Finding Text
2023‐007 Department of Treasury
Federal Financial Assistance Listing/ALN 21.027
COVID‐19 Coronavirus State and Local Fiscal Recovery Funds
Allowable Costs and Allowable Activities
Significant Deficiency in Internal Control over Compliance
Criteria ‐ A good system of internal controls includes a process to ensure that proper approvals
are obtained relating to costs under the program.
Condition ‐ We noted that the Organization’s internal controls did not have adequate internal
controls to ensure costs are properly approved. Cause ‐ During the course of our engagement, we noted that two costs under the program were
not formally approved.
Effect ‐ The Organization’s internal controls failed to formally approve costs under the program.
Questioned Costs ‐ None Reported.
Context/Sampling ‐ A nonstatistical sample of 46 costs were selected for expense testing. 2 out
of the 46 transactions did not have formal approval. These transactions totaled $400 of
$3,274,092 costs tested.
Recommendation ‐ Management should implement internal controls to ensure all costs under
the program are formally approved.
Views of Responsible Officials ‐ Management is in agreement with the finding.
Repeat Finding – This is a repeat finding of 2022-006.