Finding Text
Criteria: Per 2 CFR § 200.303(a), the non-Federal entity must establish, document, and maintain effective internal control over Federal awards that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes, regulations, and the terms and conditions of the awards.
Condition: Although the Parish maintains an internal grants policy which documents internal controls, the policy is not up to date with current Federal requirements and is not as prescribed in the grants policy as required by the Uniform Guidance. Further, the policy did not cover all aspects of compliance pertaining to the federal programs the Parish facilitates.
Cause: As discussed in item 2024-001, the Parish encountered several challenges during the transition of administration and key personnel during 2024.
Effect: The Parish’s failure to document internal control procedures increases the risk of noncompliance with federal requirements, misstatement of financial reports, and potential misuse of federal funds. This also contributed to inaccurate and unsupported data reported on the Parish’s SEFA, noncompliance with Uniform Guidance reporting requirements, and a delay in preparing the financial statements and the issuance of the financial statement audit in a timely manner. Therefore, the Parish is not in compliance with the internal control compliance requirement per 2 CFR § 200.303(a).
Recommendation: We recommend that the Parish enhance and document internal controls over financial reporting, as described in our recommendations described under item 2024-001.