule of expenditures of state awards, previously reported on February 14, 2023, was overstated by $1,114,429. Recommendation: We recommend DRC to perform thorough evaluations of individual grants to ensure federal expenditures are accurately captured and reported on the schedule of expenditures of federal awards and perform an additional review process for the preparation of the schedule of expenditures of federal awards. Views of Responsible Officials: DRC agrees with the finding and has taken steps to rectify the finding.