Finding Text
Significant deficiency in internal controls over compliance related to reporting. Federal Agency: Department of Justice Department of Labor Program Title: Services for Trafficking Victims Community Project Funding/Congressionally Directed Spending Assistance Listing Number: 16.320 17.289 Award Numbers: 15POVC-24-GG-00883-MINO and 15POVC-22-GG-03855-HT; 23A60CP000069-01-00 Project Period: October 1, 2024 ‐ September 30, 2027 and October 1, 2022 ‐ September 30, 2025 June 1, 2023 ‐ May 31, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a nonfederal entity to establish a system of internal controls in order to ensure compliance with compliance requirements under federal awards. Condition/Context for Evaluation During the audit for the year ending December 31, 2024, we noted two instances out of four there was no evidence of review and approval over the financial quarterly reports related to reporting of the federal award. Questioned Costs None. Cause The Organization’s internal controls were not sufficient to ensure documentation was retained of review and approval for submission for required reporting. Effect or Potential Effect Without proper approval or evidence of approval, the Organization could submit reports with errors or that do not comply with the criteria requirements under Uniform Guidance. Repeat Finding Not Applicable. Recommendation We recommend that management develop internal controls for documentation of review and approval of report submissions under the grant. Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying management corrective action.