Finding Text
Material Weakness in Internal Control Over Compliance – G. Matching, Level of Effort, Earmarking
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Organization must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)”.
Condition and Context: During 2023, the Organization reconciled the applicable match at the end of the grant period and submitted to the City of Indianapolis. There was no documentation on review of the schedule of the match nor was there a periodic assessment of the match until the reporting date.
Cause and Effect: We noted a lack of internal controls surrounding the tracking and review of the match. Errors could have occurred in the annual grant matching report which could have resulted in material non-compliance.
Recommendation: We recommend the Organization implement procedures to track the match on a monthly basis with adequate review and approval.
Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the recommendation and plans to implement a formal review expenditures of federal awards corrective action by December 31, 2024.