Finding Text
Finding 2021-005 – Internal Controls Over Major Federal Program – Coronavirus Relief Fund
PASS-THROUGH GRANTOR: Oklahoma Office of Management and Enterprise Services FEDERAL
AGENCY: U.S. Department of the Treasury
ASSISTANCE LISTING NO: 21.019
FEDERAL PROGRAM NAME: Coronavirus Relief Fund
FEDERAL AWARD YEAR: 2021
CONTROL CATEGORY: Activities Allowed or Unallowed; Allowable Costs/Cost Principles, Period
of Performance
QUESTIONED COSTS: $-0-
Condition: During the process of documenting the County’s internal controls regarding
federal disbursements for Coronavirus Relief fund, we noted that Choctaw County has not established
procedures to ensure compliance with the following compliance requirements: Activities Allowed or
Unallowed; Allowable Costs/Cost Principles; and Period of Performance.
Cause of Condition: Policies and procedures have not been designed and implemented to ensure
federal expenditures are made in accordance with federal compliance requirements.
Effect of Condition: This condition could result in noncompliance to grant requirements and loss of
federal funds to the County.
Recommendation: OSAI recommends the County gain an understanding of requirements for
these programs and implement internal control policies and procedures to ensure compliance with
requirements.
Management Response:
Chairman Board of County Commissioners: We will implement control procedures to
ensure compliance with requirements.
County Clerk: We will watch our adherence to federal requirements closer.
County Treasurer: I will assist in implementing internal controls procedures to ensure compliance.
Criteria: The GAO Standards – Section 1 – Fundamental Concepts of Internal Controls – OV1.01
states in Dpeafritn: ition of Internal Controls
Internal control is a process effected by an entity’s oversight body, management, and other
personnel that provides reasonable assurance that the objectives of an entity will be
achieved.
2 CFR § 200.303 Internal Controls (a) reads as follows:
The non-Federal entity must:
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).