Finding Text
Program: Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing No.: 21.027 Federal Agency: U.S. Department of Treasury Passed-through: California Department of Finance Award Number and Year: CSLFRF, 2022 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) requires that the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: We noted that the supporting documentation provided did not have evidence of segregation of duties for the preparation and approval of the submitted report. Cause: The City’s internal control environment was impacted by a shortage of staff necessary to fully conduct the program. Effect: The City’s reports on the awards did not have segregation of duties between the preparer and reviewer of the reports. Questioned Costs: None reported. Context/Sampling: We selected 100% of the City’s reports for the program. Repeat Finding from Prior Year(s): Yes. Recommendation: We recommend that the City continue to strengthen its policies and procedures over reporting to ensure that there is segregation of duties between the preparer and reviewer of reports. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.