Finding Text
Finding 2022-004: Inadequate Internal Controls over Compliance Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.027 Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Snohomish County Human Services Pass-through Award Number: EL-22-AR-11-394 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended December 31, 2022, the Organization lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for activities allowed or unallowed, allowable costs/cost principles, procurement and suspension and debarment, and reporting. We have determined this to be a material weakness in internal control over compliance. Cause: The Organization had limited management and administrative staff during the year ended December 31, 2022. Further, as described in finding 2022-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.