Finding Text
2023‐006 Department of Treasury
Federal Financial Assistance Listing/ALN 21.027
COVID‐19 Coronavirus State and Local Fiscal Recovery Funds
Allowable Costs and Allowable Activities
Noncompliance and Material Weakness in Internal Control over Compliance
Criteria ‐ A good system of internal controls includes a process to ensure that costs reimbursed
under federal programs are in accordance with 2 CFR Part 200, Subpart E.
Condition ‐ We reviewed the supporting documentation for a sample of the expenditures
reimbursed under the federal grant for the remodel project. This included supporting
documentation for the amount and allowability under the grant. It was determined that two
expenditures were for another grant, one expenditure was paid from an estimate, and six
expenditures were for expenses not included in the grant proposal.
Cause ‐ During the course of our engagement, we noted that internal controls were not
adequately designed to allow for the compliance with Uniform Guidance.
Effect ‐ The deficiency in internal controls resulted in material noncompliance to the
Organization.
Questioned Costs ‐ None Reported.
Context/Sampling ‐ A nonstatistical sample of 46 costs were selected for expense testing. 9 out
of the 46 transactions were not in accordance with Subpart E of Uniform Guidance. These
transactions totaled $24,913 of $3,274,092 costs tested.
Recommendation ‐ Management should implement internal controls to ensure all costs under
the program are handled appropriately under Uniform Guidance, Subpart #.
Views of Responsible Officials ‐ Management is in agreement with this finding.
Repeat Finding – This is a new finding.