Finding 1149885 (2024-003)

Department of Homeland Security, State of Iowa Department of Homeland Security and Emergency Management, 97.039, 4483DRIAP00000005, 2024 Hazard Mitigation Grant Program Cash Management Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In two of two draw requests tested, we noted that the Cooperative did not have formal documentation to support the review of the draw prior to submission for reimbursement. Cause: The Cooperative did not have any formally documented review and approval over the draw requests. Effect: Lack of properly designed controls could result in a reasonable possibility the Cooperative would not be able to demonstrate compliance with the federal program. Questioned Costs: None reported. Context/Sampling: There were two draw requests made during the year and both were tested. Repeat Finding from Prior Year: No Recommendation: We recommend the Cooperative review internal control procedures over cash management to implement a formal review and approval process over draw requests prior to submission. The procedures should incorporate steps to retain documentation to support evidence of the review. Views of Responsible Officials: Management agrees with the finding.