Finding 21838 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-04-09

AI Summary

  • Core Issue: The Park Board did not have proof of approval for monthly and final progress reports before submitting them.
  • Impacted Requirements: This violates 2 CFR 200.303, which mandates internal controls for managing Federal awards.
  • Recommended Follow-Up: Ensure that all reports and reimbursement requests are approved by authorized personnel before submission to prevent compliance issues.

Finding Text

FEDERAL AWARD FINDINGS 2022-03 Reporting Information on Federal Program: Gulf of Mexico Energy Security Act of 2006, Texas Natural Resource Code, Chapter 33, Coastal Management Program Project of Special Merit Criteria or Specific Requirement: 2 CFR 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. Condition: The four monthly progress reports and final progress report selected for testing did not have any evidence of approval prior to the submission of the report. Questioned Cost: There are no questioned costs related to this finding. Context: In the testing of the monthly performance reports and final reports due upon completion and the request for reimbursement reports submitted to the grantor under the reporting compliance requirement, the Park Board was not able to provide evidence that such reports were approved prior to submission. Effect: The failure to maintain evidence of approval of a report may result in an inaccurate submission to the grantor which can lead to noncompliance with laws and regulations. Cause: The Park Board failed to maintain evidence that the required reports submitted to the grantor were approved by authorized personnel prior to submission. Recommendation: We recommend that the Park Board maintain evidence of approval by an authorized official of the reports and requests for reimbursements prior to submission to the grantor. Management Response: We agree with the finding. The procedure of maintaining appropriate evidence of approval prior to submitting quarterly reports and requests for reimbursement to the grantor will be implemented in fiscal year 2023.

Corrective Action Plan

The procedure of maintaining appropriate evidence of approval prior to submitting quarterly reports and requests for reimbursement to the grantor will be implemented in fiscal year 2023.

Categories

Cash Management Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 598280 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.015 Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States $3.02M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.44M
15.435 Gomesa $1.09M