Finding Text
2025-001 - Lack of Independent Review and Approval of Reporting Finding Type. Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Treasury - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Direct award. Criteria. Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. Condition. During our audit procedures over the Township's reporting process, we noted that the annual financial report selected for testing did not include documentation that it was subject to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. Cause. This condition is the result of management not establishing such controls. Effect. As a result of this condition, the Township was exposed to an increased risk that the report filed could contain errors and not be detected and corrected on a timely basis. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the Township establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. View of Responsible Officials. We acknowledge the finding of significant deficiency in internal controls over compliance. While the matter is not considered to be material to the overall compliance requirements, we recognize the importance of maintaining robust internal controls to ensure full adherence to applicable regulations and policies. The Township has completed training sessions with relevant personnel on the updated compliance process. The Township has also designated an employee as grants manager to provide additional oversight over grant awards to ensure sustained compliance and timely identification of potential issues. Responsible Officials. Finance Director Estimated Completion Date. December 31, 2026