Finding Text
FINDING 2024-002 – Reporting; Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance Department of Commerce Assistance Listing Number: 11.307 Federal Program Names: Economic Adjustment Assistance Award Years: 2024 Criteria: Federal regulations and grant and contract conditions require that applicable reports be filed timely. Condition and context: We noted the first quarterly performance report was not submitted in accordance with the award agreement timeframe. Questioned costs: None. Effect: Without centralized controls that include monitoring of reporting due dates reports are not submitted timely. Cause: This occurred because of a lack of controls to segregate the duties between the preparer of the reports and supporting documentation and a reviewer to ensure timely reporting. Repeat finding: No. Recommendation: We recommend the Organization implement a review control with someone separate then the preparer in the reporting process to identify any errors prior to submitting reports, maintain supporting documentation, and ensure timely submission. Views of responsible officials and planned corrective actions: Management agrees with the assessment and has implemented corrective action. The Organization has implemented a review and documentation control surrounding the timely submission of all financial reports, special reports, and performance reports. Additionally, report backup and proof of timely submission must be retained.