Finding Text
U.S. Department of Treasury
Coronavirus State and Local Fiscal Recovery Funds
Applicable Federal Award Number and Year – H4HRG23166 and H4HRGP23180 – 2024
Matching, Level of Effort, Earmarking
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. This includes proper tracking and monitoring of matching expenditure requirements.
Condition: During our testing, it was identified the Organization did not have a formal tracking and monitoring process to accumulate total matching expenditures incurred towards the requirement for each award.
Cause: The Organization has limited grants with matching requirements, therefore formal processes for tracking were not implemented.
Effect: The Organization’s internal controls failed to adequately monitor and track the matching expenses incurred to ensure compliance with the award requirements.
Questioned Costs: None reported.
Context/Sampling: Not applicable.
Repeat Finding from Prior Year: No
Recommendation: The Organization should implement internal controls to ensure matching expenditures are tracked throughout the award period and to ensure matching requirements of individual awards are complied with.
Views of Responsible Officials: Management agrees with the finding.