Finding Text
Department of Homeland Security, State of South Dakota Office of Emergency Management, Federal Financial Assistance Listing #97.039, DR‐4469‐0015 & DR‐4469‐0016, 2024 Hazard Mitigation Grant Program Reporting Material Weakness in Internal Control over Compliance and Noncompliance Criteria: 2 CFR 200.303(a) states 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 three quarterly performance reports tested, we noted the Association improperly overstated expenditures incurred to date. Cause: The Association’s independent review process over the quarterly performance reports did not identify the overstatement. Effect: Lack of compliance with designed internal controls over reporting could result in the Association reporting incorrect or incomplete information. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 3 reports out of 8 quarterly performance reports. Repeat Finding form Prior Year: No Recommendation: We recommend the Association review internal control procedures over reporting to ensure reported amounts agree to supporting documentation and also that supporting documentation is retained. Views of Responsible Officials: Management agrees with the finding.