Finding Text
Finding 2023-001
Federal Agency: U.S. Department of Treasury
Federal Program: Coronavirus State and Lical Fiscal Recovery Funds
ALN: 21.027
Compliance Requirement: Reporting
Type of Finding: Significant Deficiency
Repeat Find: No
Criteria:
Title 2 U.S. Code of Federal Regulations Section 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition:
During testing of the Coronavirus State and Local Fiscal Recovery Funds reporting compliance requirement, it was noted that there was not a structured second level review process over the preparation of the report prior to being submitted to the U.S. Treasury.
Context:
The quarterly report that was to be submitted for the Coronavirus State and Local Fiscal Recovery program was prepared by a staff; however, it was not reviewed prior to submission.
Questioned Costs:
None noted.
Cause:
The Town did not have a structured second level review of the report prior to submission to the Treasury.
Effect:
Errors could be made and not detected on a timely basis and therefore, monthly and/or quarterly reports may contain errors.
Recommendations:
We recommend the Town implement a review process over the report prior to the submission of the report where staff prepares, and a manager reviews the report. Evidence of performance and review of these reports should be maintained.
Views of Responsible Officials:
Management agrees with the finding.