Finding Text
Compliance Requirement L. Reporting Finding Type Significant Deficiency in Internal Control Over Compliance Federal Agency U.S. Department of Treasury Federal Program Title Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number 21.027 Criteria or Specific Requirement: L. Reporting - 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The program requires submission of quarterly reports to the pass-through grantor by the 20th day of the month following the end of the quarter. Condition: During the audit, it was noted that the Organization did submit the quarterly reports in timely fashion. However, the Organization was unable to provide formal support for the internal review of the required reports under the major program before they were submitted to the pass-through grantor. Cause: The Organization lacks established procedures which provide formal evidence that the accuracy and completeness of required reports were verified before submission. Effect or Potential Effect: Without formal review controls in place, the Organization is more susceptible to reporting errors and/or noncompliance with federal requirements. Questioned costs: None Identification as a Repeat Finding: N/A - this was not reported as a finding in the prior audit report. Context: Of the four (4) quarterly reports tested, none contained formal support that an internal review took place prior to submission to the pass-through grantor. Recommendation: We recommend that the Organization implement a formal process for verifying the accuracy and completeness of required reports before submission. Views of Responsible Officials: The Organization disagrees with this audit finding.