Finding Text
2022-002 - Reporting Program: Congressional Appropriations Program (ALN 99.U19) Federal Agency: United States Department of Treasury Criteria: Quarterly reports are required to be submitted to the Online Reporting System (ORS) in accordance with contract specifications beginning in the first quarter of 2022 through June of 2023. Per 2 CFR section 200.303(a), a non-Federal entity must establish, document, 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 align with the 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). Condition: Supporting documentation was not available to substantiate certain key line items included in the quarterly reports. In addition, we did not observe evidence of supervisory review and approval prior to submission. Cause: The Organization did not have adequate controls to ensure supporting documentation was retained for all reports, including documentation reports were properly reviewed and approved prior to submission. Effect: The Organization was not in compliance with the programs reporting requirements and lacked internal controls over the review and approval of reports. Questioned Costs: Undetermined Context: We tested 4 of 4 quarterly reports submitted during the audit period, totaling reported federal expenditures of $489,764. Repeat Finding: No Recommendation: We recommend that management review their policies and procedures to ensure that all quarterly reports and the supporting documentation used to prepare the reports are retained for audit purposes. We further recommend that all reports be reviewed and approved by someone other than the preparer prior to submission. Views of Responsible Officials: See Corrective Action Plan.