Finding Text
Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: SLFRP1610 Award Period: July 1, 2022 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Organization is required to submit quarterly Project and Expenditure Reports to the Federal Agency. Condition: The Organization did not have controls in place to prevent, detect, or correct errors in reporting. Questioned Costs: None Context: During our testing, it was noted that there was no formal review of the quarterly report prepared before it was submitted to the grantor. Cause: The Organization was in the startup phase and maintaining current operations with limited staff. Effect: The auditor noted no instances of noncompliance with the provisions of reporting; however, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance. Repeat finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-002. Recommendation: We recommend that reports are prepared and reviewed by separate individuals. Views of responsible officials: We agreed with the above comment. The Organization will put a formal layer of review after preparation of the report and before submission to the grantor.