Finding 1223494 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-07-09

AI Summary

  • Core Issue: Reports submitted lacked proper review and approval, violating internal control requirements.
  • Impacted Requirements: Compliance with 2 CFR part 200 section 303 for effective management of Federal awards.
  • Recommended Follow-up: Implement procedures for mandatory review and approval of reports before submission, with management initials as proof.

Finding Text

Reporting. ALN 21.027 Coronavirus State and Local Fiscal Recovery Fund. Criteria: Pursuant to 2 CFR part 200 section 303, the District is responsible for establishing and maintaining effective internal control over the Federal award that provides reasonable assurance that the District is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: All of the two reports selected for testing did not have sufficient audit evidence to demonstrate they were reviewed and approved prior to submission. Cause: Due to limited program staffing, reports were prepared directly by the Fiscal Coordinator and submitted to the grantor without an independent review. Effect: The District’s internal controls over this requirement were not operating effectively. Questioned Costs: None. Recommendation: The District should establish procedures to ensure reports are reviewed and approved prior to submission. Management's Response: The District agrees with the finding and will implement procedures that require a review and approval over reports, as demonstrated by the initials of the District Manager, prior to the submission of grant reports.

Corrective Action Plan

Contact Person: Eric A. Naguski, District Manager. Recommendation: The District should establishe procedures to ensure reports are reviewed and approved prior to submission in the state's GIS system. Action: The Financial Coordinator will prepare the quarterly report and related supporting documentation and enter the data into the state's GIS system. A draft of the quarterly GIS report and supporting documentation will be fowarded to the District Manager for review and approval. The manager approved report will be submitted in the state's GIS system by the Financial Coordinator for final review and approval by the state. Date for Completion: June 16, 2026.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1223493 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.13M
66.964 GEOGRAPHIC PROGRAMS - CHESAPEAKE BAY PROGRAM IMPLEMENTATION, REGULATORY/ACCOUNTABILITY AND MONITORING GRANTS $112,315
10.912 ENVIRONMENTAL QUALITY INCENTIVES PROGRAM $16,860