Finding Text
Coronavirus State and Local Fiscal Recovery Funds: Material Weakness in Internal Control Over Reporting Condition: During our testing of reporting requirements, we noted that the Organization did not have adequate internal controls established to ensure the submission of complete and accurate required reports. We noted that reports were prepared by one individual without supervisory review or approval, and no other adequate internal control could be identified. Criteria: The Uniform Guidance (2 CFR 200.303) requires entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the award. Cause: Management has not established procedures requiring review of reports prior to submission. Effect: As a result of the lack of internal controls over reporting, reports may be submitted with inaccurate information. Although no noncompliance was identified, this lack of internal controls increased the risk of inaccuracies not being detected and corrected. Context: The population subject to reporting requirements included one report. The sample size of one report was determined. Recommendation: We recommend that management implement internal control procedures over reporting, including supervisory review and approval of reports prior to submission. Views of Responsible Officials: Management agrees with the finding.