Finding Text
Federal Agency: U.S. Department of the Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: SLFRP1045 - 2021
Pass-Through Agency: City of Seattle
Pass-Through Number(s): DC222308
Award Period: 4/1/2022 to 3/31/2023
Type of Finding:
• Significant Deficiency in Internal Control Over Compliance
Criteria or specific requirement: 2 CFR 200.303 of the Uniform Guidance states the recipient of Federal awards must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the 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: Controls over expenditure approval were not being consistently applied.
Questioned costs: $3,781
Context: Of the 29 general disbursements tested, 5 expenditures did not show evidence of approval
Cause: Likely caused by an administrative oversight or error.
Effect: Potential outcome would be an unallowable cost being charged to the Federal program.
Repeat finding: No
Recommendation: We recommend that approval of all expenditures, whether initiated by an invoice or a journal entry be documented. In the case where the expenditure is likely to be charged to a Federal program, it is recommended there be documentation of approval from someone knowledgeable of allowability of costs (it is permissible if this is the same individual as the initial approver).
Views of responsible officials: There is no disagreement with the audit finding.