Finding Text
2024-002 - Lack of Independent Review and Approval of Reporting
Finding Type. Significant Deficiency in Internal Controls over Compliance (Reporting).
Federal program(s)
U.S. Department of Treasury
COVID-19 - State and Local Fiscal Recovery Fund (CSLFRF) - Virtual Backlog Response Docket Grant (ALN 21.027); Passed through SCAO; SCAO-2023-063/SLFRP0127.
Criteria. Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions.
Condition. During our audit procedures over the County's reporting process, we noted that none of the quarterly program and financial reports selected for testing included documentation that they were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions.
Cause. This condition is the result of management not recognizing the importance of establishing such controls.
Effect. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis.
Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified.
Recommendation. We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented.
View of Responsible Official. The County’s grant policy #241 requires review and approval of grant financial and programmatic reporting. Management will ensure fiscal and program managers countywide have procedures in place to complete and document these independent reviews.
Responsible Official. Assistant County Administrator
Estimated Completion Date. December 31, 2025