Finding Text
Federal Agency: Department of the Treasury Federal Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Identification Number: SLT-8854 Requirement: Reporting Type of Finding: Material weakness in internal control over major program; Noncompliance Criteria: Amounts reported on financial reports should be supported by the accounting records that support the audited financial statements and the schedule of expenditures of federal awards. Condition: Amounts reported as obligations and expenditures on the Project and Expenditure Reports did not match the supporting documentation. Cause: Review and approval of grant reporting did not take place at the level needed to support accurate federal reporting. Also, the program has had significant employee turnover. Effect: Misinformation presented to the federal government may lead to federal inquiries of those charged with governance. Context: The supporting documentation for one out of the two Project and Expenditure Reports did not tie to the amounts reported on the report. The information used to prepare the reports did not take into consideration accruals or judgments made by the finance department for the use of federal funds. Recommendation: We recommend that management implement a standardized reconciliation process to ensure that all Project and Expenditure Reports align with supporting documentation. This process should involve coordination between the reporting team and finance to validate that all amounts reported accurately reflect the use of federal funds. Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.