Finding Text
Finding 2023-002 Federal Program: Coronavirus State and Local Fiscal Recover Funds, AL# 21.027 Type of Finding: Significant deficiency in internal controls over compliance and immaterial non-compliance Compliance Requirement: Reporting Criteria: In accordance with the Uniform Guidance (2 CFR §200) and the pass-through agency grant agreement, Creating Housing Coalition as a sub-recipient, must submit accurate, complete, and timely reports as required by the federal awarding agency. Internal controls must be established and maintained to provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of the award. Condition and Context: The auditee did not maintain adequate internal controls over compliance with federal reporting requirements. Specifically, the required quarterly and annual performance reports were submitted late to the granting agency. Cause: The organization lacked documented internal controls to ensure timely reporting. Additionally, there was a lapse in reporting during a period of staffing changes subsequent to year end. Effect: Deficiencies in the internal controls over federal reporting requirements could result in inaccurate information being reported to granting agencies and increases the risk of material non-compliance with federal regulations and grant requirements. Questioned Costs: None. Repeat Finding: No. Recommendation: We recommend the organization: Establish and document clear responsibility for report preparation and review; Implement internal control procedures, including supervisory review and reconciliation of data prior to submission. Develop a reporting requirements calendar or monitoring system to ensure timely submission of reports; and Provide training to staff responsible for reporting to ensure understanding of federal requirements. View of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.