Finding Text
Assistance Listing Number 21.027 - COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - U.S. Department of Treasury - Federal award identification number – 38080716K and ARPA100007 - Federal award year – 2022 and 2023 Significant Deficiency Criteria: Uniform Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards to establish and maintain internal controls over federal awards to ensure compliance with applicable laws, regulations, and the terms and conditions of the award. This includes maintaining documentation that evidences the design and operating effectiveness of control activities, such as supervisory reviews and approvals related to allowable costs and program compliance. Condition: The Company was not able to evidence the review and approval of non-payroll expenses incurred in connection with the Coronavirus State and Local Fiscal Recovery Funds grant program. Cause: The Company did not implement procedures to retain documentation evidencing the performance of specific internal control activities over compliance. Effect: There is an increased risk of improper use of grant funds. Questioned costs: None. Context: The Company could not provide evidence of review and approval of non-payroll expenditures for the program totaling $5,008 of the total $4,144,691 on the schedule of expenditures of Federal awards. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: We recommend management review current processes, polices and procedures to ensure evidence of review and approval of activities allowed or unallowed and adherence to applicable cost principles is properly maintained. View of responsible officials and planned corrective actions: Management agrees with the finding and recommendation.