Finding Text
Department of Treasury
Federal Assistance Listing #21.027
Coronavirus State and Loan Fiscal Recovery Funds
Reporting
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.
Condition - During our testing, we noted a lack of documentation of a secondary review on the expense reports
that were required to be submitted.
Cause - The Organization did not have an adequate internal control policy in place to ensure that a secondary
review and approval of the reports was taking place.
Effect - The lack of adequate policies governing review and approval increase the risk that employees
participating in the federal award administration may not be able to detect and correct noncompliance in a
timely manner.
Questioned Costs - None.
Context - A selection of three expense reports out of total population of six were tested. Documentation of a
secondary review was missing from the three reports tested.
Repeat Finding from Prior Years - No
Recommendation - We recommend that the Organization enhance internal control policies to ensure that a
secondary review of expense report is taking place prior to submission and that those reviews are formally
documented.
Views of Responsible Officials - Management agrees with the finding.