Finding Text
Finding 2023-008: Reporting
Information on the Federal Program: 97.024 - Emergency Food and Shelter National Board
Program
Type of Finding: Significant Deficiency in Internal Control over Compliance and Material Noncompliance
Criteria: According to 2 CFR §200.303, the non-Federal entity must: (a) 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: During the audit, we noted that there is no documented review and approval of program
reports prior to submission. In addition, we noted that the submission date of reports selected for
review was not adequately documented.
Cause: Management did not have effective internal controls in place to ensure that a secondary level
of review of approval is clearly documented, which indicates who performed the control, and when the
control was performed. In addition, program reports were submitted to the funder's online system,
which SAMU no longer had access to during the audit. SAMU did not adequately retain internal
documentation to support submission date of the reports outside of that system.
Effect or Potential Effect: Without established controls over reporting, there is a reasonable
possibility that SAMU would not detect noncompliance in the normal course of performing duties and
correct them in a timely manner.
Questioned Costs: None noted.
Context: 4 of the 4 program reports selected for testing did not have documented evidence of review
or approval. 4 of the 4 program reports and 1 of 1 final financial report selected for testing did not have
documented evidence to support timely submission.
Identification as a Repeat Finding, if Applicable: 2022-005
Recommendation: We recommend that management of SAMU implement procedures and control
processes to incorporate and document an independent review and approval, evidenced by a
signature/initialing and date of the review and approval taking place. In addition, management should
ensure that internal documentation is retained to support submission date of reports.