Finding Text
Federal Agency: Department of Justice
Federal Program Name: Services for Victims of Human Trafficking
Assistance Listing Number: 16.320
Federal Award Identification Number and Year: 2020-VT-BX-0080, 2020-VM-BX-0003,
15POVC-21-GG-03694-HT (2021), and 2020-HT-OVC-614
Award Period: October 1, 2020 through September 30, 2024
Type of Finding:
• Material Weakness in Internal Control over Compliance
Criteria or specific requirement: The Organization is required to submit quarterly financial reports and semi-annual performance reports to the Federal Agency.
Condition: The Organization did not have controls in place to prevent, detect, or correct errors in reporting.
Questioned costs: None
Context: During our testing, it was noted that there was no formal layer of review over the required reports prepared before it was submitted to the Federal Agency. The financial information submitted was not supported as records were not retained.
Cause: The Organization was in its startup phases and was struggling to maintain current operations with limited staff.
Effect or potential effect: The financial information reported to the Federal Agency could be materially misstated.
Repeat Finding: No
Recommendation: We recommend the Organization design controls to ensure reports are prepared and reviewed by separate individuals and that the information gathered to prepare the report is retained.
Views of responsible officials: We agreed with the above comment. The Organization will put a formal layer of review after preparation of the report and before submission to the Federal Agency and will make sure support gathered is retained.