Finding Text
U.S. Department of Treasury
COVID-19- Coronavirus State and Local Fiscal Recovery Funds (SLFRF) (FFAL #20.027)
Reporting
Material Weakness in Internal Control over Compliance
Criteria: Per Uniform Guidance (200.303), the recipient/subrecipient must:
Establish, document, and maintain effective internal control over the Federal award that
provides reasonable assurance that the recipient or subrecipient 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).
Under the SLFRF program, the District is required to submit a quarterly project and expenditure
report. Thus, the reporting process is required to have an effective internal control process by
the District.
Condition: While there is a process to prepare the required reports for the federal reports, such reports are
not reviewed prior to their submittal to the granting entity.
Questioned
Costs: None reported
Effect: Without a review process, reports may be in error and not caught and corrected prior to
finalizing and submitting those reports.
Cause: Internal controls do not appear to be in place to provide a review process in place over SLFRF
reporting.
Repeat finding
From Prior Year:
No
Context: Out of the 2 sample of reports tested, neither report had an indication of a secondary review
prior to submittal to the granting entity. Non-statistical sampling was used. Recommendation:
We recommend that management update their control processes to ensure that the proper
review of the reports is performed before it is submitted to the granting agency.
Views of Responsible Officials:
We agree with the finding.