Finding Text
2025-001 –Significant Deficiency in Internal Control over Reporting Identification of federal programs: U.S. Department of Public Safety 16.575 The Council on Domestic Violence & Sexual Assault Criteria: In accordance with the reporting requirements applicable to ALN 16.575 and the internal control requirements set forth in Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.303, non- Federal entities must establish and maintain effective internal control over federal awards to provide reasonable assurance that compliance requirements, including reporting requirements, are met. Under the terms of the grant awards, performance reports were due quarterly. Condition: During testing of internal controls over performance reporting, we selected a sample of four (4) reports to determine whether evidence of review and approval was documented in accordance with established control procedures. Two (2) of the four reports tested did not contain adequate supporting documentation to demonstrate that a review and approval had occurred. Cause: Effect or potential effect: The absence of documented evidence of review appears to be due to inconsistent application of established control procedures and a lack of emphasis on maintaining formal documentation of approvals. Without documented evidence of review and approval, there is an increased risk that errors or irregularities in reports may not be detected and corrected in a timely manner. Additionally, the organization may be unable to demonstrate that key controls over performance reporting are operating effectively. Questioned Costs: Context: None During the audit of the major program, auditors requested copies of the required reports and their corresponding approvals. Two (2) out of the four (4) reports selected were not supported by sufficient documentation demonstrating that they had been reviewed and approved. Identification of Repeat Finding: Yes, repeat of finding 2024-001 Recommendations: We recommend that management reinforce existing policies requiring documented evidence of review and approval for all key reports. Controls should require reviewers to sign and date reports (or ensure electronic approval logs are retained) to provide a clear audit trail. Periodic monitoring should also be performed to ensure compliance with documentation requirements. Views of Responsible Officials: See Corrective Action Plan