Finding Text
Condition and Context: As noted in findings 2022-001, 2022-003, 2022-004, 2022-005, 2022-006 and 2022-007, ITCN’s internal control over financial reporting and grants management was insufficient to provide the level of assurance necessary to demonstrate compliance with the federal awards. Criteria: 2 CFR §200.303 and 45 CFR §75.303, Internal Controls, requires that non-federal entities 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. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Cause and Effect: The cause is a lack of resources and oversight of the accounting and financial reporting process. The effect is that ITCN’s financial management system was insufficient to provide accurate financial information with reasonable assurance that ITCN is managing its awards in compliance with federal statutes, regulations and terms and conditions of its federal awards. Recommendation: We recommend that ITCN implement the recommendations noted in findings 2022-001, 2022-003, 2022-004, 2022-005, 2022-006 and 2022-007. Management’s Response: ITCN’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.