Finding Text
Federal agency: U.S. Treasury
Federal program title: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Pass-Through Agency: City of Champaign, Illinois; Champaign County, Illinois; City of Urbana, Illinois
Pass-Through Number(s): 20220245; 02220246; 2224-FF-CO
Award Period: 7/1/2023-12/31/2026; 3/1/2023-12/30/2023; 12/15/2023-12/31/2024; 3/1/2022-12/31/2023; 3/1/2022-12/31/2024
Type of Finding: Material Weakness in Internal Control over Compliance and Other Matter
Criteria or Specific Requirement: Code of Federal Regulations (CFR) § 200.303(a) indicates nonfederal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal 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: Lack of supporting documentation showing management's review and approval of costs as being allowable under the grant terms. Also, an expense was charged to the grant in error.
Questioned costs: $16.
Context: For 36 of the 60 allowable general disbursement cost transactions selected for testing, there was no documentation showing management's review and approval of the expense as being allowable. For 1 of the 60 general disbursement costs transactions selected for testing, it was charged to the grant in error, causing it to be a questioned cost.
Cause: Error by management when reviewing the expenses to document their review on the invoice or other supporting documentation.
Effect: If costs are not reviewed and approved as being allowable, it could result in unallowable costs being charged to federal grants.
Repeat Finding: Repeat Finding of 2023-005.
Recommendation: We recommend the Organization enhance its internal controls in order to require the maintaining of appropriate supporting documentation to show the review and approval of expenses charged to grants, prior to drawing down grant funds.
Views of responsible officials: The Organization will continue to review all documentation and ensure proper signatures accompany the documentation going forward.