Finding Text
Agency: Employment and Training Administration Office of Grants Management
ALN: 17.289
Federal Award Identification Number: 23A60C9000032-01-00
Criteria: Under the Committee of Sponsoring Organization framework, control activities are established through policies and procedures that help ensure that management’s directives to mitigate risks to the achievement of objectives are carried out. Segregation of duties is typically built into the selection and development of control activities. According to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 200.327 and 200.328, recipients of federal awards are required to submit performance and financial reports by the due dates specified in the terms and conditions of the federal awards.
Context and Condition: There was an overall lack of segregation of duties surrounding the preparation and submission of grant reimbursement requests as the VP of Finance performed this function himself with no review and approval.
Cause: The Entity failed to establish a set of internal control procedures to ensure segregation of duties and an appropriate review and approval process.
Effect: There was a lack of adequate review and oversight over grant reporting.
Repeat Finding: No
Recommendation: We recommend that the Entity establish internal control procedures that incorporate segregation of duties and add a level of review and approval for grant reporting.
Views of Responsible Officials and Planned Corrective Action: See attached corrective action plan.
Questioned Costs: None