Finding 21246 (2022-003)

Finding #2022-003 ? Material Weakness and Other Noncompliance Applicable federal program: U. S. Department of the Treasury Passed through Montgomery County, Texas COVID-19 ? Emergency Rental Assistance Program Assistance Listing #: 21.023 Contract Number: CARES ERA Contract Year: 07/01/21 ? 6/30/22 Criteria: Reporting ? Management of Community Assistance Center is responsible for establishing and maintaining an effective system of internal control over government grant reporting to ensure all costs are allowable and reported in the correct period and that government grant revenue and receivables are properly reflected in the financial statements in accordance with generally accepted accounting principles. This finding is a repeat of prior year finding #2021-002. Condition and context: 2 of 4 CARES ERA grant billings tested showed no indication of reconciliation to underlying data. In each case, the amount of the billings were lower than the amount of expenses in the general ledger. Cause and effect: Failure to adequately establish and maintain effective internal controls over grant billings could result in financial statement errors and reporting noncompliance. Questioned costs: None Recommendation: Same as finding #2022-002. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.