Finding Text
Criteria: 2 CFR §200.328 and §200.302 provides that recipients of Federal awards must submit performance and financial reports in a timely manner, ensure reports are accurate and reconcilable to financial records, and maintain documentation of control activities, including review procedures. Condition: The Organization was unable to provide sufficient documentary evidence that reports were reviewed and approved prior to their submission to Federal agencies. Cause: There has been a substantial number of new hires as well as turnover of management personnel throughout various levels of the Organization, which has partially delayed the planned implementation of control activities that would facilitate supervisory review and approval of all financial and performance reports submitted to Federal funding agencies. Effect: Required performance and financial reports were not submitted to Federal agencies on a timely basis throughout the year. This indicates that identified controls over the Organization’s compliance with the Uniform Guidance special tests and provisions requirements regarding performance and financial reporting are not properly designed and implemented. Questioned Costs: None Context: We performed procedures to test the Organization’s reporting practices related to federal awards. We selected a sample of required financial and performance reports submitted to federal awarding agencies for testing. The objective was to verify whether reports were submitted timely, accurately reflected accounting data, and included evidence of management review. During the testing, we were unable to obtain sufficient and appropriate documentary evidence to corroborate the Organization’s compliance with reporting requirements. We noted that some reports were not submitted before the stated deadline. In addition, substantial adjustments were required to reconcile some of the amounts reported to the Federal awarding agencies with the Organization’s accounting records. Recommendation: We recommend that management establishes and implements policies that provide for documentary evidence of supervisory review of reports required by Federal agencies to ensure the timely submission of accurate reports throughout the year. Additionally, we recommend that the management establishes control activities to facilitate the reconciliation of data reported to Federal awarding agencies to the Organization’s underlying accounting records. Views of Responsible Officials: See management’s view and corrective action plan at the end of this report.